"Months after he became CEO at the end of 2019, the COVID pandemic shut down the global economy; then in late 2022, ChatGPT kicked off an AI revolution that continues to transform the business world. Throughout all the tumult, McDermott has steadily grown ServiceNow's business, which provides online software for companies to manage their HR, IT, and other internal functions. Annual revenue, which was $3.46 billion the year he joined in 2019, totaled $13.3 billion in 2025, and is on track to surpass $15 billion this year."
"Impressive? Not according to Wall Street, which has punished the company's stock. Shares of ServiceNow are down 39% this year, and off more than 55% from their 52-week high. On Monday, ServiceNow unveiled a new financial forecast that promised to double revenue to at least $30 billion by 2030. The stock rose less than one percent."
"Blame it on the Saaspocalypse, the fear that AI will make software-as-a-service businesses like ServiceNow unnecessary in the eyes of customers. To McDermott, it's a false narrative that misunderstands the enterprise software market and ignores how AI is a tailwind, not a headwind, to ServiceNow's business. "It's nonsense," he says of the Saaspocalypse concept."
"The disconnect between Wall Street and "Main Street customers" is frustrating, acknowledged McDermott, a Long Island, New York native with the accent to match. Still, he maintained that the stock's drubbing would not shake him. "I have walked over tougher challenges than that on my way to a fight. That's the story of my life, man," he said. "I ain't going anywhere. I can take anybody's blows and still come out on top.""
ServiceNow’s CEO has led the company through major disruptions including the COVID-19 shutdown and the rise of generative AI. The company provides online software used by enterprises to manage HR, IT, and other internal functions. Revenue grew from $3.46 billion in 2019 to $13.3 billion in 2025, with a forecast to surpass $15 billion in the current year. Wall Street has punished the stock, which is down 39% this year and more than 55% from its 52-week high. ServiceNow forecasted revenue doubling to at least $30 billion by 2030, but the stock rose less than 1%. The CEO rejects the idea that AI will make SaaS obsolete, calling it a false narrative and a misunderstanding of the market.
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