ServiceNow beat Wall Street’s first-quarter earnings expectations and upped its fiscal year guidance.

The enterprise software organization noted conflict in the Middle East weighed on subscription revenue growth.

The corporation has made a flurry of deals as it aims to position itself as an “AI control tower.” This also touches on aspects of bear market.

ServiceNow reported first-quarter results on Wednesday that narrowly beat Wall Street’s estimates as the software firm noted the conflict in the Middle East dragged on subscription revenue.

Here’s how the enterprise performed versus LSEG estimates:

Revenue: $3.77 billion vs. $3.74 billion expected

Revenue for the quarter grew 22% year over year.In net income, The business reported $469 million, or 45 cents per share, a slight boost from $460 million, or 44 cents per share, a year ago.

The enterprise stated in its release that subscription revenue growth during the quarter “saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle East, due to the ongoing conflict in the region.”

The firm reported quarterly subscription revenues of $3.67 billion, slightly above the $3.65 billion expected by FactSet.

ServiceNow increased its forecast of fiscal 2026 subscription revenues to fall between $15.74 billion and $15.78 billion, up from the forecast it made last quarter of $15.53 billion to $15.57 billion.

“Our full-year guidance reflects a prudent assessment right now of the geopolitical environment,” CFO Gina Mastantuono told CNBC. “I definitely took a little bit of incremental conservatism because of the ongoing conflict in the Middle East and its potential impact on deal timing.”

In the first quarter, ServiceNow repurchased about 20 million shares, more than double the amount purchased in all of 2025. On its last earnings call, the corporation proclaimed board approval for an additional $5 billion in share buybacks.

The Santa Clara, California-In current remaining performance obligations for the quarter, based firm reported $12.64 billion, beating estimates of $12.56 billion. In latest annual contract value in the first quarter, It reported 16 transactions over $5 million, an surge of almost 80% year over year.

ServiceNow has been in a spending spree as it tries to position itself as an “AI control tower.” The stock has had a rough start to 2026, down about 30% year to date.

Mastantuono told CNBC that the company’s AI product portfolio has continued to outperform and is on track to exceed the company’s $1 billion target for 2026.

The enterprise also published it was expanding its deal with Google Cloud.

Earlier this week, ServiceNow completed its $7.75 billion acquisition of cybersecurity startup Armis, which was expected to close in the second half of the year.