ServiceNow's shares jumped more than 15% after the company reported strong first-quarter earnings and provided an optimistic forecast for the year ahead, despite the challenging macroeconomic conditions. The enterprise technology firm announced adjusted earnings of $4.04 per share on revenues of $3.09 billion. These figures surpassed analysts' expectations of $3.83 per share and $3.08 billion in sales, as reported by LSEG. Year-over-year, ServiceNow's revenues increased by nearly 19%, while its net income rose to $460 million, or $2.20 per share. This represents a significant improvement from the previous year's $347 million, or $1.67 per share. Additionally, the company's current remaining performance obligations grew by 22% to reach $10.3 billion. In light of these strong results, ServiceNow raised its full-year financial guidance. However, the company noted that it is cautiously incorporating only a portion of these gains into its full-year outlook to account for potential risks from the geopolitical climate. Shares of ServiceNow had declined approximately 12% year-to-date due to market volatility, including concerns over former President Donald Trump's tariff policies and the potential impact of cost-cutting measures from the Department of Government Efficiency (DOGE). ServiceNow's public sector business showed robust growth, increasing by 30% during the quarter. This growth includes 11 federal deals exceeding $1 million each. CEO Bill McDermott mentioned during the earnings call that the company has had "very positive" discussions with DOGE, which is led by Tesla CEO Elon Musk. He emphasized that both organizations share a mission to transform government operations and citizen interactions, aligning with ServiceNow's position as a leading enterprise AI platform. Subscription revenue, which forms a substantial part of ServiceNow's total revenue, stood at $3.01 billion. This slightly exceeded the estimated $3 billion. For the second quarter, ServiceNow anticipates subscription revenues to fall within the range of $3.03 billion to $3.04 billion, surpassing the expected $3.02 billion. By the end of the first quarter, ServiceNow had 508 customers contributing annual contract values of around $5 million each, underscoring the company's ongoing expansion and customer base strength. These results highlight ServiceNow's resilience and strategic positioning in a rapidly evolving market, reinforcing its commitment to sustainable growth and technological innovation.