Latest news with #business transformation
France 24
a day ago
- Business
- France 24
Microsoft quarterly profits soar on AI and cloud growth
Microsoft reported profit of $27.2 billion on revenue of $76.4 billion, some $29.9 billion of which was brought in by its Intelligent Cloud business. "Cloud and AI is the driving force of business transformation across every industry and sector," Microsoft chief executive Satya Nadella said in an earnings release. "We're innovating across the tech stack to help customers adapt and grow in this new era." Microsoft's Azure cloud computing offerings brought in more than $75 billion for the company's fiscal year, which ended on June 30, in an increase of 34 percent from the prior year, according to Nadella. Microsoft shares jumped about 7 percent in after-market trades that followed release of the earnings figures. "This was a slam-dunk quarter for Microsoft with cloud and AI driving significant business transformation across every sector and industry," Wedbush Securities analyst Dan Ives said in a note to investors. "The company continues to capitalize on the AI Revolution." Microsoft is well-positioned to make money as increasing numbers of companies ramp up efforts to take advantage of artificial intelligence in their businesses, according to Ives. Microsoft was one of the first tech giants to double down on artificial intelligence when the launch of ChatGPT in 2022 rocked the tech industry. Like its rivals, it has spent massively on building the infrastructure necessary to power the AI revolution, with analysts keeping a close eye on the return on investment. The company in January said it was on track to pump about $80 billion into capital and infrastructure in the fiscal year. Nadella has said finding enough power sources for its AI data center needs was a priority. Microsoft in early July slashed a little less than four percent of its global workforce as it seeks to cut layers of middle management and leverage new technologies. "We continue to implement organizational changes necessary to best position the company and teams for success in a dynamic marketplace," a Microsoft spokesperson said in an email. The job cuts follow a round in May that saw about 6,000 positions culled from its global workforce. The company, which is advancing in its plans to deploy AI across all its products, said it was working to "empower employees to spend more time focusing on meaningful work by leveraging new technologies and capabilities." © 2025 AFP
Globe and Mail
a day ago
- Business
- Globe and Mail
NOW's Subscription Growth Picks Up: A Sign of More Upside?
ServiceNow 's NOW AI-powered platform is helping enterprises undergo business transformation by automating workflows across IT, customer service and business operations. NOW's cloud-based solutions streamline processes and improve productivity through intelligent automation. Growth in subscription revenues is the key driver of NOW's financial performance. In the second quarter of 2025, subscription revenues increased 22.5% year over year to $3.11 billion, surpassing the Zacks Consensus Estimates by 2.66%. Current Remaining Performance Obligations appreciated 21.5% year-over-year to $10.92 billion in the second quarter. ServiceNow secured 89 net new ACV deals over $1 million, including 11 above $5 million, implying strong enterprise demand during the reported quarter. Growth in NOW's subscription business is supported by rising adoption of its innovative product suite. AI-enhanced Pro Plus tiers of core products like ITSM, CSM and HRSD help customers automate workflows and accelerate resolution times. Tools such as Workflow Data Fabric and RaptorDB Pro unify data and support high-performance AI applications. In the reported quarter, the AI Pro Plus deal count increased by over 50% sequentially. ServiceNow also closed its largest Now Assist deal to date, exceeding $20 million, with 21 large transactions involving five or more Now Assist products. With strong adoption trends in place, ServiceNow expects 2025 subscription revenues of $12.785 billion and the Zacks Consensus Estimate for the same is pegged at $12.661 billion. As enterprises deepen platform adoption and expand across AI-driven SKUs, subscription growth is expected to remain the central engine for NOW's revenue expansion. NOW Faces Stiff Competition NOW faces stiff competition in the subscription-driven workflow automation space from the likes of Salesforce CRM and Pegasystems PEGA. Salesforce is benefiting from strong demand for its Einstein AI platform, which integrates across subscription offerings to enhance customer relationship management and automation capabilities. Salesforce has a steady subscription revenue growth driven by AI adoption. Salesforce recently expanded its subscription platform with advanced AI agents and workflow automation tools to compete directly with specialized automation providers like ServiceNow. Pegasystems remains a formidable competitor in the enterprise workflow subscription market, leveraging its GenAI Blueprint solution to accelerate application development. Pegasystems continues expanding its subscription-based platform with AI-powered decisioning capabilities, positioning it as a key rival for enterprise automation budgets in the growing subscription economy. NOW's Share Price Performance, Valuation and Estimates ServiceNow's shares have declined 6.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 11.4% but beating the Zacks Computer- IT services industry's decline of 9.9%. NOW Stock Performance Image Source: Zacks Investment Research ServiceNow stock is trading at a premium, with a forward 12-month Price/Sales of 14.19X compared with the sector's 6.72X. NOW has a Value Score of F. NOW Valuation The Zacks Consensus Estimate for ServiceNow's third-quarter 2025 earnings is pegged at $4.22 per share, which decreased by a penny over the past 30 days. This indicates a 13.44% increase year over year. ServiceNow, Inc. Price and Consensus The consensus mark for NOW's 2025 earnings is pegged at $16.79 per share, which has increased by 25cents over the past 30 days, suggesting 20.62% year-over-year growth. NOW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Pegasystems Inc. (PEGA): Free Stock Analysis Report
The Australian
3 days ago
- Business
- The Australian
Business transformation: creating value through risk management and controls
Once associated with the periodic undertaking of discrete projects, the concept of business transformation has evolved, expanded, and, well, 'transformed'. Disruptions ranging from emerging technologies to remote work have converged with external forces, such as supply chain disruption and the prevalence of inorganic growth models, to pressure businesses to continually evolve and adapt. Many business leaders have responded to internal and external disruptions and the demand for growth by launching transformation programs or a broader agenda that, for example, implemented a new enterprise resource planning system, digitised their finance function, modernised procurement or accounts payable processes, moved certain legal and HR data to the cloud, or worked through a merger or business outsourcing program. These business transformations, regardless of scope or complexity, have often helped enterprises meet strategic goals, improve ROI, and — at times — provided the resiliency to continue operations. However, corporate leaders are not yet done. The continual nature of transformation is emphasised in the findings of the Deloitte 2023 MarginPlus Survey, where more than 90 per cent of surveyed executives indicate their organisations are investing in permanent transformation capabilities to support their strategic agendas. Further, 59 per cent are looking to accelerate spend on transformation, while 44 per cent are seeking to expand the scope of transformation within their organisations. If there is a significant takeaway from the experiences companies have had with transformation efforts, it is likely related to risk management and the importance of a multitiered risk management program. Done effectively, such a program prompts leaders to consider risks at project inception. For example, they might think about embedding risk management strategies and tactics into the planning process to capture intended benefits, accurately reflecting investment returns, and managing compliance and other risks throughout the project and when the implemented solution is up and running. Risk Management Duo Many companies can benefit from a risk management program that addresses two key sources of risk — one related to the substantial transition under way during a transformation initiative and the other related to management of the risks and controls during the transformation and enhancing the future steady state. Consider how the two main risk management areas relate to transformation projects. Transition risk management focuses on identifying and addressing potential impacts related to the planning, execution, and implementation of the transformation itself. These are risks that could prevent a project from meeting its intended goals and benefits. For example, they might include the level of uncertainty related to the project, the amount of behavioural change required, and time or resource constraints. These risks, if left unchecked, could result in missed objectives and unrealised benefits. To effectively manage transition risks, leaders should think through the complexity of the transformation and tailor their project management and governance approach based on that assessment. For instance, is the project domestic or global? Who and how many individuals will be affected? How does the project align with broader business strategy? Based on the complexity of the project, risk management leaders can determine what controls are required to manage the transition. With greater complexity comes a need for heightened project governance and associated controls. This might include several decisions, such as the level of stakeholder management and the level at which project decisions should be made, identification of adequate and committed resources, an understanding of the impacts of change to the business, and a strong plan to communicate the effects of the change to internal and external partners. Leaders may also want to consider the cadence and scope of stage-gate reviews or checkpoints to periodically determine the health of the project, if it is meeting stated objectives, and whether the project is ready to move to the next phase or sprint. Risk and controls management focuses on the processes and systems that are being transformed, the transformation's potential impacts to the business, and maintaining both an effective controls environment during the transformation as well as enhancing controls in what leaders expect to be the steady state — that is, the transformed process. Depending on the size, scope, and complexity of the transformation, there may be strains on the business to deliver the project and business-as-usual processes and controls. It's important to understand which risk domains, including compliance requirements, will be affected by the project and how it could affect the organisation's current risk profile. For instance, new or emerging risks — such as hand-offs with a third party, advanced technologies, talent retention, or added operational complexity — may be an unintended by-product of the transformation. Similarly, new controls may be enabled or required, which if not planned upfront can be expensive to retrofit after the fact. A transformation program may unveil opportunities for enhancing the control environment, such as standardising controls globally across business units so that risks can be addressed in an easier or more streamlined fashion. It may also provide an opportunity for elevating where and how certain controls are performed or for considering which controls would be good candidates for automation. Business transformations can also enable risk management professionals to extend their expertise into additional risk domains — for example, into operational risk. Governance policies and frameworks may also need to shift, and — if so — they may be ineffective or create friction if relevant stakeholders have not been involved in the decision-making. Establishing a foundation for monitoring roles and for evaluating whether internal controls are operating as intended during and after the transformation is also essential for achieving transformation goals. If the goal of the business transformation is ultimately to generate ROI in the form of greater efficiency, security, and resiliency, then leaders will likely need to address two critical risks in concert: those associated with the transition to a new way of working, and those related with supporting the transformation with a strong risk and controls environment. — By Geoffrey Kovesdy, principal, Kristen Heikkinen, managing director, Shelby Millican, senior manager, and Nichol Astillero, manager, all with Deloitte & Touche LLP; and Steve Peck, partner, and Jane Connor, director, both with Deloitte Canada. As published by the Deloitte US Chief Financial Officer Program in the 26 October 2024 edition of The CFO Journal in WSJ. Disclaimer This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL'), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as 'Deloitte Global') does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the 'Deloitte' name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. Copyright © 2025 Deloitte Development LLC. All rights reserved.
Tahawul Tech
4 days ago
- Business
- Tahawul Tech
ServiceNow research shows that enterprises in the Middle East are struggling to get to grips with AI
ServiceNow, the AI platform for business transformation, has released its latest Enterprise AI Maturity Index in partnership with Oxford Economics. The findings reveal a surprising trend in Europe and the Middle East: although AI investment continues to grow, the average AI maturity score across the region has dropped by 10 points year over year. As enterprises struggle to keep pace with rapid innovation, many are finding it difficult to translate AI ambition into scalable, effective execution. The index examines five key components: leadership and strategy, workflows, talent, governance, and investment. Together they provide a comprehensive view of how prepared organisations are to scale AI successfully; their AI maturity level. Now in its second year, the global report draws on insights from almost 4,500 respondents globally, including 1,950 across nine markets in Europe and the Middle East including the United Arab Emirates (UAE) and Saudi Arabia. It shows that emerging technologies such as agentic AI are fuelling experimentation and delivering early returns across the region. However, the pace of change is moving faster than organisations' ability to scale AI in a structured, governed way. To this end, the region's average AI maturity score has dropped 10 points year on year, from 44 to just 34 out of 100. Cathy Mauzaize, President, EMEA at ServiceNow, said, 'Organisations across Europe and the Middle East are accelerating their AI projects, but many are still in the early stages of their journey. They recognise the potential and now is the time to build on that energy. To keep moving forward, organisations are exploring how to lay the right foundations to make the data work for them, and give their people the skills to use AI with confidence. According to IDC, European spending on artificial intelligence will reach $144.6 billion in 2028[1]. The opportunity is huge, but only if we focus on getting the basics right today.' The report also outlines three major trends shaping the region's AI journey and what's needed to turn early success into lasting transformation. AI is outpacing organisations' capacity to harness it There is a clear appetite for innovation, with nearly half (47%) of organisations in Europe and the Middle East launching more than 100 AI use cases in the past year. UAE-based organisations are showing similar AI activity (49%), reflecting growing interest in large-scale experimentation. Still, most remain in the early stages of implementation, as reflected in this year's overall European AI maturity score of just 34. The majority of the region's organisations are focused on experimentation and expansion, with only 6% reaching the augmentation stage, which is the most advanced stage identified in the survey. In the UAE, the AI maturity score stands at 35 — which is the highest in Europe and the Middle East, tied with the UK — with 9% of organisations progressing to the most advanced stage. Agentic AI presents a clear opportunity Agentic AI, the AI that can act autonomously, is positioned to reshape enterprise automation. However, awareness varies widely across the region. While 15% of organisations in Europe and the Middle East are already using agentic AI and 42% plan to implement it within 12 months, familiarity is still in its early days. Only one in five organisations are very family with agentic AI, revealing a significant knowledge gap. The opportunity is clear, with over half of early adopters in Europe reporting improved gross margins (58%), greater efficiency and productivity (59%), and better experiences (60%). Governance is the missing link Rising adoption brings rising risk. AI at scale introduces serious challenges around cybersecurity, privacy, and regulatory compliance. And while the number of UAE organisations that have made significant strides in AI data governance rose slightly from 42% in 2024 to 45% in 2025, there is a need for a greater focus on managing AI risk effectively. This is particularly true given that data security is cited by UAE organisations as the top barrier to realizing AI value. To scale AI safely and effectively, governance must be foundational — not an afterthought. That means embedding policy, oversight, and accountability into platforms from the outset and approaching new technologies like agentic AI with a clear strategy in place.
Gulf Business
4 days ago
- Business
- Gulf Business
New report reveals 10-point drop in AI readiness in EMEA
Image: Pexels ServiceNow, the AI platform for business transformation, has released the latest edition of its The study evaluates enterprise readiness across five critical components: leadership and strategy, workflows, talent, governance, and investment. These indicators collectively assess how well-prepared organisations are to scale AI effectively. Now in its second year, the global report surveyed nearly 4,500 respondents worldwide, including 1,950 from nine markets in Europe and the Middle East — including the UAE and Saudi Arabia. While emerging technologies such as agentic AI are driving experimentation and delivering early results, the region's AI maturity score dropped from 44 to just 34 out of 100. This decline reflects growing challenges in turning innovation into structured, large-scale deployments. Cathy Mauzaize, president, EMEA at ServiceNow 'Organisations across Europe and the Middle East are accelerating their AI projects, but many are still in the early stages of their journey,' said Cathy Mauzaize, president, EMEA at ServiceNow. 'They recognise the potential and now is the time to build on that energy. To keep moving forward, organisations are exploring how to lay the right foundations to make the data work for them, and give their people the skills to use AI with confidence. According to IDC, European spending on artificial intelligence will reach $144.6bn in 2028. The opportunity is huge, but only if we focus on getting the basics right today.' Key findings from the report AI growth is outpacing enterprise readiness Nearly half (47 per cent) of companies in Europe and the Middle East reported launching more than 100 AI use cases in the past year. In the UAE, 49 per cent of organisations reported similar activity. However, most are still in early implementation phases. Just 6 per cent of organisations in the region have reached the most advanced AI stage — augmentation. In the UAE, 9 per cent have reached that milestone, and the country shares the highest AI maturity score (35) in the region with the UK. Agentic AI is an emerging opportunity, with a knowledge gap Agentic AI — which enables autonomous actions — is beginning to reshape automation strategies across the enterprise. Yet understanding remains low. Only 15 per cent of organisations in Europe and the Middle East are currently using agentic AI, and 42 per cent expect to implement it within the next year. However, just one in five organisations are 'very familiar' with the technology, highlighting a knowledge gap. Still, the potential is evident: among early adopters, 58 per cent saw improved gross margins, 59 per cent gained greater efficiency and productivity, and 60 per cent reported enhanced user experiences. Read: Governance remains a weak link As adoption increases, so do risks tied to privacy, cybersecurity, and regulation. In the UAE, organisations making 'significant strides' in AI data governance rose modestly from 42 per cent in 2024 to 45 per cent in 2025. Yet data security continues to be the top concern blocking AI progress. To address these issues, the report stresses that AI governance should be embedded from the outset. Platforms need to integrate oversight, accountability, and strategy — particularly when exploring advanced technologies like agentic AI.
