ServiceNow President and CFO Gina Mastantuono described AI as a business “revolution,” said a U.S. government shutdown had paused federal deal signings during Q3 FY2025, and framed the company’s CRM and CPQ expansion as a response to customer demand. Her comments offer a view of ServiceNow’s strategy—not independent proof of AI returns or a head-to-head verdict against Salesforce.
What ServiceNow’s CFO said about an AI “bubble”
In a CRN interview about ServiceNow’s Q3 FY2025 performance, Mastantuono rejected the idea that AI was merely hype. “AI is real,” she said. “It’s not hype. It’s not a bubble, it’s a revolution.” She argued that businesses should assess AI by the outcomes it produces.
Her examples included employees completing tasks faster and sales staff spending less time preparing for meetings. Those are company examples and claims from the interview; the sources do not independently measure the time reductions or verify the customer outcomes.
How to interpret the AI figures
Mastantuono said ServiceNow’s AI business was on pace to exceed $500 million in annual contract value (ACV) in 2025, and cited a $1 billion goal for 2026. These were expectations stated in the interview, not reported results. ACV is a measure of contracted value on an annualized basis; it is not the same as recognized revenue.
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She also cited internal estimates of $355 million in annualized productivity value and $100 million in projected cost savings for 2025. The first is an estimated value of productivity, not cash savings; the second was projected savings, not a reported realized result. The interview does not provide independent validation or a detailed methodology for either estimate.
Why she advocated experimentation
Responding to concerns that AI pilots can fail, Mastantuono encouraged companies to run experiments and move successful proofs of concept into production. She illustrated the idea with a hypothetical portfolio in which 12 of 20 workflows succeed. That example explains her argument; it is not a measured success rate for ServiceNow customers.
What the shutdown meant for federal business in Q3 FY2025
Mastantuono said ServiceNow’s U.S. federal business grew more than 30% year over year in Q3 FY2025. In the same interview, she said the government shutdown had put new deal signings on hold and introduced uncertainty into Q4 guidance. “The government is shut down, which means that signing new deals is put on hold for the moment,” she told CRN.
She characterized the effect as a timing issue and said the quarter had exceeded expectations. That is management’s assessment, not evidence that every delayed deal later closed. The comments concern the Q3 FY2025 period; they do not establish the status of federal procurement or shutdown effects today.
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What ServiceNow reported financially for the quarter
ServiceNow’s Q3 FY2025 financial release reported subscription revenue of $3.299 billion, up 21.5% year over year. The quarter ended September 30, 2025, and the company issued the release on October 29, 2025. This reported revenue is distinct from Mastantuono’s forward-looking AI targets and internal productivity and savings estimates.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How Mastantuono framed competition with Salesforce
The interview described both companies as moving into neighboring enterprise workflows: ServiceNow was expanding in CRM, customer service and configure-price-quote (CPQ), while the interviewer framed Salesforce as moving into IT service management (ITSM). Mastantuono said customers were rethinking CRM “not as a system of record, but a system of action,” and wanted customer-facing workflows that felt more like the ServiceNow experiences they used in IT and HR.
She pointed to ServiceNow’s Logik.AI CPQ offering and described the customer-service business as worth more than $1.5 billion. That figure is her characterization in the interview; the cited financial release does not separately define it.
The discussion explains ServiceNow’s strategic rationale, but it does not establish that ServiceNow or Salesforce has better CRM, CPQ or ITSM products. It supplies no neutral comparison of product capability, price, market share or implementation results. An enterprise buyer evaluating the vendors would need to compare workflow scope and integrations, AI governance and data handling, customer-service and CPQ features, ITSM breadth, total contract cost, implementation effort and expected time to value.
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Sources
- CRN interview with ServiceNow President and CFO Gina Mastantuono (Q3 FY2025 context; lightly edited for clarity).
- ServiceNow Q3 FY2025 financial results (quarter ended September 30, 2025; released October 29, 2025).
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