While gas prices drop and inflation slightly cools, many experts and executives still fear an impending recession of the U.S. economy. But not all forecasts are dire — ServiceNow CEO Bill McDermott is hopeful that a coming recession wouldn’t cause long-term negative effects. Inflation has taken a downturn after months of rising prices and the labor market remains strong, but the Federal Reserve has steadily increased interest rates to stave off a recession. With that in mind, McDermott thinks that if inflation continues to drop and monetary policy stabilizes, markets can return to running free.
Cloud computing companies such as ServiceNow, and its larger competitors like Microsoft, have remained strong despite economic struggles, and McDermott has a strong outlook for digital companies, in particular. He predicts that many companies know which platforms matter the most to “double down on digital transformation.”
ServiceNow has maintained steady growth, reporting a 24% increase in revenue, which fell just below estimates. However, subscription growth hit $1.65 billion, a 25% increase year-over-year. These numbers fortify McDermott’s optimism, but avoiding a recession depends on stabilization.