ServiceNow CEO Bill McDermott Shows Optimism for a ‘Short-Lived’ Recession

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.

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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.