ServiceNow Inc. gained in late trading after giving an outlook for sales growth that topped analysts’ estimates, suggesting that software demand remains resilient even as the economy reels from the threat of tariffs.

ServiceNow’s (NOW) stock is up 8% after the software company reported better-than-expected financial results and forecast more subscription

Some worried ServiceNow’s federal business would be under pressure from “DOGE” cuts. But CEO Bill McDermott said the company is benefitting from the efficiency push.