ServiceNow CEO Bill McDermott was a big dealmaker at SAP, but he's taking a different approach today
The last time ServiceNow CEO Bill McDermott orchestrated a big acquisition was in late 2018, when he was running SAP and led the $8 billion purchase of Qualtrics. Some analysts and investors at the time questioned the steep price.

McDermott says that skepticism has clearly been put to rest.

SAP announced this week that it's spinning out Qualtrics through an IPO, taking advantage of the stock market's favorable view of high-growth software companies, particularly those that generate profit. Analysts at JMP said in a report after the announcement that Qualtrics has an enterprise value today, based on conservative growth estimates, of about $11.4 billion.

"Any question on valuation has more than been answered," McDermott told CNBC in an interview late Wednesday. "It's a premium asset and always has been."

SAP will still own the majority of Qualtrics and said in a press release that it will remain its "closest and most important co-innovation and go-to-market partner."

McDermott's comments came after ServiceNow reported better-than-expected second-quarter results and raised its third-quarter forecast. The stock slipped after hours on Wednesday, however, as billings guidance came in below estimates.