Company Snapshot

Investment Thesis

ServiceNow delivers a unified workflow platform that digitizes core processes across IT, customer service, and employee experience. High switching costs, 99% gross renewal rates, and expanding generative AI copilots drive durable subscription growth and operating leverage.

  • Platform Stickiness: Fortune 2000 customers standardize on the Now Platform for end-to-end digital workflows, producing >130% net expansion.
  • Generative AI: Now Assist copilots, introduced with the Vancouver and Washington releases, embed AI into incident resolution and knowledge creation.
  • Industry Solutions: Tailored modules for financial services, healthcare, and manufacturing open larger deal sizes and deepen partner-led implementations.

Revenue Mix

IT Service Management ~40% of FY24 subscription revenue
Customer Workflows ~26% — service operations
Employee Experience ~19% — HR & workflow apps
Creator & Other ~15% — low-code, security, ops

Mix based on ServiceNow fiscal year 2024 subscription disclosures; total revenue is 95% subscription, 5% professional services.

Recent Performance

MTD -3.09%
QTD -2.36%
YTD -15.50%
5Y +73.47%

ServiceNow has rebounded from the $912 level seen at the start of October as investors refocused on 24% subscription growth, but shares remain below the $1,054 opening print for 2025 as software multiples compress.

Strategic Insights

Now Assist Adoption

Embedding generative AI copilots into ITSM, customer workflows, and HR lowers resolution times and supports premium pricing on expansion deals.

Industry Playbooks

Packaged workflows for financial services, healthcare, and manufacturing compress implementation timelines and increase partner-led deal sizes.

Global Partner Leverage

Deloitte, Accenture, and other GSIs are scaling dedicated ServiceNow practices, extending reach into underpenetrated geographies and SMB segments.

Latest Coverage

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