ServiceNow Inc

servicenow.com

What Do They Do?

Sells cloud-based workflow software and AI applications that help enterprises and public organizations automate work, connect systems, and manage technology and customer service.

How Do They Make Money?

Enterprise customers pay fixed subscription fees for software access, support and updates, typically invoiced annually in advance; professional services are generally billed monthly based on hours and expenses.

revenue

Segment	Share	Revenue	How money arrives
License and Service Recurring	97% FY2022: 95%		Recurring
Professional services and other Usage-based	3.0% FY2022: 4.9%		Usage-based

Who Are Their Customers?

Primarily sells to enterprise customers across industries, including government customers. A global direct sales organization sells subscription offerings, with additional sales through managed service providers and resale partners.

Customers above 10% of revenue, FY2025

of revenue from one customer

FY2024: 11% from one customer

Do Revenues Turn Into Profits?

Yes. It kept 13 cents of every revenue dollar as net income in FY2025 and turned 34 cents into free cash flow.

Operating income, FY2025

14% of revenue

▲ +34% vs FY2024 ($1.4B, 12%)

Net income, FY2025

13% of revenue

▲ +23% vs FY2024 ($1.4B, 13%)

Free cash flow, FY2025

34% of revenue

▲ +34% vs FY2024 ($3.4B, 31%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +24%; vs $3.2B in Q2 FY2025
Net income: ▼ −23%; vs $385M in Q2 FY2025

Subscription share of revenue vs 96.8% in Q2 FY2025

Apr 22, 2026 Acquired Armis Security Ltd.

Growing. Revenue grew 2.3x in 4 years, from $5.9B in FY2021 to $13.3B in FY2025, about 23% a year.

AI product offerings The older report describes AI as functionality that can enhance platform workflows; the latest report presents integrated AI tools, AI agents and governance as offerings within its platform.

Revenue over time

License and Service Professional services and other

$20B$10B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with Microsoft, Oracle, SAP, Salesforce, and Workday

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