Here are 1-3 brief analogies for ServiceNow (NOW):

• Salesforce for internal enterprise workflows. (ServiceNow helps companies manage and automate their internal IT, HR, and other operational processes, much like Salesforce manages external customer relationships.)
• Workday for IT and broader enterprise service workflows. (While Workday focuses on HR and Finance, ServiceNow provides a similar cloud-based platform to streamline and automate IT, HR, and customer service delivery across an organization.)

• IT Workflows: Services designed to manage and automate IT operations, including IT service management, IT operations management, and IT asset management.
• Employee Workflows: Services that streamline human resources, workplace services, and other internal corporate requests to improve employee experiences.
• Customer Workflows: Services enabling businesses to deliver proactive customer service, manage field service, and enhance customer engagement.
• Creator Workflows: Services providing low-code/no-code development tools and integration capabilities to build and connect custom applications.
• Risk Workflows: Services for managing governance, risk, and compliance (GRC) across an enterprise, ensuring security and regulatory adherence.

ServiceNow (symbol: NOW) sells primarily to other companies, providing a cloud-based platform and solutions for enterprise digital workflows across various functions like IT, HR, customer service, and security operations.

For a B2B enterprise software provider like ServiceNow, definitively listing "major customers" by name is challenging, as their customer base spans thousands of organizations globally, and specific revenue contributions from individual clients are proprietary. However, ServiceNow serves a significant portion of the Fortune 500 and Forbes Global 2000, and examples of prominent public companies that have publicly acknowledged using ServiceNow solutions include:

• The Coca-Cola Company (symbol: NYSE: KO) - Utilizes ServiceNow for HR workflows and other enterprise services.

• Wells Fargo & Company (symbol: NYSE: WFC) - Employs ServiceNow for IT Service Management (ITSM) and other operational workflows.

• T-Mobile US, Inc. (symbol: NASDAQ: TMUS) - Uses ServiceNow for customer service management (CSM) and other IT operations.

• Equinix, Inc. (symbol: NASDAQ: EQIX) - Leverages ServiceNow for IT operations management (ITOM) and other digital transformation initiatives.

• Lufthansa Group (symbol: FWB: LHA) - Deploys ServiceNow for various IT and enterprise service management needs.

In addition to these examples, ServiceNow's customer base also includes numerous other large global enterprises, government agencies, and mid-market companies across diverse industries such as financial services, healthcare, manufacturing, retail, and telecommunications.

• Amazon.com, Inc. (AMZN)
• Microsoft Corporation (MSFT)

Bill McDermott, Chairman and Chief Executive Officer

Bill McDermott joined ServiceNow as CEO in late 2019 and was later named Chairman and CEO. Prior to ServiceNow, he served as CEO of SAP SE, where he oversaw an increase in market value from $39 billion to $156 billion. His extensive career includes 17 years at Xerox, where he became the youngest corporate officer, as well as leadership roles as President of Gartner and Executive Vice President of worldwide sales and operations at Siebel Systems. At the age of 16, he purchased the Amityville Country Delicatessen, using its earnings to finance his college education. McDermott is also the author of the memoir, "Winners Dream: A Journey from Corner Store to Corner Office." He currently serves on the board of directors for Zoom and Figma.

Gina Mastantuono, President and Chief Financial Officer

Gina Mastantuono became ServiceNow's Chief Financial Officer in January 2020, and in 2025, she was named President while continuing her role as CFO. Before joining ServiceNow, Mastantuono was the Executive Vice President and Chief Financial Officer of Ingram Micro Inc. from 2016 to 2020. She also served as Senior Vice President, Chief Accounting Officer, Controller, and International CFO at Revlon, Inc. from 2007 to 2013, and held various executive finance roles at IAC/InterActiveCorp. Mastantuono started her career at Ernst & Young in the entrepreneurial services group. She currently serves on the boards of directors for Gong and Roblox.

Key Business Risks for ServiceNow (NOW)

ServiceNow (NOW) faces several key risks, with the most significant revolving around the rapidly evolving landscape of artificial intelligence, potential challenges from strategic acquisitions, and persistent cybersecurity threats.

The foremost risk to ServiceNow's business is the potential for **AI disruption and intense competition in the AI space**. Analysts express concern that ServiceNow's standing as an AI orchestration leader could be challenged by major competitors like Microsoft by 2026. There are worries that investors might start viewing ServiceNow's core business as vulnerable to AI disruption. While ServiceNow has its own AI products with a hybrid monetization structure, similar strategies have not always insulated other software-as-a-service (SaaS) sub-sectors when this disruptive narrative takes hold. Furthermore, fierce competition in CRM and AI could undermine growth projections and reduce the valuation multiples investors are willing to assign to the company. There are also broader concerns regarding the social and ethical implications of AI use, which could damage ServiceNow's brand or lead to increased costs, potentially slowing the adoption of AI in their products if these concerns are not adequately addressed.

Secondly, **risks associated with strategic acquisitions** represent a significant concern. Recent reports of ServiceNow considering a substantial acquisition, such as the potential $7 billion purchase of cybersecurity company Armis, have prompted investor apprehension. These concerns include whether such large inorganic deals signal difficulty in achieving organic growth targets for 2026 and whether the integration of acquired companies might erode value. Such acquisitions could also divert ServiceNow's strategic focus from critical opportunities, including generative artificial intelligence. Historically, acquiring or partnering with other companies can introduce additional security risks.

Finally, **cybersecurity risks** remain a crucial ongoing threat. As a company dealing with sensitive customer data and critical IT operations, ServiceNow is consistently exposed to cyber threats. The company acknowledges that while past cybersecurity incidents have not materially impacted its business to date, there is no guarantee that future incidents will not occur or significantly affect its business strategy, operations, or financial condition. The increasing sophistication of cybercriminals and the inherent vulnerabilities that can arise from incorporating third-party or open-source software into their systems further heighten these risks. Geopolitically motivated cyberattacks, particularly during times of conflict, also pose a heightened risk to ServiceNow and its third-party providers, potentially disrupting systems, supply chains, and the ability to deliver services.

The clear emerging threat for ServiceNow comes from the aggressive expansion of major enterprise software vendors, particularly Microsoft, into comprehensive workflow automation, low-code/no-code platforms, and AI-driven service management.

Microsoft's Power Platform (Power Apps, Power Automate, Power Virtual Agents), coupled with its Dynamics 365 applications and deep integration of Azure AI services, is increasingly offering capabilities that directly overlap with ServiceNow's core strengths in IT Service Management (ITSM), HR Service Delivery (HRSD), Customer Service Management (CSM), and Creator Workflows. Given Microsoft's immense installed base across Office 365 and Azure, its ability to bundle these sophisticated workflow and service management tools into existing enterprise agreements could present a compelling and potentially more cost-effective alternative for companies deeply embedded in the Microsoft ecosystem, thereby eroding ServiceNow's position as the primary platform for enterprise workflow orchestration.

ServiceNow (NOW) operates in several large and growing addressable markets for its main products and services. The company's overall total addressable market (TAM) is substantial and is expected to grow significantly in the coming years.

ServiceNow's total addressable market is projected to reach $275 billion globally in 2026. Furthermore, ServiceNow estimates that Generative AI could add an additional $1 trillion globally to its total addressable market.

Here's a breakdown of the addressable markets for some of ServiceNow's key product areas:

• IT Service Management (ITSM): The worldwide market for IT Service Management was estimated at $10.5 billion globally in 2023. It is expected to more than double, reaching $22.1 billion globally by 2028, with projections suggesting the market will approach $28.7 billion globally by 2032. ServiceNow ranks as the No. 1 leader in ITSM Platforms by market share.

• Field Service Management (FSM): The global Field Service Management market was valued at $4.90 billion globally in 2024 and is expected to grow to $13.68 billion globally by 2032, at a compound annual growth rate (CAGR) of 13.7% from 2025 to 2032.

• ServiceNow Marketplace Apps (facilitated by App Engine): The global ServiceNow Marketplace Apps Market was approximately $1.68 billion globally in 2025. It is expected to rise to $1.81 billion globally in 2026 and is forecasted to reach $3.5 billion globally by 2034, expanding at a CAGR of about 7.6% during this period.

• Human Resources Service Delivery (HRSD): Null

• Customer Service Management (CSM): Null

• Environmental, Social, and Governance (ESG) Solutions: Null

ServiceNow (NOW) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Pervasive AI and Automation Integration: ServiceNow is heavily investing in and integrating Artificial intelligence (AI) and machine learning capabilities across its platform, particularly with its "Now Assist" product. This focus on AI-powered workflows, predictive analytics, intelligent automation, and virtual agents is a significant growth driver. The company aims for its AI products to exceed $0.5 billion in Annual Contract Value (ACV) in 2025 and is on track to hit a $1 billion ACV target by 2026 for Now Assist. This includes the development of agentic AI to enhance service management solutions and drive operational efficiencies.
2. Expansion Beyond IT Service Management (ITSM) to New Workflows and Industries: While ITSM remains a core focus, ServiceNow is actively expanding its capabilities into adjacent and new workflow areas such as Human Resources (HR), Customer Service Management (CSM), Security Operations (SecOps), Field Service Management, and Creator Workflows. The company is also developing industry-specific solutions in sectors like telecommunications, healthcare, manufacturing, and BFSI (Banking, Financial Services, and Insurance) to accelerate deployment and provide tailored solutions. Growth in specific sectors like transportation, logistics, and a resilient U.S. federal business also contribute to this expansion.
3. Growth in Customer Base and Expansion of Large Deals: ServiceNow continues to demonstrate consistent growth in its customer base, particularly in the number of customers with high Annual Contract Value (ACV). The company has a high customer renewal rate, which consistently remains around 98%. There is a reported increase in the number of customers with over $1 million and $5 million in ACV, indicating successful upselling and cross-selling across its expanding product portfolio.
4. Strategic Partnerships and Acquisitions: ServiceNow is utilizing strategic partnerships and selective acquisitions to bolster its offerings and market reach. Recent examples include investments in Zaelab to accelerate CRM and AI-driven modernization for manufacturing and technology customers, and a significant investment in Genesys to enhance customer and employee experiences through AI-powered experience orchestration. Collaborations with companies like NVIDIA and FedEx Dataworks also highlight its commitment to expanding AI capabilities and market reach.

Share Repurchases

• In May 2023, ServiceNow initiated its first-ever share repurchase program, authorizing the purchase of up to $1.5 billion in common stock.
• In January 2025, the Board of Directors authorized an additional $3 billion for share repurchases, increasing the total authorized amount to $4.5 billion.
• ServiceNow has actively repurchased shares, including approximately 644,000 shares for $584 million in Q3 2025, with about $2 billion remaining available under the program.

Outbound Investments

• ServiceNow has maintained a robust acquisition strategy, with 2021 marking a record year with six acquisitions, and five acquisitions already completed in 2025, largely focused on AI companies and industry-specific tools.
• A significant outbound investment was the acquisition of Moveworks for approximately $2.85 billion in March 2025, aimed at enhancing AI capabilities.
• Other notable investments in 2025 include a $750 million investment in Genesys for AI-Powered Experience Orchestration (September 2025) and the acquisition of Data.World (July 2025) to bolster enterprise data intelligence and governance.

Capital Expenditures

• ServiceNow's capital expenditures have steadily increased, from $419.3 million in 2020 to $852 million in 2024.
• Expected capital expenditures for 2025 are projected to be approximately $897.3 million.
• A key focus of these expenditures, as highlighted by a $1.5 billion UK investment announced in January 2025, is on expanding data centers, office space, and AI skills programs.