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NOW
NOWEnterprise Software

ServiceNow, Inc.

NYSE · Enterprise Workflow Automation

Role

The Enterprise OS

"The Digital Transformation Engine"

ServiceNow serves over 85% of the Fortune 500 — it is the operating system for enterprise digital transformation, with $28.2B in contracted future revenue.

Investment Thesis

A dominant force in the enterprise software market, providing a comprehensive cloud platform to automate IT, business, and customer workflows. With strong, consistent revenue growth and a large, diverse customer base (including over 85% of the Fortune 500), it is well-positioned to capitalize on the ongoing trend of digital transformation.

The Analogy

The enterprise operating system. Just as Windows runs on personal computers, ServiceNow's Now Platform runs the workflows of the world's largest organizations.

Key Metrics

Total Revenue
$13.3BFY2025
Revenue Growth
+21%YoY
Subscription Revenue
$12.9BFY2025
Total RPO
$28.2BContracted future revenue
Current RPO Growth
+25%YoY
Fortune 500 Coverage
85%+Of Fortune 500 are customers

Revenue History (USD Billions)

202320242025$0B$4B$8B$12B$16B

Competitive Advantages

  • +Comprehensive and integrated Now Platform covering IT, HR, customer service, and security
  • +Strong brand reputation and extensive partner ecosystem
  • +85%+ of Fortune 500 as customers — extremely high retention and switching costs
  • +$28.2B in remaining performance obligations (contracted future revenue)
  • +Consistent 20%+ revenue growth with high subscription revenue mix

Key Risks

  • −Competition from Microsoft, IBM, and other large cloud providers
  • −High valuation premium reflecting growth expectations
  • −Potential slowdown in enterprise IT spending during economic downturns
  • −AI disruption risk: agentic coding tools may allow enterprises to build custom workflow automation in-house, eroding ServiceNow's pricing power and renewal rates (see: 2028 Global Intelligence Crisis scenario)
  • −Reflexive headcount risk: when enterprise clients cut staff via AI, they mechanically cancel ServiceNow seat licenses — the company's own customers adopting AI reduces its revenue base
Bear Case ReadingCitrini Research · Feb 22, 2026

The 2028 Global Intelligence Crisis

"ServiceNow net new ACV growth decelerates to 14% from 23%; announces 15% workforce reduction and 'Structural Efficiency Program'; shares fall 18%"

A scenario analysis modeling how AI's success could paradoxically devastate enterprise SaaS. ServiceNow is explicitly named as an early casualty — disrupted by better workflow automation while its own customers' AI-driven headcount cuts mechanically destroy its revenue base.

Read Full Article →
Stable Compounder

Stable Growth Compounder — a core enterprise software holding with consistent execution

Research Files on Record

📄 ServiceNow: A Comprehensive Overview
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