ServiceNow organizes its offerings around four workflow pillars: Technology, Core Business, CRM & Industry, and Creator, all delivered through a single data model on the Now Platform - pushing beyond traditional ITSM.

Core business workflows now extend into finance, procurement, HR, legal, and facilities. CRM and industry workflows are becoming alternatives in customer service, field operations, telecom, healthcare, and public sector use cases. Creator workflows, powered by low-code tooling and automation engines, are increasingly adopted by non-technical users.

Now Assist, the company’s GenAI and agentic AI suite, continues to outperform internal expectations, with strong adoption across ITSM, ITOM, security operations, HR, and creator workflows. It allows customers to experiment with AI while remaining compliant, auditable, and secure - a growing concern at large enterprises. ServiceNow benefits from incremental ACV through premium features and operating leverage as automation reduces internal service costs.

ServiceNow’s Q3 2025 subscription business grew 21.5% YoY to $3.3 billion (outpacing both guidance and market expectations).

Among its customers, there is major players such as Nvidia, CVS, BHP, Johnson & Johnson, and Adobe:

The remaining performance obligations (RPO), which surged 24% YoY to $24.3 billion, signals robust long-term contract momentum, considering the current remaining performance obligations (cRPO) hit $11.35 billion, up 21%. Non-GAAP subscription gross margins expanded to 83%, up from 81.5% in Q3 2024, while non-GAAP operating margins reached 33.5%, allowing ServiceNow to raise its full-year FCFmargin guidance to 34%.

Despite aggressive investments - including $750 million in Genesys and a $1.02 billion strategic investment spree in Q3 - the company ended the quarter with $2.7 billion in cash and equivalents and generated $813 million in operating cash flow. Shareholder returns remained a priority, with $584 million deployed toward share repurchases in Q3 alone, leaving $2 billion still authorized under the program. The five-for-one stock split, pending shareholder approval, signals confidence in sustained growth and accessibility for retail investors despite the $1.2 billion drop in marketable securities and a $692 million accounts receivable drawdown YoY. With 103 transactions over $1 million in net new ACV and 553 customers generating over $5 million in ACV, the group it’s deepening its footprint in enterprise AI. 

North America remains the dominant revenue contributor, though international markets continue to outgrow the core, targeting scale markets such as Germany, Japan, the UK, France, Canada, and Australia, while building earlier-stage momentum in India, Brazil, Mexico, Saudi Arabia, and ASEAN regions. Government and public sector adoption, particularly in the U.S. and Europe, is emerging as a durable second engine despite near-term budget noise.

ServiceNow trades at a premium that assumes continued 20%+ subscription growth alongside expanding margins deep into the decade. Any deceleration in large-deal momentum, AI monetization, or public-sector spending could compress multiples quickly. Operationally, cybersecurity exposure, reliance on hyperscaler infrastructure, and competitive pressure from Salesforce, Microsoft, and vertical-specific vendors remain persistent, though manageable.

ServiceNow today is best understood as infrastructure, not application software. It sits at the intersection of workflows, data, and AI, with scale, margins, and customer trust that few peers can replicate. Growth is increasingly efficient, visibility remains high, and AI is enhancing the platform’s economic profile. While valuation leaves little room for disappointment, the underlying business continues to justify its position as one of the highest-quality compounders in enterprise software.