ServiceNow builds cloud software that helps large organizations manage work across IT, customer service, human resources, and security. Its applications handle tasks such as resolving support tickets, onboarding employees, and responding to customer requests. Businesses configure forms, approval steps, and automation through visual tools on a common platform, connecting existing systems and using AI to assist workers or carry out tasks. The company sells subscriptions to its applications and platform, with professional services helping customers implement and use the software. Founded in 2004, ServiceNow is headquartered in Santa Clara, California.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
2004
See people who can refer or advise you
Help us improve and share your feedback! Did you find this helpful?
Generous family leave
Flexible PTO
Matched Donations
Retirement benefits
Annual learning stipends
Paid volunteer time
Palantir Technologies trades at 139 times trailing free cash flow compared to ServiceNow's 31 times, but investors are paying the premium for faster AI-driven growth. Palantir's June-quarter revenue surged 93% to $1.94 billion, with GAAP operating income reaching $912 million, about 47% of revenue. ServiceNow's second-quarter subscription revenue rose 24.5% to $3.88 billion. Current remaining performance obligations increased 21% to $13.2 billion. Operating cash flow reached $587 million, with free cash flow at $473 million after property purchases. Institutional ownership data shows ServiceNow's holder count increased to 115 from 108 in Q1, whilst Palantir's fell to 86 from 96. Palantir had 60.18 million shares short on 15 September, approximately 2.8% of float. Both companies offer different enterprise automation approaches, with the valuation gap reflecting Palantir's exceptional growth trajectory.
ServiceNow and UiPath both offer AI-powered automation platforms, but differ in scale and growth. ServiceNow reported revenue of nearly $13.3 billion for fiscal 2025, up 20.9%, with net income of $1.75 billion. UiPath posted revenue of $1.6 billion for fiscal 2026, up 12.7%, achieving its first full-year GAAP profitability with net income of $282.3 million. ServiceNow's AI products surpassed $1 billion in annual contract value in Q2. However, its $7.75 billion Armis acquisition raised total debt to $7.5 billion by June 2026. UiPath carries no debt and maintains a current ratio of 2.5x, but faces slower growth with flat customer count year-over-year. ServiceNow trades at 33.9x forward P/E versus UiPath's 17.1x, reflecting different growth trajectories and market positioning.
ServiceNow shares rose 2.5% to $137.40 in premarket trading as the company co-hosted the Fortune AIQ Summit at the New York Stock Exchange, an event focused on deploying and scaling artificial intelligence within businesses. The gains came alongside an 18% rise in partner Accenture's shares following its latest financial results. Several analysts recently increased ServiceNow price targets, with Deutsche Bank raising its target to $155 from $135 and Cantor Fitzgerald lifting its target to $174. ServiceNow previously reported second-quarter subscription revenue of $3.877 billion, up 24.5% year-on-year. The company raised its full-year 2026 subscription revenue guidance to between $15.76 billion and $15.78 billion. The broader US equity market also traded higher, with the S&P 500 gaining 0.25% and the Nasdaq advancing 0.5%.
ServiceNow has launched Flow, a conversational AI-native service desk that can be deployed instantly and operational within a day. The standalone product enables teams to automate workflows through natural language in existing chat channels like Slack and Teams, eliminating the need for separate portals or ticketing systems. Flow allows users to automate workflows with a single click after resolving a request correctly, removing repetitive tasks such as password resets and access requests. The service requires no implementation project or infrastructure setup. "Flow is for companies that want to work in a completely new way," said Amit Zavery, ServiceNow's president and chief product officer. The platform handles support conversations natively within chat channels, automatically closing repetitive requests or escalating them when necessary.
Oppenheimer analysts say AI in software has moved beyond experimentation, with companies now required to demonstrate measurable returns on investment. AI is becoming a recurring operating expense, with chief financial officers evaluating investments alongside labour costs. The firm says system-of-record vendors and businesses with seat-plus-consumption pricing models are best positioned to benefit. These models offer protection against disruption and the clearest path to AI-driven growth. Oppenheimer's top picks include Microsoft Corporation, citing accelerating platform demand and over $1 billion in AI-related revenue. ServiceNow is highlighted for its exposure to automation and security tailwinds, also exceeding $1 billion in AI revenue. Braze is noted as a system-of-record for customer engagement with durable competitive advantages.