ServiceNow, Inc.

ServiceNow generated $12.84B in FY2025 subscription revenue (97% of total), with a renewal rate sustained at approximately 98% across every reported quarter through Q2 2025. Current RPO reached $12.85B at Q4 2025 close, providing roughly 12 months of contracted revenue visibility.

ServiceNow has expanded meaningfully beyond its ITSM origins into HR service delivery, customer service management, security operations, field service, and AI-powered workflow orchestration. Revenue diversification across workflow categories is genuine, though the end-market buyer (enterprise IT and operations leadership) is largely the same across products, introducing some underlying demand correlation.

International operations contributed 37% of total revenues in FY2025, with the U.S. accounting for the remaining 63%. Meaningful presence in Europe and Asia-Pacific exists, but the majority of revenue remains dependent on U.S. enterprise IT budgets and, for a growing portion, U.S. federal government contracts.

Free cash flow margin expanded from roughly 27% in FY2021 to 34.5% in FY2025, including through the 2022 inflationary shock, reflecting the low marginal cost of serving incremental subscription revenue on a shared cloud platform. Non-GAAP operating margin guidance for FY2026 is 32%, up 100 basis points year over year, consistent with the multi-year operating leverage trajectory.

Subscription revenue constitutes 97% of total revenue (FY2025), derived from multi-year enterprise contracts covering mission-critical IT service management, HR workflows, and security operations that large enterprises cannot interrupt without significant operational risk. The land-and-expand model, with 75% of customers using four or more products, deepens mission-criticality as each added module increases operational interdependence.