ServiceNow, Inc. (NOW) Stock Analysis

ServiceNow’s principal competitive advantage lies in its unified cloud platform for workflow automation, which integrates IT, HR, customer service, and other business functions. Unlike point-solution rivals, ServiceNow offers a single architecture and data model, enabling customers to consolidate disparate systems and reduce operational complexity. This “platform effect” creates high switching costs and supports cross-selling: 86% of new annual contract value in 2024 came from multi-product deals, and renewal rates remain at 98%.

The company’s scale is notable: it executes over 60 billion enterprise workflows annually and serves more than 8,400 customers, including 85% of the Fortune 500. ServiceNow’s AI capabilities—particularly its agentic AI and workflow automation—are increasingly embedded in customer operations, differentiating it from legacy vendors like SAP and Oracle, which remain more siloed, and from Salesforce, which is more CRM-centric.

ServiceNow’s customer satisfaction is reflected in industry-leading retention and rapid expansion within accounts; the number of customers with over $5 million in annual contract value grew 19.5% year-over-year to 528 as of Q2 2025. The company’s culture emphasizes innovation and customer obsession, supporting continuous product development and high employee engagement.

Risks include intensifying competition from Microsoft, Salesforce, and Workday, all of which are investing heavily in AI and workflow tools. However, ServiceNow’s breadth, integration, and execution track record provide a durable edge in the enterprise automation market.