ServiceNow (NOW)

Workflow automation — digitizes & automates IT/employee/customer workflows (the work-orchestration layer)

AI exposure 8% — derived from reported segment revenue, not asserted.

Where it sits

Software Stack → Enterprise & Business Software · figures rebased to Q2 2026, reported 2026-07-22

Now Platform subscriptions — IT workflows (ITSM/ITOM), employee, customer, security & AI workflows… leads 2 businesses in this sub-tier that together are 100% of revenue, so Enterprise & Business Software is effectively the whole company rather than one leg of it.

Reported segments

• Subscription — 97.2% of revenue
• Professional Services & Other — 2.8% of revenue

ServiceNow ($3.987B Q2 2026). Subscription 97.2% ($3.877B, +24.5% YoY, +23% constant currency) = primary B5 Enterprise & Business Software — the Now Platform across IT, employee, customer and security workflows; Professional Services & Other 2.8% ($110M, +8.5%). Operating income fell 54.7% YoY on AI investment, so the AI push is visible in the cost line before the revenue line.

How the 8% is built

• Subscription — 97.2% of revenue × 8% AI-driven (disclosed). Now Assist and the agentic workflow products are a growing but small share of a large conventional workflow-automation base
• Professional Services & Other — 2.8% of revenue × 5% AI-driven (disclosed). Implementation on the same platform

Investment read

Moat. Workflow-platform lock-in (Now Platform) + ~98% renewal + the system-of-action position across IT/employee/customer workflows; deep switching costs.

Bottleneck / pricing power. Strong pricing power (mission-critical workflow lock-in + AI upsell via Now Assist); the agentic-AI-workflow wave is a direct expansion vector.

Role in the AI stack. The enterprise workflow-orchestration (+ AI-agent) layer.

Connected companies

• Salesforce (CRM) — NOW competes with: Workflow automation + service (ServiceNow vs Salesforce Service/Fusion Service)
• Oracle (ORCL) — NOW competes with: Limited overlap — ServiceNow ITSM/workflow only partly overlaps Oracle Fusion Service in customer service; Oracle is weak in ITSM
• Microsoft (MSFT) — NOW competes with: ITSM/workflow — ServiceNow (category leader) vs Microsoft Power Platform/System Center (partial, Microsoft-centric orgs)
• SAP SE (SAP) — NOW competes with: Adjacent/emerging rivalry — ServiceNow (workflow/ITSM) vs SAP (ERP) overlap only at the edges, not core system-of-record competitors
• Pegasystems (PEGA) — NOW competes with: workflow/BPM — ServiceNow vs Pega
• Nebius Group (NBIS) — NOW is supplied by: AI cloud capacity — ServiceNow reported among the enterprise AI adopters buying Nebius compute in 2026; press-reported, not company-confirmed

Others in Enterprise & Business Software

• Salesforce (CRM)
• SAP SE (SAP)
• Workday (WDAY)
• Oracle (ORCL)
• Intuit (INTU)
• Pegasystems (PEGA)
• HubSpot (HUBS)
• Twilio (TWLO)
• UiPath (PATH)
• Veeva Systems (VEEV)
• Adobe (ADBE)
• Accenture (ACN)

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