Since its IPO in 2012, ServiceNow has grown from a burgeoning software company priced just under $25 per share to an industry leader with a market cap of more than $76 billion. The company’s cloud-based digital workflow management platform is among the most popular of its kind, and demand for these services has rocketed alongside ServiceNow’s rise. But does it have the potential — or momentum — to catch up to its biggest rival, Microsoft, by 2030?
ServiceNow’s customer base has grown by more than 10 times in the last decade, and its software is currently in use by roughly 80% of the Fortune 500. It once drew revenue of less than $650 million; in 2021, revenue reached $5.9 billion, representing a compound annual growth rate (CAGR) of 42.5%. Over the same period, Microsoft achieved a modest CAGR of 11%, still growing revenue from about $70 billion to just under $200 billion.
Of course, with its 20-plus-year head start, Microsoft appears to be a beast that can’t be toppled. ServiceNow expects its revenue to grow at a CAGR of 22% or more by 2026, which could push it to $16 billion. While it may never catch up to the Seattle software titan, ServiceNow seems poised to remain a major player.