ServiceNow Continues to Grow Its Revenue, But Can It Catch Up to Microsoft?

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?

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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.