In December, ServiceNow completed a 5-for-1 forward stock split, reducing its per-share trading level by 80% and making individual shares more accessible to retail investors. Historically, high share prices have put Enterprise SaaS stocks out of reach for smaller accounts; the split brings ServiceNow into a similar price band as many of its large-cap peers, potentially broadening its shareholder base and improving liquidity in the secondary market.

ServiceNow reported third-quarter GAAP revenue of $3.4 billion, up 22% year-over-year, driven primarily by subscription sales, which grew 21.5% and exceeded the high end of management’s guidance range. The company now serves approximately 8,400 global customers, including over 85% of the Fortune 500, underscoring its entrenched position in large-enterprise digital workflow automation. Gross margin remains healthy at just over 78%, reflecting the high-value, recurring nature of its cloud-based offerings.

ServiceNow’s position as an AI orchestration hub is strengthening as enterprises pursue productivity gains from machine learning and automation. CEO Bill McDermott has described the company’s suite of real-time AI control tower products as “essential” for integrating best-of-breed AI tools into existing workflows. As of the end of Q3, AI-related bookings were on track to generate more than $500 million in annual contract value in 2025, setting the stage for the $1 billion AI ARR target in 2026. Industry forecasts project enterprise IT spending on AI to exceed $1.3 trillion by 2029, underscoring the large addressable market ServiceNow aims to capture.