Digital workflow platforms don’t get much bigger than ServiceNow. From Fortune 500 companies to the federal government, it has a myriad of business segments and is growing fast. In July’s second quarter earnings report, subscription revenues jumped 22.5% YoY to just over $3.1 billion; it also lifted its guidance to account for AI-powered growth.
ServiceNow is using that momentum to expand in markets like Brazil, Japan, India, and Saudi Arabia under the leadership of Paul Fipps, who was named president of global customer operations in April. Fipps has been with the company for over four years, previously serving as EVP of worldwide sales.
“We have an industry-first focus, and the way we think about that is: We go to market in six key industries, but within that there’s 36 subverticals inside those industries,” Fipps said. “For us to be able to take our products and really explain the ROI and the benefits and the value to our customers inside those industries has helped us grow.”
Global growth
ServiceNow is not just looking at individual countries for growth, but at entire regions. “The Middle East is a really big growth area for us,” Fipps said.
He said the plan is to expand by growing its partnerships. This includes collaborations with global systems integrators like Accenture, Deloitte, and Cognizant and hyperscalers like Microsoft Azure, AWS, and Google Cloud that embed the ServiceNow platform into their systems.
“We have a huge partner ecosystem, both with the global services providers, but also with the hyperscalers,” Fipps said. “That’s helping us expand into those markets and engage those customers in unique ways.”
Public sector push
Fipps says along with international expansion, ServiceNow’s global public sector business is the other big focus. “Those are two areas where we’re actually going bigger faster, because customers are pulling us into those parts of the world [and] leveraging the platform,” he said.
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ServiceNow’s business with the US federal government is long established; according to its 2024 annual earnings report, 11% of revenues came from just one federal customer. This year there was great speculation over the impact of the Trump administration’s efficiency drive.
The deals haven’t dried up however. At the beginning of this month ServiceNow announced an agreement with the General Services Administration to power its AI modernization push.
AI, Now
AI is an undeniable component of ServiceNow’s value proposition, and the company is considered a leading player in the rapidly developing world of agentic AI. The launch of Now Assist in 2023 was a landmark moment, and the company is reportedly eyeing $1 billion in revenue for the product by 2026.
Unsurprisingly, a company driving so much growth from AI is also leveraging it internally.
“We’ve developed agents inside of ServiceNow on the sales side to help think about the next best actions for our customers,” Fipps said. According to Fipps, the AI agent is helping cut the seller prep time by as much as 50% and is driving roughly $350 million in value.