# ServiceNow (NOW) Forecast Calculator

Interactive five-year financial forecast and DCF for ServiceNow. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/servicenow/forecast
- Industry: Technology
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 3460000000 | 971000000 | 294000000 | 626698000 |
| 2022 | 4519000000 | 1367000000 | 535000000 | 119000000 |
| 2023 | 5896000000 | 1799000000 | 729000000 | 230000000 |
| 2024 | 7245000000 | 2173000000 | 788000000 | 325000000 |
| 2025 | 8971000000 | 2704000000 | 1324000000 | 1731000000 |

## Frequently asked questions

### What does ServiceNow do?

ServiceNow operates a cloud-based AI platform that automates and unifies enterprise workflows across IT, human resources, customer service, and creator channels. The company helps global enterprises digitize fragmented operations into coordinated workflows using its proprietary Now Platform and generative AI suite, Now Assist.

### How does ServiceNow generate revenue?

ServiceNow primarily generates revenue from Subscription services, which account for approximately 97% of its total revenue. This highly recurring revenue comes from multi-year enterprise contracts under its asset-light Software-as-a-Service (SaaS) business model.

### What are the key capital expenditure drivers for ServiceNow?

ServiceNow's capital expenditure is largely driven by the expansion of its AI compute infrastructure and the capitalization of internal-use software development. Roughly 60% of its capex is growth-oriented, focused on data center expansion to support AI workloads.

### What is the purpose of the ServiceNow financial model?

The ServiceNow financial model evaluates the company's equity valuation and its free cash flow generation capacity. Its purpose is to determine whether ServiceNow's premium market multiple is justified by its transition to AI-driven consumption pricing and sustained current remaining performance obligations (cRPO) growth.

### Can I download an Excel financial model for ServiceNow?

Yes, an Excel financial model for ServiceNow (NOW) is available for download. This general corporate model provides a forecast horizon from FY2026 through FY2030, incorporating key assumptions for revenue growth and operational metrics.

### How does ServiceNow's business model impact its working capital?

ServiceNow operates with a massive negative working capital advantage due to its business model. Customers typically pay annually in advance, creating a large deferred revenue liability that effectively funds the company's operations and growth.