ServiceNow

Pricing leverage stems from mission‑critical positioning and expansion into higher value SKUs. Subscription gross margins around 80 to 85 percent and sustained 20 percent‑plus subscription growth indicate healthy willingness to pay.

The company is packaging genAI and agentic capabilities into Pro Plus and Enterprise Plus, and expects to monetize AI usage more directly over time. The pivot to include consumption elements for AI and data introduces some variability near term but should increase long‑run monetization per workflow as usage grows.

The counterforce is competitive bundling and procurement scrutiny at scale, especially in front‑office adjacencies and public sector, which can moderate list price increases. Net, pricing power is strong but not unbounded.