Freshworks vs ServiceNow: Revenue, Profit and Business Model
Freshworks reported $838.8M of revenue in FY2025 and $183.7M of net income. ServiceNow reported $13.3B of revenue in FY2026 and $1.7B of net income.
Latest financial snapshot
Freshworks
- Latest revenue
- $838.8M (FY2025)
- Net income
- $183.7M
- Net margin
- 21.9%
- Revenue growth
- +30.2% a year, FY2019–FY2025
ServiceNow
- Latest revenue
- $13.3B (FY2026)
- Net income
- $1.7B
- Net margin
- 13.2%
- Revenue growth
- +25.3% a year, FY2016–FY2026
Financial summary
Freshworks
Freshworks grew revenue from $172.4 million in 2019 to $838.8 million in 2025. Losses peaked at a $232 million net loss in 2022, then narrowed as the company cut costs and slowed hiring. In 2025 it posted GAAP operating income of $13.2 million (versus a $138.6 million loss in 2024), non-GAAP operating income of $178.0 million, and $242.4 million in operating cash flow; GAAP net income of about $184 million was boosted by a fourth-quarter tax benefit. Cash and marketable securities were $843.7 million at year-end 2025. In Q2 2026 revenue rose 16% to $237.4 million with a 24% non-GAAP operating margin.
ServiceNow
ServiceNow grows by landing in IT and expanding into more departments. Revenue rose from $1.39 billion in 2016 to $13.278 billion in 2025, and the company has been GAAP profitable since 2019 apart from a small 2018 loss. 2025 brought $1.824 billion in GAAP operating income, $1.748 billion in net income and $4.636 billion in free cash flow. Growth sped up in 2026: Q2 2026 subscription revenue rose 24.5% to $3.877 billion, helped by the Armis deal, and management raised its full-year subscription outlook. In January 2026 the board added $5 billion to the share buyback program.
Revenue and profit by year
Freshworks
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $838.8M | $183.7M | 21.9% | +16.4% | Source |
| FY2024 | $720.4M | -$95.4M | -13.2% | +20.8% | Source |
| FY2023 | $596.4M | -$137.4M | -23.0% | +19.8% | Source |
| FY2022 | $498M | -$232.1M | -46.6% | +34.2% | Source |
| FY2021 | $371M | -$192M | -51.7% | +48.6% | Source |
| FY2020 | $249.7M | -$57.3M | -22.9% | +44.8% | Source |
| FY2019 | $172.4M | -$31.1M | -18.1% | — | Source |
ServiceNow
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $13.3B | $1.7B | 13.2% | +0.0% | |
| FY2025 | $13.3B | $1.7B | 13.2% | +20.9% | Source |
| FY2024 | $11B | $1.4B | 13.0% | +22.4% | Source |
| FY2023 | $9B | $1.7B | 19.3% | +23.8% | Source |
| FY2022 | $7.2B | $325M | 4.5% | +22.9% | Source |
| FY2021 | $5.9B | $230M | 3.9% | +30.5% | Source |
| FY2020 | $4.5B | $119M | 2.6% | +30.6% | Source |
| FY2019 | $3.5B | $626.7M | 18.1% | +32.6% | Source |
| FY2018 | $2.6B | -$26.7M | -1.0% | +35.0% | Source |
| FY2017 | $1.9B | -$116.8M | -6.0% | +39.0% | Source |
| FY2016 | $1.4B | -$414.2M | -29.8% | — | Source |
Where the revenue comes from
Freshworks
No segment breakdown is published.
ServiceNow
- Subscription revenue from the Now Platform (about 97% of 2025 revenue)
- Technology workflows: ITSM, ITOM, IT asset management
- Security and risk, including Armis and Veza
- Customer, CRM and industry workflows
- Employee workflows and Moveworks
- Creator workflows and App Engine
- Professional services and training
Business model and strategy
Freshworks
How it makes money
Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). Revenue comes from two segments: employee experience (Freshservice for IT service management, IT asset management via the 2024 Device42 acquisition, and service management for HR and facilities) and customer experience (Freshdesk ticketing, Freshchat messaging and Freshsales CRM).
Growth strategy
Under Dennis Woodside, Freshworks narrowed its focus to service software. It pushes Freshservice upmarket into mid-sized and larger enterprises, cross-sells IT asset management, sells Freddy AI add-ons into the installed base, and relies more on partners and resellers. In 2024 it de-emphasized standalone sales and marketing CRM products to concentrate investment on IT and customer service.
Competitive advantage
Freshworks' main advantage is a lower total cost of ownership: Freshservice and Freshdesk are designed to be configured by in-house admins in weeks rather than through multi-month integrator projects common with ServiceNow or Salesforce. A large engineering base in India keeps R&D costs lower than Silicon Valley peers, and a shared platform lets one vendor cover IT, HR and customer support desks.
ServiceNow
How it makes money
ServiceNow makes money by selling multi-year subscriptions to the Now Platform, its single cloud platform with a shared data model and CMDB. Subscription revenue was $12.883 billion of $13.278 billion in 2025 revenue, about 97%; the remainder is professional services and training.
Growth strategy
ServiceNow is growing on three fronts: selling more AI (Now Assist, AI agents, the Otto assistant and AI Control Tower), getting bigger in security and risk through Armis and Veza, and pushing CRM, customer service and industry workflows into accounts where it already runs IT.
Competitive advantage
ServiceNow's advantage comes from one codebase and one data model that spans IT, HR, customer service and security workflows. Once the CMDB and custom App Engine apps are in place, replacing the platform means rebuilding years of configuration, which supports high renewal rates. Scale also matters: 658 customers paid more than $5 million in annual contract value as of June 30, 2026.
Questions about Freshworks vs ServiceNow
Which company has higher revenue — Freshworks Inc. or ServiceNow, Inc.?
Freshworks Inc. reported $838.8M (FY2025), while ServiceNow, Inc. reported $13.3B (FY2026). By last reported revenue, ServiceNow, Inc. is the larger business, with Freshworks Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Freshworks Inc. vs ServiceNow, Inc.?
Freshworks Inc.'s market capitalisation stands at $3.3B, while ServiceNow, Inc.'s is $134.3B. ServiceNow, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Freshworks Inc..
Which is more financially efficient — Freshworks Inc. or ServiceNow, Inc.?
Freshworks Inc. generates $210k / employee in revenue per employee, while ServiceNow, Inc. generates $455k / employee. ServiceNow, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Freshworks Inc. and ServiceNow, Inc. make money?
Freshworks Inc. and ServiceNow, Inc. generate revenue in fundamentally different ways. Freshworks Inc.: Freshworks sells subscriptions, mostly priced per agent or per user, across tiered plans (Growth, Pro, Enterprise). ServiceNow, Inc.: ServiceNow makes money by selling multi-year subscriptions to the Now Platform, its single cloud platform with a shared data model and CMDB.
Which company is valued higher relative to revenue — Freshworks Inc. or ServiceNow, Inc.?
On a price-to-sales (P/S) basis, Freshworks Inc. trades at 3.9x P/S and ServiceNow, Inc. at 10.1x P/S. ServiceNow, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Freshworks Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Freshworks Inc. bigger than ServiceNow, Inc.?
By last reported revenue, ServiceNow, Inc. ($13.3B (FY2026)) is the larger company compared to Freshworks Inc. ($838.8M (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Freshworks vs ServiceNow overview