ServiceNow (NOW)

Information Technology · $107B market cap · SEC CIK 0001373715

Next reports on Jan 26, 2027, after the close, with analysts expecting $1.09 in earnings per share.

52-week range $81.24 to $175.00. 43% below its 52-week high and 23% above its low.

The case for NOW

• Revenue up 21.8% on the year.
• Generated $4.6B of free cash flow in FY2025, 34% of revenue.
• Has compounded revenue at 24.1% a year over five years.
• Gross margin of 73% absorbs cost shocks.

The case against

• Expensive for its growth: 73.8× earnings, where 25%+ a year of growth would justify about 46×.
• Down 40.4% over the past year.
• Earnings per share fell 16.0%.
• Current liabilities exceed current assets (ratio 0.72).
• Near the bottom of its 52-week range, 43% below the high. Falling prices usually have a reason; find it first.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from ServiceNow's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What ServiceNow says it does

Overview ServiceNow delivers solutions that help public and private organizations govern, secure and manage artificial intelligence and digitalize and streamline workflows to drive collaboration, productivity and better experiences across the enterprise. We offer an innovative suite of products, including AI-powered applications, and services designed to automate workflows, integrate systems and empower employees, regardless of existing systems, cloud environments or collaboration tools. At the core of these solutions is the ServiceNow AI Platform, a robust, cloud-based platform that facilitates comprehensive delivery of seamless workflows and drives digital transformation across all departments and personas within an organization. With the emergence of artificial intelligence, organizations are under pressure from their stakeholders to accelerate growth and achieve unprecedented productivity improvements. To meet these demands, they…

Risk factors NOW lists in its 10-K

• This summary provides an overview of the risks we face and should not be considered a substitute for the more fulsome risk factors discussed immediately following this summary
• Laws, regulations and customer expectations regarding the use, storage and movement of data may restrict our ability to continue to optimize our platform
• A failure to innovate and adapt how we offer our products in response to rapidly evolving technological changes and in the midst of an intensely competitive market may harm our competitive position and business prospects
• We may not successfully increase our penetration of international markets or manage risks associated with foreign markets
• Incorporating AI technology into our offerings may result in operational, legal, regulatory, ethical and other challenges
• We rely on our network of partners for an increasing portion of our revenues, and if these partners fail to perform, our business may be harmed
• Doing business with the public sector and heavily-regulated entities subjects us to risks related to government procurement processes, regulations and contracting requirements
• Our customer deals are becoming more complex, which tend to involve longer, more expensive sales cycles, increased pricing pressure, and implementation and configuration challenges
• Actual or perceived cybersecurity events experienced by us or our third-party service providers may create the perception that our platform is not secure, and we may lose customers or incur significant liabilities
• We may lose key members of our management team or qualified employees or may not be able to attract and retain the employees we need
• Disruptions or defects in our services could damage our customers’ businesses, subject us to substantial liability and harm our business
• Delays in improving our information systems and processes could interfere with our ability to support our existing and growing base of customers and employees as we scale
• We may not be able to protect or enforce our IP rights
• Our use of open-source software could harm our ability to sell our products and services and subject us to possible litigation
• Our failure or perceived failure to achieve our corporate sustainability goals or maintain corporate sustainability practices that meet evolving stakeholder expectations could adversely affect us
• We may face natural disasters, including climate change, and other events beyond our control
• Because we generally recognize revenues from our subscription services over the subscription term, a decrease in new subscriptions or renewals may not be immediately reflected in our operating results
• As our business grows, we expect our revenue growth rate to decline over the long term
• Changes in our effective tax rate or disallowance of our tax positions may adversely affect our business
• We may be adversely affected by our debt service obligations
• Our industry and business may be harmed by global economic and political conditions
• We may be harmed by foreign currency exchange rate fluctuations
• Our stock price is likely to continue to be volatile
• Provisions in our governing documents or Delaware law might discourage, delay or prevent a change of control or changes in our management and, therefore, depress our stock price

Filings

Other Information Technology companies