ServiceNow (NOW)
Information Technology · $142B market cap · SEC CIK 0001373715
fundamentals score out of 100
Next reports on Oct 27, 2026, after the close, with analysts expecting $1.04 in earnings per share.
The case for NOW
- Revenue up 22.2% on the year.
- Generated $4.6B of free cash flow in FY2025, 34% of revenue.
- Holds more cash ($3.7B) than long-term debt ($1.5B).
- Has compounded revenue at 24.1% a year over five years.
- Gross margin of 75% absorbs cost shocks.
The case against
- Very expensive at 85.2× earnings. Years of growth are already in the price.
- Down 28.4% over the past year.
- Current liabilities exceed current assets (ratio 0.70).
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 29 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 66 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 51 |
| Momentumhow the price has behaved lately | 54 |
| Stabilityhow violently it moves, what it owes and what it pays you | 75 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 85.2× |
|---|---|
| Price / book | 8.18× |
| Price / sales | 9.7× |
| Revenue growth (YoY) | +22.2% |
| EPS growth (YoY) | +0.9% |
| Gross margin | 75% |
| Operating margin | 11% |
| Net margin | 11% |
| Return on equity | 14% |
| Debt / equity | 0.60× |
| Current ratio | 0.70 |
| Dividend yield | none |
| Beta | 0.96 |
| 52-week range | $81.24 – $194.73 |
| Position in that range | 49% of the way up |
| 3-month return | +44.9% |
| 1-year return | -28.4% |
Five years of financials, as filed
Pulled from ServiceNow's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $13.3B | $11.0B | $9.0B | $7.2B | $5.9B |
| Gross profit | $10.3B | $8.7B | $7.0B | $5.7B | $4.5B |
| Operating income | $1.8B | $1.4B | $762M | $355M | $257M |
| Net income | $1.7B | $1.4B | $1.7B | $325M | $230M |
| Operating cash flow | $5.4B | $4.3B | $3.4B | $2.7B | $2.2B |
| Capital expenditure | $868M | $852M | $694M | $550M | $392M |
| Total assets | $26.0B | $20.4B | $17.4B | $13.3B | $10.8B |
| Total liabilities | $13.1B | $10.8B | $9.8B | $8.3B | $7.1B |
| Shareholder equity | $13.0B | $9.6B | $7.6B | $5.0B | $3.7B |
| Cash | $3.7B | $2.3B | $1.9B | $1.5B | $1.7B |
| Long-term debt | $1.5B | — | — | — | — |
| Free cash flow | $4.6B | $3.4B | $2.7B | $2.2B | $1.8B |
| Gross margin | 77.5% | 79.2% | 78.6% | 78.3% | 77.1% |
| Operating margin | 13.7% | 12.4% | 8.5% | 4.9% | 4.4% |
| Net margin | 13.2% | 13.0% | 19.3% | 4.5% | 3.9% |
| Diluted shares | 1.0B | 1.0B | 1.0B | 1.0B | 1.0B |
Share count is up 3.0% over 4 years. Mild issuance. Counts are restated for stock splits so the years compare.
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
- Risks Related to Our Ability to Grow Our Business
- Risks Related to the Operation of Our Business
- Risks Related to the Financial Performance or Financial Position of Our Business
- Risks Related to General Economic Conditions
- Risks Related to Ownership of Our Common Stock
- 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