A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
ServiceNow, Inc.
NOW
$517.0B
Mkt Cap
$98.78
+7.44%
ServiceNow, Inc. (NOW) has a current P/E ratio of 59.1, compared to its historical median P/E of 90.2. The stock is currently considered Cheap based on its historical valuation range.
ServiceNow, Inc. (NOW) has a 5-year average return on invested capital (ROIC) of 62.3%. This indicates strong capital allocation and a potential competitive advantage.
ServiceNow, Inc. (NOW) has a market capitalization of $101.9B. It is classified as a large-cap stock.
ServiceNow, Inc. (NOW) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 3.70%.
Based on historical P/E analysis, ServiceNow, Inc. (NOW) appears cheap. The current P/E of 59.1 is 34% below its historical median of 90.2. The estimated fair value CAGR (P/E method) is 42.8%.
ServiceNow, Inc. (NOW) operates in the Services-Prepackaged Software industry, within the Technology sector.
ServiceNow, Inc. (NOW) reported annual revenue of $13.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
ServiceNow delivers an AI-powered cloud platform that helps organizations govern, secure, and manage artificial intelligence while automating and streamlining workflows across the enterprise. The company's one-platform architecture integrates AI capabilities (Now Assist), a unified data fabric (Workflow Data Fabric and RaptorDB), and workflow orchestration to connect people, processes, and data across departments and systems. ServiceNow's products span four areas—Technology (IT operations, asset management, security), Core Business (HR, finance, legal, supply chain), CRM and Industry (customer service, field service, sales), and Creator and Other (low-code development, data privacy)—serving diverse industries and geographies through a subscription-based SaaS model. The company's competitive moat derives from two decades of enterprise customer relationships, deep operational process expertise across industries and functions, and a platform architecture that bridges AI-generated insights to execution systems where business processes actually operate, enabling customers to deploy AI-enhanced workflows without replacing existing infrastructure. ServiceNow serves large enterprises globally, with particular strength in federal government, transportation and logistics, retail, and other verticals, generating revenue through subscription contracts with significant expansion opportunities as customers adopt AI capabilities and increase their use of Now Assist products.
【AI-driven platform acceleration】 Management expects continued strong momentum from Now Assist adoption and AI-powered workflow automation, with the company tracking to exceed its $1 billion ACV target for 2026 and seeing broad-based demand across all workflow categories. The Armis acquisition, which closed earlier than expected, is expected to expand the total addressable market and accelerate subscription revenue growth, though near-term margin headwinds are anticipated as the business integrates while underlying AI efficiencies normalize margin expansion in 2027 and beyond. Management remains confident in guidance despite geopolitical headwinds, particularly in the Middle East, and continues to invest in platform innovation combining agentic AI, workflow orchestration, security, and data fabric capabilities. The company is leveraging internal AI efficiencies (Now on Now) to drive operational leverage and cost savings, which are expected to support profitability expansion as the business scales.
| Metric | Target | Period |
|---|---|---|
| Subscription revenue | $15.735 billion–$15.775 billion | FY2026 |
| Subscription revenue growth (constant currency) | 20.5%–21% | FY2026 |
| Subscription gross margin | 81.5% | FY2026 |
| Operating margin | 31.5% | FY2026 |
| Free cash flow margin | 35% | FY2026 |
Subscription revenue (FY2026): “for 2026, we are raising our subscription revenues by $205 million at the midpoint to $15.735 billion-$15.775 billion, representing 20.5%-21% year-over-year growth on a constant currency basis”
Subscription revenue growth (constant currency) (FY2026): “representing 20.5%-21% year-over-year growth on a constant currency basis”
Subscription gross margin (FY2026): “We now expect subscription gross margin of 81.5%”
Operating margin (FY2026): “We now expect subscription gross margin of 81.5% and operating margin of 31.5%”
Free cash flow margin (FY2026): “We expect free cash flow margin of 35%”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 14.0B | 13.3B | 11.0B | 9.0B | 7.2B | 5.9B |
| Net Income | 1.8B | 1.7B | 1.4B | 1.7B | 325M | 230M |
| EPS | $5.11 | $0.33 | $0.27 | $1.69 | $0.32 | $0.23 |
| Free Cash Flow | 4.6B | 4.6B | 3.4B | 2.7B | 2.2B | 1.8B |
| ROIC | 26.1% | 43.1% | 73.3% | 78.0% | 52.0% | 64.9% |
| Gross Margin | 76.6% | 77.5% | 79.2% | 78.6% | 78.3% | 77.1% |
| Debt/Equity | 0.13 | 0.19 | 0.24 | 0.30 | 0.44 | 0.60 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.9B | 1.8B | 1.4B | 762M | 355M | 257M |
| Operating Margin | 13.4% | 13.7% | 12.4% | 8.5% | 4.9% | 4.4% |
| ROE | 15.0% | 15.5% | 16.5% | 27.3% | 7.4% | 7.0% |
| Shares Outstanding | 1,031M | 5,234M | 5,201M | 1,024M | 1,016M | 1,018M |
ServiceNow, Inc. passes 9 of 9 quality checks, indicating strong fundamentals.
ServiceNow, Inc. trades at 59.1x trailing earnings, compared to its 15-year median P/E of 90.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 22.6x vs a median of 54.7x. The company's 5-year average ROIC is 62.3% with a gross margin of 78.1%. Total shareholder yield (buybacks) is 3.7%. At current prices, the estimated annualized return to fair value is +26.6%.
ServiceNow, Inc. (NOW) has a net profit margin of 13.2%. This is a healthy margin.
ServiceNow, Inc. (NOW) generated $4.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
ServiceNow, Inc. (NOW) has a debt-to-equity ratio of 0.19. This indicates a conservatively financed balance sheet.
ServiceNow, Inc. (NOW) reported earnings per share (EPS) of $0.33 in its most recent fiscal year.
ServiceNow, Inc. (NOW) has a return on equity (ROE) of 15.5%. This indicates the company generates strong returns for shareholders.
ServiceNow, Inc. (NOW) has a 5-year average gross margin of 78.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 16 years of financial data for ServiceNow, Inc. (NOW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
ServiceNow, Inc. (NOW) has a book value per share of $2.48, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong momentum from Now Assist adoption and AI-powered workflow automation, with the company tracking to exceed its $1 billion ACV target for 2026 and seeing broad-based demand across all workflow categories. The Armis acquisition, which closed earlier than expected, is expected to expand the total addressable market and accelerate subscription revenue growth, though near-term margin headwinds are anticipated as the business integrates while underlying AI efficiencies normalize margin expansion in 2027 and beyond. Management remains confident in guidance despite geopolitical headwinds, particularly in the Middle East, and continues to invest in platform innovation combining agentic AI, workflow orchestration, security, and data fabric capabilities. The company is leveraging internal AI efficiencies (Now on Now) to drive operational leverage and cost savings, which are expected to support profitability expansion as the business scales.
Based on recent SEC filings and earnings calls, ServiceNow, Inc. (NOW) has provided the following forward guidance: Subscription revenue: $15.735 billion–$15.775 billion (FY2026); Subscription revenue growth (constant currency): 20.5%–21% (FY2026); Subscription gross margin: 81.5% (FY2026); Operating margin: 31.5% (FY2026); Free cash flow margin: 35% (FY2026).