ServiceNow, Inc. (NOW)
Information Technology · Systems Software · US stock · S&P 500 component
$157.00
▲ +3.88 (2.53%)
Fair valueUndervalued
$192 +22.5% to fair value
$96fair band $164–$233$289
Day's range
$153.57 – $157.60
52-week range
$81.24 – $192.97
About ServiceNow, Inc.
ServiceNow provides a cloud platform that helps organisations run work through automated digital workflows. Its products cover IT service and operations management, employee and customer service, security and risk, and tools for building custom business applications, with artificial intelligence features built in. Customers are large enterprises and public sector bodies, typically on subscription terms, and the company is based in California.
ServiceNow earns revenue mainly from subscriptions to its platform, supplemented by professional services. Revenue is $14.7 billion over the last twelve months, growing at 22.4% a year across three years. The operating margin is 11.4%, and the business earns a profit of 6% on the capital invested in it. The company carries net debt of 2.1 times EBITDA and pays no dividend. On the site's X-Ray Score it receives 48 out of 100.
Price chart
52-wk range $81.24 – $192.97Volume 17,388,533Daily, split-adjusted
Vitals
Market cap$162.4B
52-week range$81.24 – $192.97
Volume (last day)17,388,533
P/E (TTM)78.3
EBIT / EV yield1.0%
Free-cash-flow yield2.8%
Dividend yieldNo dividend
Revenue (TTM)$14.7B
Net income (TTM)$1.7B
Operating margin11.4%
Return on capital6.5%
Debt incl. leases$10.6B
Cash & securities$4.7B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$192middle half of models $185 – $198
Undervalued
+22.5% to fair value
Average of the 10 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Peak-cycle earnings: the current operating margin is more than 1.5x its 7-year average, so multiples applied to today's profit may overstate value; model uncertainty is set to High
Price $157
Undervalued < $164Fair $164 – $233Overvalued > $233
P/E multiple
$192
P/B multiple
$197
P/S multiple
$201
EV/EBITDA multiple
$184
EV/EBIT multiple
$243
EV/revenue multiple
$185
10-year DCF, EBITDA exit
$170
5-year DCF, EBITDA exit
$198
10-year DCF, revenue exit
$165
5-year DCF, revenue exit
$189
10-year DCF, growth exit · not used
$22
5-year DCF, growth exit · not used
$18
Earnings power value · not used
$17
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, but the price is low
Our models put fair value above today's price, but models can be wrong, so check the business first. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
56/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield1.0%
Free-cash-flow yield2.8%
Fair value vs price1.2×
Growth
Fair
69/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)22.4%
EPS growth (3y)1.4%
Growth consistency100%
Profitability
Weak
44/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital6.5%
Operating margin11.4%
Gross profitability34.8%
Financial health
Weak
23/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score3 / 9
Net debt / EBITDA2.1×
Interest coverNo interest cost
Dividends
None
–/100
Pays no dividend.
See the numbers →
Quarterly results: last 6 quarters
+18.6%
Mar '25
+22.4%
Jun '25
+21.8%
Sep '25
+20.7%
Dec '25
+22.1%
Mar '26
+24.0%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $4.0B, diluted EPS $0.29.
Compare with peers
MSFT Microsoft Corp61 FTNT Fortinet, Inc.59 GEN Gen Digital Inc.59 TWLO Twilio Inc43Other Systems Software companies by X-Ray Score.
SWOT analysis: ServiceNow, Inc.
Strengthsinside the company
- Revenue has grown 22.4% a year over three years (median 15.8% for industry peers).
- Operating profit covers interest 50x, so debt costs are a small drag.
Weaknessesinside the company
- Operating margin of 11.4% is thin against 19.2% for industry peers.
- Passes only 3 of the 9 Piotroski tests, which shows weak or worsening financial trends.
- Altman Z-score of 0.9 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- The price is 23% below our fair value estimate, with the gap larger than the margin we allow for error.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Trades at 97.2x earnings, 103% above the 47.8x median of industry peers, so the price already assumes better results.
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare NOW with peers and sector
Medians of 6 Systems Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): MSFT 61, PANW 33, CRWD 33, FTNT 59, TWLO 43, GEN 59.
| Metric | NOW | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 48 | 51 | 50 |
| Valuation | 56 | 38 | 50 |
| Growth | 69 | 63 | 54 |
| Profitability | 43 | 42 | 50 |
| Financial health | 23 | 50 | 50 |
| Dividends | – | – | 50 |
Sector leaders: highest X-Ray Score in Information Technology
NOW ranks #45 of 75 in Information Technology and #4 of 7 in Systems Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for NOW
Each factor is rated by where NOW stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 8 Good · 4 Average · 10 Bad of 22
Growth: 2 · 1 · 0
Profitability: 1 · 1 · 3
Financial strength: 1 · 0 · 3
Valuation: 0 · 1 · 4
Cash flow: 4 · 0 · 0
Efficiency: 0 · 1 · 0
| Factor | NOW | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +22.4% | Good beats 84% | +9.7% | – | – |
| Revenue growth, last year | +20.9% | Good beats 71% | +13.7% | +22.9% | ≈ In line |
| EPS growth, 3 years a year | +1.4% | Average beats 41% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 74.8% | Good beats 80% | 57.8% | 78.3% | ≈ In line |
| Operating margin | 11.4% | Bad beats 25% | 20.3% | 8.5% | ▲ Better |
| Net margin | 11.3% | Average beats 34% | 17.8% | 13.0% | ▼ Worse |
| Return on invested capital | 6.5% | Bad beats 16% | 19.4% | – | – |
| Return on equity | 13.3% | Bad beats 29% | 21.0% | 13.5% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 2.1x | Bad beats 23% | 0.8x | -4.4x | ▼ Worse |
| Interest cover | 50.0x | Good beats 75% | 23.0x | – | – |
| Current ratio | 0.70 | Bad beats 7% | 1.57 | 1.06 | ▼ Worse |
| Piotroski F-score | 3 / 9 | Bad beats 3% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 97.2x | Bad beats 10% | 33.6x | 91.7x | ≈ In line |
| Price / book | 13.0x | Bad beats 32% | 8.3x | 19.0x | ▲ Better |
| Price / sales | 11.0x | Bad beats 27% | 6.9x | 16.2x | ▲ Better |
| EV / EBITDA | 61.2x | Bad beats 13% | 24.7x | – | – |
| Free cash flow yield | 2.8% | Average beats 44% | 3.4% | 1.9% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 31.1% | Good beats 75% | 22.3% | 30.5% | ≈ In line |
| Cash from operations / net income | 3.18 | Good beats 92% | 1.39 | 3.11 | ≈ In line |
| Free cash flow growth, 3 years a year | +28.2% | Good beats 71% | +15.4% | – | – |
| Accruals (lower is better) | −11.5% | Good beats 86% | −4.4% | – | – |
| Efficiency | |||||
| Days sales outstanding | 55 days | Average beats 65% | 63 days | 83 days | ▲ Better |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 6 Good · ● 3 Average · ● 7 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldAverage
Risk models
Altman Z''Bad
Piotroski F-ScoreBad
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Good
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioBad
Net debt / EBITDABad
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginBad
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 49/100.
Financials
| FY21 | FY22 | FY23 | FY24 | FY25 | |
|---|---|---|---|---|---|
| Revenue | $5.9B | $7.2B | $9.0B | $11.0B | $13.3B |
| Operating income | $257M | $355M | $762M | $1.4B | $1.8B |
| Net income | $230M | $325M | $1.7B | $1.4B | $1.7B |
| Operating cash flow | $2.2B | $2.7B | $3.4B | $4.3B | $5.4B |
| Operating margin | 4.4% | 4.9% | 8.5% | 12.4% | 13.7% |
| Free cash flow | $1.8B | $2.2B | $2.7B | $3.4B | $4.6B |
| Diluted EPS | $1.13 | $1.60 | $1.68 | $1.37 | $1.67 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 145.5 | Bullish |
| EMA 10 | 147.0 | Bullish |
| SMA 20 | 140.5 | Bullish |
| EMA 20 | 143.0 | Bullish |
| SMA 50 | 136.9 | Bullish |
| EMA 50 | 135.6 | Bullish |
| SMA 100 | 122.2 | Bullish |
| EMA 100 | 127.9 | Bullish |
| SMA 200 | 115.1 | Bullish |
| EMA 200 | 128.4 | Bullish |
Oscillators (daily)
| RSI (14) | 68.58 | Neutral |
| MACD (12, 26) | 4.56 | Bullish |
| Momentum (12) | 13.79 | Bullish |
| Stochastic %K (14) | 97.44 | Bearish |
| Williams %R (14) | -2.56 | Bearish |
| CCI (20) | 204.1 | Bearish |
Pivot points (classic, last session)
S3 150.5 | S2 152.0 | S1 154.5 | Pivot 156.1 | R1 158.5 | R2 160.1 | R3 162.6 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
ETFs that hold NOW
| ETF | Share of the fund |
|---|---|
| IGV iShares Expanded Tech-Software Sector | 3.87% |
| AIPI REX AI Equity Premium Income | 3.43% |
| IVES Dan IVES Wedbush AI Revolution | 3.07% |
| GRNY Fundstrat Granny Shots US Large Cap | 2.49% |
| AKRE Akre Focus | 2.32% |
| SKYY First Trust Cloud Computing | 1.57% |
| RSPT Invesco S&P 500 Equal Weight Technolog... | 1.43% |
| WCLD WisdomTree Cloud Computing | 1.26% |
The eight funds with the largest weight in NOW among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
NOW stock splits
NOW has split its stock once since 2025. The latest was a 5-for-1 split on 18 Dec 2025.
Full NOW stock split history →NOW SEC filings
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change; Shareholder vote results
8-KSEC EDGAR
Entered a material agreement; Other events
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Entered a material agreement; Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Entered a material agreement
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.