NOW Stock Analysis: ServiceNow | NYSE
Software - Application | NYSE, USA | Market Cap: 92.323m USD | 12M Return: -51.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.95B
EPS Trend: 99.4%
Qual. Beats: 0
Rev. Trend: 100.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
Average return per month, with how dependable it is below — did the month move the same way every year (high) or randomly (low). Above 60 is a pattern worth trusting; under 40 is noise.
ServiceNow, Inc. is a global cloud-based platform that provides digital workflow solutions across IT, HR, customer service, security operations, and other business functions, serving government, financial services, healthcare, manufacturing, retail, technology, and telecom sectors. The company operates a subscription-based software-as-a-service (SaaS) business model within the systems software segment of the information technology sector, distributing its products through direct sales, service providers, and resale partners. Headquartered in Santa Clara, California, and founded in 2004, ServiceNow has expanded internationally and recently announced a strategic collaboration with Cohesity, Inc. to develop secure autonomous AI agents and enterprise data management capabilities.
- cRPO growth accelerates signaling strong subscription revenue ahead
- Now Assist AI monetization drives net new ACV
- Operating margin expands toward 30% target on scale
| Net Income: 1.76b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.19 > 0.02 and ΔFCF/TA 1.49 > 1.0 |
| NWC/Revenue: -10.89% < 20% (prev 8.82%; Δ -19.71% < -1%) |
| CFO/TA 0.22 > 3% & CFO 5.44b > Net Income 1.76b |
| Net Debt (-1.81b) to EBITDA (3.23b): -0.56 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.04b) vs 12m ago -0.67% < -2% |
| Gross Margin: 76.56% > 18% (prev 78.92%; Δ -2.36% > 0.5%) |
| Asset Turnover: 61.56% > 50% (prev 54.69%; Δ 6.87% > 0%) |
| Interest Coverage Ratio: 104.0 > 6 (EBIT TTM 2.39b / Interest Expense TTM 23.0m) |
| A: -0.06 (Total Current Assets 8.44b - Total Current Liabilities 9.96b) / Total Assets 24.4b |
| B: 0.23 (Retained Earnings 5.71b / Total Assets 24.4b) |
| C: 0.11 (EBIT TTM 2.39b / Avg Total Assets 22.7b) |
| D: 0.93 (Book Value of Equity 11.7b / Total Liabilities 12.6b) |
| Altman-Z'' = 2.04 = BBB |
| DSRI: 1.04 (Receivables 1.71b/1.36b, Revenue 14.0b/11.5b) |
| GMI: 1.03 (GM 78.92% / 76.56%) |
| AQI: 1.31 (AQ_t 0.56 / AQ_t-1 0.43) |
| SGI: 1.22 (Revenue 14.0b / 11.5b) |
| TATA: -0.15 (NI 1.76b - CFO 5.44b) / TA 24.4b) |
| Beneish M = -2.65 (Cap -4..+1) = A |
As of July 01, 2026, the stock is trading at USD 99.28 with a total of 19,412,497 shares traded. Over the past week, the price has changed by +3.48%, over one month by -26.92%, over three months by -5.04% and over the past year by -51.72%.
Current recommended Stop Loss: 90.70 (which is 8.6% or 1.4 ATR below the current price).
ServiceNow has received a consensus analysts rating of 4.49. Therefore, it is recommended to buy NOW.
- StrongBuy: 31
- Buy: 10
- Hold: 5
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 141.5 | 42.5% |
P/E Trailing = 53.2857
P/E Forward = 21.3675
P/S = 6.6134
P/B = 7.872
P/EG = 0.8685
Revenue TTM = 14.0b USD
EBIT TTM = 2.39b USD
EBITDA TTM = 3.23b USD
Long Term Debt = 1.49b USD (from longTermDebt, last quarter)
Short Term Debt = 118.0m USD (from shortTermDebt, last quarter)
Debt = 3.37b USD (from shortLongTermDebtTotal, last quarter) + Leases 940.0m
Net Debt = -1.81b USD (calculated: Debt 3.37b - CCE 5.18b)
Enterprise Value = 90.5b USD (92.3b + Debt 3.37b - CCE 5.18b)
Interest Coverage Ratio = 104.0 (Ebit TTM 2.39b / Interest Expense TTM 23.0m)
EV/FCF = 19.54x (Enterprise Value 90.5b / FCF TTM 4.63b)
FCF Yield = 5.12% (FCF TTM 4.63b / Enterprise Value 90.5b)
FCF Margin = 33.19% (FCF TTM 4.63b / Revenue TTM 14.0b)
Net Margin = 12.59% (Net Income TTM 1.76b / Revenue TTM 14.0b)
Gross Margin = 76.56% ((Revenue TTM 14.0b - Cost of Revenue TTM 3.27b) / Revenue TTM)
Gross Margin QoQ = 75.07% (prev 76.63%)
Tobins Q-Ratio = 3.71 (Enterprise Value 90.5b / Total Assets 24.4b)
Interest Expense / Debt = 0.68% (Interest Expense 23.0m / Debt 3.37b)
Taxrate = 26.15% (622.0m / 2.38b)
NOPAT = 1.77b (EBIT 2.39b * (1 - 26.15%))
Current Ratio = 0.85 (Total Current Assets 8.44b / Total Current Liabilities 9.96b)
Debt / Equity = 0.29 (Debt 3.37b / totalStockholderEquity, last quarter 11.7b)
Debt / EBITDA = -0.56 (Net Debt -1.81b / EBITDA 3.23b)
Debt / FCF = -0.39 (Net Debt -1.81b / FCF TTM 4.63b)
Total Stockholder Equity = 11.7b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.75% (Net Income 1.76b / Total Assets 24.4b)
RoE = 14.98% (Net Income TTM 1.76b / Total Stockholder Equity 11.7b)
RoCE = 18.08% (EBIT 2.39b / Capital Employed (Equity 11.7b + L.T.Debt 1.49b))
RoIC = 12.75% (NOPAT 1.77b / Invested Capital 13.8b)
WACC = 9.22% (E(92.3b)/V(95.7b) * Re(9.54%) + D(3.37b)/V(95.7b) * Rd(0.68%) * (1-Tc(0.26)))
Discount Rate = 9.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 0.21%
[DCF] Terminal Value 75.20% ; FCFF base≈4.25b ; Y1≈4.87b ; Y5≈7.17b
[DCF] Fair Price = 92.43 (EV 93.5b - Net Debt -1.81b = Equity 95.3b / Shares 1.03b; r=9.22% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.38 | EPS CAGR: 28.62% | SUE: 0.0 | # QB: 0
Revenue Correlation: 99.95 | Revenue CAGR: 22.03% | SUE: 0.80 | # QB: 0
EPS next Quarter (2026-09-30): EPS=1.09 | Chg30d=+0.07% | Revisions=+0% | Analysts=38
EPS current Year (2026-12-31): EPS=4.12 | Chg30d=-0.00% | Revisions=-14% | GrowthEPS=+17.5% | GrowthRev=+22.0%
EPS next Year (2027-12-31): EPS=5.03 | Chg30d=+0.02% | Revisions=+29% | GrowthEPS=+21.9% | GrowthRev=+18.6%
[Analyst] Revisions Ratio: +29%