(NOW) ServiceNow - NYSE
Sector: Technology | Industry: Software - Application | Exchange: NYSE (USA) | Market Cap: 107.411m USD | Total Return: -49.6% in 12m
Avg Turnover: 3.39B
EPS Trend: 94.0%
Qual. Beats: -1
Rev. Trend: 100.0%
Qual. Beats: 0
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
ServiceNow, Inc. (NYSE: NOW) is a global provider of cloud-based software designed to automate and manage enterprise digital workflows. Its core platform delivers solutions across IT service management, employee human resources, customer service, and security operations. The company operates within the Systems Software sub-industry, a sector characterized by high recurring revenue through Software-as-a-Service (SaaS) subscription models.
The company’s technology stack includes specialized tools for asset management, legal operations, and AI-driven recommendations via its ServiceNow Impact suite. ServiceNow integrates generative AI capabilities through strategic collaborations to enhance autonomous agents and data reliability for large-scale government and private sector clients. This business model relies on high switching costs and deep integration into a clients operational infrastructure to maintain long-term contract stability.
For more detailed insights into these operational trends, consider reviewing the latest performance metrics on ValueRay. Founded in 2004 and headquartered in Santa Clara, California, ServiceNow serves diverse industries including healthcare, financial services, and manufacturing through a global network of resale partners and service providers.
- Generative AI product adoption accelerates high-margin subscription revenue growth
- Enterprise cloud spending resilience stabilizes long-term remaining performance obligations
- Platform expansion beyond IT into HR and customer service workflows
- Strategic partnerships with AI hardware providers enhance enterprise automation capabilities
- Global macroeconomic volatility pressures large-scale digital transformation project timelines
| 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 June 17, 2026, the stock is trading at USD 101.33 with a total of 17,159,957 shares traded.
Over the past week, the price has changed by -5.27%,
over one month by -2.02%,
over three months by -11.79% and
over the past year by -49.59%.
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 | 141.9 | 40% |
P/E Trailing = 61.9941
P/E Forward = 24.8756
P/S = 7.6942
P/B = 9.1585
P/EG = 1.0104
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 = 106b USD (107b + Debt 3.37b - CCE 5.18b)
Interest Coverage Ratio = 104.0 (Ebit TTM 2.39b / Interest Expense TTM 23.0m)
EV/FCF = 22.79x (Enterprise Value 106b / FCF TTM 4.63b)
FCF Yield = 4.39% (FCF TTM 4.63b / Enterprise Value 106b)
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 = 4.33 (Enterprise Value 106b / 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 = 9.19% (E(107b)/V(111b) * Re(9.46%) + D(3.37b)/V(111b) * Rd(0.68%) * (1-Tc(0.26)))
Discount Rate = 9.46% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 64.44 | Cagr: 0.21%
[DCF] Terminal Value 75.31% ; FCFF base≈4.25b ; Y1≈4.87b ; Y5≈7.17b
[DCF] Fair Price = 92.91 (EV 94.0b - Net Debt -1.81b = Equity 95.8b / Shares 1.03b; r=9.19% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 93.95 | EPS CAGR: 45.64% | SUE: -2.02 | # QB: -1
Revenue Correlation: 99.95 | Revenue CAGR: 22.03% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.86 | Chg30d=+0.02% | Revisions=-20% | Analysts=38
EPS next Quarter (2026-09-30): EPS=1.09 | Chg30d=+0.03% | Revisions=+0% | Analysts=38
EPS current Year (2026-12-31): EPS=4.12 | Chg30d=+0.01% | 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%