Stock · NOW · Technology

ServiceNow Inc

United States · Large Cap · listed since 2012 · Revenue 12 mo. $14.7B

Price as of 11/06/2026

StockScorer score
8.2
of 10 9 of 11 points High Match To the score
Price
$101.97
1 Y −50.2%
Market cap
$104.9B
Phase
Growth
revenue growing, core business profitable
Revenue +22.4% a year (3 years)EBIT margin 13.7%Payout 33.8% of operating cash flow

ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally.

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ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Brazil, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability; and with ServiceNow to Advance Ai-Powered Solution for Mission-Critical Infrastructure Monitoring. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. has a strategic alliance with Accenture for integrated risk management and third-party risk management solutions, and with Tech Mahindra to validate and deliver production-ready, industry-specific enterprise AI and automation solutions at scale. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

Original text from the data provider

Summary

ServiceNow Inc is around the middle of the Technology sector overall

52.4 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 10.1% FCF growth a year, less than achieved over the last 5 and 10 years.

If free cash flow stays at €4.1B (2025), it supports €45.6B. The remaining €48.6B of the market value assume it grows 10.1% a year for 10 years and not at all afterwards.

Required FCF growth per year

10.1%

no growth afterwards

Market value breakdown€94.2B market value, price as of 11/06/2026

€45.6B without growth
€48.6B priced-in growth
  • 5 yrs achieved 26.2%
  • 10 yrs achieved 39.6%
  • priced in 10.1%

Valuation against its own history

Price to operating cash flow 19.9×, below its usual range.

Middle half of 20 quarters: 33.7× to 44.5×, median 39.8×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

2 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • Expectation below the company's own record priced in 10.1%, achieved at least 26.2%
  • High, stable gross margin median 77.3%, range 7.9 pp (10 years)

What speaks against it

with respect to the priced-in expectation

  • EBIT margin falling for three quarters −2.5 pp over the last four reports

Since the last quarter

Q1 → Q2 2026

Mostly worse than the previous quarter: 4 of 5 changes for the worse.

  • Revenue, 12 mo.$14.0B → $14.7B+5.5%better
  • Gross margin76.6% → 74.8%−1.8 ppworse
  • EBIT margin13.4% → 11.4%−2.0 ppworse
  • FCF margin33.2% → 31.1%−2.1 ppworse
  • Net debt−$271.0M → $6.0Bsign changedworse

3 more unchanged: FCF, 12 mo., Shares outstanding, Return on equity

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability66.7above the middleEarns more than the sector: FCF margin 34.46%, sector 18.54%.
MetricStockSector medianPosition in sector
Return on equity13.48%14.60%Rank 45
Return on capital (Greenblatt)58.93%29.77%Rank 70
EBIT margin13.74%17.40%Rank 42
FCF margin34.46%18.54%Rank 89
Gross margin77.53%48.47%Rank 88
Growth84.1above the middleGrows faster than the sector: Earnings growth, 3 years per year 73.56%, sector 9.54%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year20.88%12.70%Rank 73
Earnings growth, 3 years per year73.56%9.54%Rank 96
Earnings growth, 5 years per year70.01%14.07%Rank 95
Sustainable growth (ROE × retained earnings)6.54%2.87%Rank 72
Valuation37.8below the middleValued higher than the sector: EV/EBIT 55.41, sector 26.24.
MetricStockSector medianPosition in sector
Earnings yield1.64%2.64%Rank 30
FCF yield4.36%3.06%Rank 64
EV/saleslower is better7.615.18Rank 35
EV/EBITlower is better55.4126.24Rank 22
Momentum37.1below the middleShare price doing worse than the sector: Share price, 1 year −50.24%, sector −0.59%.
MetricStockSector medianPosition in sector
Share price, 1 year−50.24%−0.59%Rank 5
Share price, 6 months12.32%−4.46%Rank 69
Share price, 3 months−13.21%−5.84%Rank 39
Distance from 52-week high−41.23%−33.23%Rank 36
Quality34.6below the middleQuality below the sector: Price reaction to results, market-adjusted −26.90%, sector −1.57%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−8.65%1.65%Rank 92
Change in share countlower is better0.47%−0.17%Rank 27
Dividend streak in years–8Rank 18
Price reaction to results, market-adjusted−26.90%−1.57%Rank 1
Balance sheet & risk54.0around the middleRisk about like the sector.
MetricStockSector medianPosition in sector
Equity ratio49.79%53.98%Rank 42
Net debt/EBITDAlower is better−1.29−0.20Rank 78
Debt to equitylower is better0.190.33Rank 65
Volatility, 1 yearlower is better63.99%50.37%Rank 31

Ten years in figures

Revenue from $1.4B (2016) to $13.3B (2025), 28.5% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt
20161.4−30.4%$31.5M823M$252.9M
20171.9−5.3%$485.6M856M$446.9M
20182.6−1.6%$562.2M889M$349.5M
20193.51.2%$898.4M986M$355.1M
20204.54.4%$1.4B1.01B$458.0M
20215.94.4%$1.8B1.02B$486.0M
20227.24.9%$2.2B1.02B$762.0M
20239.08.5%$2.7B1.03B$387.0M
202411.012.4%$3.4B1.04B−$26.0M
202513.313.7%$4.6B1.05B−$1.3B
8.2 / 10High MatchStockScorer score9 of 11 points

5 of 7 StockScorer Score rules met · How the score is built

ServiceNow Inc mainly meets criteria in the Growth category. Result from 18 strategies checked.

This stock · Profitability: 67%This stock · Growth: 100%This stock · Valuation: 100%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How ServiceNow Inc's score is built

ServiceNow Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

5 of 7 rules met

9 of 11 points

  1. Free cash flow yield above the sector medianmet2 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%met2 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does ServiceNow Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • PEG Strategy (inspired by Peter Lynch)
  • Moat Quality
  • Undervalued Stocks: Multi-Factor Check
  • Magic Formula: Value + Quality
  • Altman Z-Score: Stress Test
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • Dividend Aristocrats & Continuity
  • Dividend Quality: 4 Factors
  • Levermann Strategy (13 Criteria)
  • Trending Value: Value + Momentum
  • Growth Momentum (CAN SLIM principle)

ServiceNow Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for ServiceNow Inc.

MetricStockSector
P/E ratio61.135.1
P/B ratio8.25.5
Return on equity (ROE)13.5%14.6%
Equity ratio49.8%54.0%
Debt-to-equity (D/E)0.190.33
Dividend yield0.0%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
NOWServiceNow Incthis page
SNOWSnowflake Inc.locked
ADBEAdobe Inc.High7.3
ADPAutomatic Data Processing IncHigh6.4
INTUIntuit Inclocked
CDNSCadence Design Systems Inclocked

Frequently asked questions about ServiceNow Inc stock

How does ServiceNow Inc stock (NOW) score in the StockScorer model?
ServiceNow Inc stock reaches a StockScorer score of 8.2 out of 10, which is a high match with the rule-based strategies. 5 out of 7 flagship profile rules are met.
What is ServiceNow Inc's P/E ratio?
ServiceNow Inc's P/E ratio is 61.1. The Technology sector median is 35.1.
What sector is ServiceNow Inc in?
ServiceNow Inc is assigned to the Technology sector. Its rank within the sector is 52.4 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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