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ServiceNow Inc (NOW)

Fair Value
TechnologySoftware - ApplicationUnited States

Fundamental

63

Price

$158.96

Market Cap

$158.30B

Part 1 · What the company is worth

Overview

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.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Compare

Generated with artificial intelligence on September 19, 2026, shared with all users

P/E: 22.7Score: 83Market cap: $198.98B

Named by ServiceNow in its own 10-K, Salesforce sells a rival cloud workflow platform whose Service Cloud and IT Service products chase the same enterprise service-desk and customer-service budgets.

P/E: —Score: 62Market cap: —

Jira Service Management is the most common alternative bid against ServiceNow for IT service management, especially in companies whose development teams already run on Atlassian tools.

P/E: 29.2Score: 78Market cap: $3.93T

Named as a competitor in ServiceNow's 10-K, Microsoft pushes Power Platform, Dynamics 365 and Copilot-based agents as a workflow-automation alternative bundled into deals ServiceNow is bidding for.

P/E: 24.6Score: 74Market cap: $2.28B

Freshservice competes for the same IT service-desk contracts with a lighter, faster-to-deploy product, typically winning mid-market accounts that consider ServiceNow too heavy.

BMC Software, Inc.Not tracked

BMC Helix is a direct ITSM platform competitor sold to the same large-enterprise IT organizations, and it is where ServiceNow's founder came from; the company is privately held under KKR ownership.

Balance Sheet & Liquidity

Revenue

$14.73B

Trailing 12 months (through 6/30/2026)

Net Income

$1.67B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$4.58B

Total Equity

$12.96B

Total Liabilities

$13.07B

Current Ratio

0.70

Interest Coverage

-

Debt/EBITDA

4.12

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$196.90

Current Price

$158.96

Margin of Safety

+19.3%

Fair Value Range

$127.98 - $265.81

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$154.80
Discounted cash flow (DCF):$345.27
Earnings multiple (P/E):$61.65
Graham growth formula:$84.43
Earnings power value (EPV):$13.11
Justified P/B:$19.14
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:$38.47
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$76.82
Last Earnings Surprise:+4.35%

Valuation Metrics

P/E Ratio

99.35

ROE

13.5%

P/B Ratio

13.13

P/FCF

35.89

Gross Margin

74.8%

ROIC

6.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

6.8%

WACC

9.2%

ROIC − WACC

-2.4 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • Price CAGR 25.14%
  • ROIC 6.8%
  • Gross margin 74.8%
  • Debt/equity ratio
  • Operating margin 11.4%
  • Positive free cash flow
  • CapEx intensity
  • Debt/EBITDA
  • Return on tangible assets
  • ROE 13.8%
  • Revenue growth 5Y 24.1%
  • Earnings surprise, average 4.8%
  • PEG ratio 1.32
  • Earnings quality (operating cash flow / net income) 3.18
  • Share dilution 0.6%
  • Piotroski F-Score 5/9

Failed (7)

  • P/FCF 35.89
  • P/B ratio 13.13
  • Current ratio
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Net margin trend 11.3% vs 13.8%

Unavailable (2)

  • Dividend payout –
  • Interest coverage

Piotroski F-Score

5/9

Mixed signals: some areas need attention

ROA > 0
Operating cash flow > 0
ΔROA > 0
Cash flow > net income
Leverage ↓
Current ratio ↑
No dilution
Gross margin ↑
Asset turnover ↑

Earnings Quality

3.18

High quality: earnings backed by cash

Share Dilution

0.6%

Share count is stable

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. William R. McDermottChairman & CEO63
Ms. Gina M. MastantuonoPresident & CFO55
Mr. Amit K. ZaveryPresident, Chief Product Officer & COO53
Mr. Frederic B. LuddyFounder & Director70
Ms. Jacqueline P. CanneyChief People & AI Enablement Officer57
Mr. Paul FippsPresident of Global Customer Operations52
Mr. Hossein NowbarPresident, Secretary & Chief Legal Officer-
Ms. Danielle FontaineCAO & Corporate Controller-
Mr. Pat CaseyExecutive VP & CTO-
Mr. Darren YipHead of Investor Relations-

Audit Risk

2

Board Risk

9

Compensation Risk

7

Shareholder Rights Risk

2

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-01-29

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-23

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-07-22

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Part 2 · The price and its context

This part shows how the price has behaved, not whether the company is worth owning. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Market Reaction Profile

How much NOW moves, measured on its daily prices.

VolatilityHigh

More volatile than 81% of the tracked stocks (90-day volatility).

Volatility 30d
40.8%
Volatility 90d
55.0%
Beta vs S&P 500 (1y)
0.60Correlation 0.13
Max drawdown (12m)
-56.1%
ATR (14d, % of price)
3.85%

Earnings reactions

How NOW moved around its past quarterly results.

Next earnings release

Oct 28, 2026 · In 4 days · After the close

EPS estimate: 1.02Revenue estimate: $4.1B

What usually happens

  • Over the last 12 releases the stock moved a median of 4.8% the next day, up or down.
  • Next-day moves: up 7, down 5 (out of 12).

Release history

DateWhen EPS est.EPS actualSurprise Gap 1 day5 days
Jul 22, 2026After the close0.860.90+4.3% +4.8% -3.7% +21.3%
Apr 22, 2026After the close0.970.97-0.3% -15.3% -17.7% -13.8%
Jan 28, 2026After the close0.890.92+3.2% -8.6% -9.9% -14.3%
Oct 29, 2025After the close0.860.96+11.8% +1.6% +2.5% -3.5%
Jul 23, 2025After the closen/an/an/a+8.2% +4.2% +2.2%
Apr 23, 2025After the closen/an/an/a+10.8% +15.5% +17.5%
Jan 29, 2025After the closen/an/an/a-10.2% -11.4% -10.2%
Oct 23, 2024After the closen/an/an/a+4.5% +5.4% +4.7%
Jul 24, 2024After the closen/an/an/a+8.0% +13.4% +11.4%
Apr 24, 2024After the closen/an/an/a-4.2% -4.0% -8.1%
Jan 24, 2024After the closen/an/an/a+2.2% +0.4% +0.3%
Oct 25, 2023After the closen/an/an/a+5.6% +3.9% +11.9%

Release dates from SEC 8-K filings.

Updated 10/24/2026

Historical statistics for educational purposes only. They are not forecasts and not investment advice.

Price reaction to the news

Latest news on NOW and what the price did next.

Return of the stock minus return of SPY over the same days. A news item close to a price move did not necessarily cause it. Historical data for educational purposes only, not investment advice.

Latest News

Recent headlines for NOW.

  • 9d agoPOSITIVE
    ServiceNow sale del 6%: investitori ruotano verso il software enterprise

    ServiceNow Inc. shares surged 6.2% on Thursday following an upgrade from TD Cowen, which raised its price target to $165 from $140 and maintained a 'Buy' rating. Analyst Derrick Wood anticipates a strong third quarter, driven by customer upgrades, security product expansion, and demand from U.S. federal agencies. This rally occurred as investors shifted capital towards enterprise software stocks, away from semiconductor shares and highly leveraged AI companies. The broader sector also benefited, with Salesforce gaining nearly 4% and Adobe showing positive movement. The upgrade and sector rotation signal strong investor confidence in ServiceNow's growth prospects.

  • 22d agoPOSITIVE
    Top ServiceNow exec on clients delivering ‘life-changing’ results with AI agents—and he’s seeing it now at Standard Chartered

    ServiceNow's President of Global Customer Operations, Paul Fipps, highlighted at the Fortune AIQ Summit that clients are achieving 'life-changing' results with AI agents, even at institutions like Standard Chartered. Fipps noted that some clients are so reliant on these AI agents that they "can't rely on humans" to oversee them. This indicates a high level of trust and integration of ServiceNow's AI solutions, suggesting strong customer satisfaction and potential for future growth as businesses increasingly adopt AI for critical operations.

  • 9/15/2026POSITIVE
    Perché le richieste di rallentare l'IA possono favorire le azioni ServiceNow

    ServiceNow shares surged 7.4% to $142.35 on Monday, bucking a broader tech downturn. This rally suggests investors are reassessing the threat of AI agents to established enterprise applications. While the PHLX Semiconductor Index fell 5.9% amid calls for a slowdown in advanced AI model development, ServiceNow's rise indicates a potential benefit from slower AI progress. For investors, this suggests that a more cautious approach to AI deployment could enhance the value of governance solutions, a key area for ServiceNow, mitigating disruption risks and potentially boosting its market position.

  • 8/28/2026POSITIVE
    È un'opportunità d'oro comprare ServiceNow mentre si avvicina un raro pattern?

    ServiceNow shares have experienced a significant rally, climbing 70% from their year-to-date low to reach $138. This upward momentum is supported by robust demand for its services and the anticipation of a 'golden cross' pattern, a bullish technical indicator. Despite a previous dip from a high of $240 to $81.23, attributed partly to the rise of AI tools like ChatGPT, ServiceNow's fundamentals remain strong. The company's ability to navigate the evolving tech landscape and capitalize on its service offerings suggests continued growth potential for investors.

  • 8/20/2026POSITIVE
    ServiceNow, Adobe e Workday: BofA alza i target — cosa alimenta l'ottimismo

    Bank of America has raised price targets for several software companies, including ServiceNow, Workday, and Adobe, citing their strong potential to monetize artificial intelligence. This optimism is fueling a broader rally in the software sector, with ServiceNow shares climbing 6.5% on Wednesday. The move signals a shift in investor sentiment, moving away from fears that AI would disrupt traditional software business models. Instead, investors are increasingly betting on established companies to leverage AI, potentially enhancing their existing product offerings and driving revenue growth. This positive outlook suggests continued upward momentum for these software giants.

  • 8/19/2026POSITIVE
    ServiceNow’s stock leads a software rally. Here’s what’s energizing investors.

    ServiceNow Inc. is leading a rally in traditional software stocks, driven by increasing investor confidence that the sector can effectively navigate and integrate Artificial Intelligence (AI) disruption rather than be replaced by it. This sentiment suggests that established software providers are well-positioned to leverage AI advancements, potentially enhancing their product offerings and maintaining competitive advantages. The positive outlook for ServiceNow and its peers indicates a potential for sustained growth and may attract further investment into the software sector as a whole.

  • 8/14/2026NEUTRAL
    ServiceNow CFO: Trillions are being spent on AI initiatives. Are companies asking these 3 key questions?

    ServiceNow's CFO highlighted the immense scale of AI investments, with trillions being allocated globally. This surge in spending underscores a critical juncture for businesses, forcing rapid, often uncertain, investment decisions. The CFO's commentary implies that companies are grappling with strategic choices regarding AI deployment and ROI. While the news points to significant capital flowing into AI, it doesn't provide specific financial figures or direct guidance from ServiceNow itself, making its immediate market impact neutral. Investors should monitor how ServiceNow capitalizes on this AI spending trend.

  • 7/23/2026NEGATIVE
    ServiceNow’s stock falls as a new AI threat overshadows earnings beat

    ServiceNow Inc. (NOW) experienced a stock decline despite beating earnings expectations, as the recent launch of OpenAI's Presence AI model has rekindled concerns about potential disruption to its enterprise software offerings. While the company's own AI advancements are showing traction, the competitive threat from a major AI player like OpenAI introduces significant uncertainty. Investors are now weighing the company's current performance against the long-term implications of this new competitive landscape, leading to a cautious sentiment despite the positive earnings report.