NYSE: NOW · Systems Software
ServiceNow
ServiceNow, based in Santa Clara, California, sells cloud software built on the ServiceNow AI Platform that helps organizations digitize and automate workflows across IT, employee, customer and other functions, and govern and secure their use of AI. Revenue rose 21% in 2025 to $13,278 million, 97% from subscriptions, with 37% from outside North America and 603 customers paying more than $5 million a year (up from 420 in 2023); net income was $1,748 million. It completed a 5-for-1 stock split in December 2025. ServiceNow has stepped up acquisitions: Moveworks (AI assistants and enterprise search, $2.4 billion, December 2025), Veza (AI identity security, about $1.2 billion, March 2026) and Armis (cyber-exposure management, about $7.6 billion in cash, April 2026), funded partly by a $4 billion bond issue in May 2026. Revenue for the first nine months of 2026 grew to $11,863 million, but net income fell to $1,044 million.
Last updated
Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 14:37 (SEC EDGAR) · Source 10-K filed: January 29, 2026
Built on10-K FY2025 · filed 2026-01-2910-Q (quarter ended 2026-09-30) · filed 2026-10-28Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 24.1%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 13.7%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +2.5 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -1.9x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 3.11x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- —
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 81.1x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.20
Higher than 90% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 34% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 46% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 4% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 90% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$111.96close on 2026-11-04
Market cap$117.25B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 81.1x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 9.0x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 43.9x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 3.9%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- —
At FY2025 year-end: 91.7x
Earnings: trailing 12 months to 2026-09-30
At FY2025 year-end: 12.4x
Book value at FY2025 year-end
At FY2025 year-end: 61.7x
EBITDA for FY2025
At FY2025 year-end: 2.9%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$3.41B → $4.11B (vs. a year earlier)↑ +20.5%$3.41B → $4.11B (vs. a year earlier)
- Operating margin16.8% → 9.4% (vs. a year earlier)↓ −7.4 pts16.8% → 9.4% (vs. a year earlier)
- Net income$502M → $277M (vs. a year earlier)↓ −44.8%$502M → $277M (vs. a year earlier)
- Diluted EPS$0.48 → $0.27 (vs. a year earlier)↓ −43.7%$0.48 → $0.27 (vs. a year earlier)
- Cash$2.5B → $2.39B (vs. previous quarter-end)↓ −4.4%$2.5B → $2.39B (vs. previous quarter-end)
- Long-term debt$5.44B → $5.44B (vs. previous quarter-end)→ +0.1%$5.44B → $5.44B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
04
Company profileFrom SEC dataShow
- Legal name
- ServiceNow, Inc.
- Headquarters
- SANTA CLARA, CA
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: NOW
- Industry
- Systems Software
- CIK
- 1373715
Workforce (as of FY2025 year-end)
Employees
29,187
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 24–29 days after quarter end (Jan 28, 2026; Jan 29, 2025; Jan 24, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 22–29 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Oct 28, 2026 (+28 days) | Oct 28, 2026 10-Q (+28 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 22, 2026 (+22 days) | Jul 23, 2026 10-Q (+23 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 22, 2026 (+22 days) | Apr 23, 2026 10-Q (+23 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 28, 2026 (+28 days) | Jan 29, 2026 10-K (+29 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 23, 2025 (+23 days) | Jul 24, 2025 10-Q (+24 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 23, 2025 (+23 days) | Apr 23, 2025 10-Q (+23 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 29, 2025 (+29 days) | Jan 30, 2025 10-K (+30 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 23, 2024 (+23 days) | Oct 24, 2024 10-Q (+24 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 24, 2024 (+24 days) | Jul 25, 2024 10-Q (+25 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 24, 2024 (+24 days) | May 6, 2024 10-Q (+36 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 24, 2024 (+24 days) | Jan 25, 2024 10-K (+25 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Platform
ServiceNow AI Platform
Cloud platform for building and running workflows and AI agents.
Technology workflows
ITSM, ITOM, risk and security
IT service and operations management, risk management, security operations; expanded with Armis and Veza.
AI
Now Assist and Moveworks
Generative AI assistants, enterprise search and virtual agents.
From the Form 10-K, FY2025.
U.S. and worldwide share of flagship products/services
ServiceNow gives no market-share figures in its 10-K.
Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
Recent developments.
Armis acquisition
Closed April 20, 2026 for about $7.6B in cash; term loan repaid with $4B of notes in May 2026.
Source: Form 10-Q (quarter ended 2026-09-30)
Workforce optimization
2026 workforce optimization strategy leveraging AI-driven efficiencies, with severance costs.
Source: Form 10-Q (quarter ended 2026-09-30)
Nine months 2026
Revenue $11,863M versus $9,710M; net income $1,044M versus $1,347M.
Source: Form 10-Q (quarter ended 2026-09-30)
Capex ÷ D&A (FY2025)
1.18x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$868M ÷ $738M = 1.18x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
22.3%
formularesearch & development expense ÷ revenue × 100
e.g.$2,960M ÷ $13,278M × 100 = 22.3%
M&A spend (6-year total)
$2.46B
Latest year: $1.08B
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $419M in FY2020 to $868M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$13.28B
As reported in the 10-K
Revenue CAGR (5 years)
+24.1%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($13,278M ÷ $4,519M) ^ (1÷5) − 1 = 24.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
13.7%▲favorable
+9.3pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$1,824M ÷ $13,278M × 100 = 13.7%
ROE (FY2025)
15.5%▲favorable
6-year average: 13.0%
As reported in the 10-K
P/B (FY2025 end)
12.38x
formulafiscal year-end closing price ÷ book value per share
e.g.$153.19 ÷ $12.38 = 12.38x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
61.7x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($160,433M + $1,491M − $3,726M) ÷ ($1,824M + $738M) = 61.7x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +24.1% a year over 5 years (strong growth)
From $4.52B in FY2020 to $13.28B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 4.4% → 13.7%
How much operating profit is left per $100 of revenue. It moved +9.3 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 49.8% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 13.0% over 6 years (latest: 15.5%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- Moveworks
- Armis
- Veza
07 · what it does
Key activities
- Technology workflows (ITSM, ITOM, security, risk)
- Customer and industry workflows
- Employee and creator workflows
- AI products such as Now Assist
06 · what it draws on
Key resources
- 29,187 full-time employees
- ServiceNow AI Platform and data centers worldwide
- Partner ecosystem of integrators and resellers
02 · why customers buy
Value propositions
- A single platform for IT, employee and customer workflows, with AI built in.
04 · how it keeps them
Customer relationships
- Multi-year subscriptions with standard and enhanced support and self-service resources.
03 · how it reaches them
Channels
- Direct sales and partners.
01 · who it serves
Customer segments
- Large enterprises and public sector organizations; 603 customers with ACV over $5M
09 · where money goes
Cost structure
FY2025, share of revenue ($13.28B)
- Cost of revenue22.5%
- Research & development22.3%
- Selling, general & administrative8.5%
- Other operating costs33.0%
Operating profit left: 13.7% of revenue. Depreciation & amortization (inside the costs above): $738M. Capital spending: $868M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Subscription $12,883M (2025)
- Professional services and other $395M
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Customers pay multi-year subscriptions for workflow applications (IT service and operations management, employee, customer, security and risk workflows, AI agents) running on one cloud platform, with small professional services revenue.
01 what it draws on
Inputs & resources
- 29,187 full-time employees
- ServiceNow AI Platform and data centers worldwide
- Partner ecosystem of integrators and resellers
02 what it does
Activities
- Technology workflows (ITSM, ITOM, security, risk)
- Customer and industry workflows
- Employee and creator workflows
- AI products such as Now Assist
03 who it serves
Customers
- Large enterprises and public sector organizations; 603 customers with ACV over $5M
04 how money comes in
How it earns
- Subscription $12,883M (2025)
- Professional services and other $395M
How the business makes money
- No customer exceeded 10% of revenue.
- Revenue outside North America 37% in 2025 and 2024.
- $5.0B added to buyback authorization in January 2026.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
ServiceNow sells to U.S. and non-U.S. governments under procurement rules.
Government as customer
Government contracts
Non-U.S. government customers bring procurement risks similar to U.S. government contracting.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Trade & export rules
Export controls and sanctions
Must comply with anti-corruption, export control and sanctions laws.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Subscription
12,883 (97%)Professional services and other
395 (3%)
Source: Form 10-K (FY2025) Revenue by type for 2025; ServiceNow has one reportable segment.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Pending or recent acquisition
Moveworks
Acquired December 2025 for total consideration of $2.4B (enterprise search and virtual agents).
Source: Form 10-K (FY2025)
Pending or recent acquisition
Armis
Acquired April 20, 2026 for about $7.6B in cash (cyber-exposure management and cyber-physical security).
Pending or recent acquisition
Veza
Acquired March 2, 2026 for about $1.2B (AI identity security).
12
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Enterprises and public sector organizations worldwide.
Named by the company
No customer exceeded 10% of total revenues.
Suppliers
Data center, cloud and technology suppliers.
Named by the company
No material supplier is named.
13
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
ServiceNow competes with enterprise application vendors, new AI technologies and entrants, in-house solutions, consultants, systems integrators and resellers.
Competitors named in the 10-K
Peer group the company chose
2025 Peer Group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Compensation and TSR peer group from the 2026 proxy statement.
- Adobesite ↗
- Airbnbsite ↗
- Atlassiansite ↗
- Blocksite ↗
- eBaysite ↗
- Electronic Artssite ↗
- Intuitsite ↗
- Netflixsite ↗
- Oraclesite ↗
- Palo Alto Networkssite ↗
- PayPalsite ↗
- Salesforcesite ↗
- Snowflakesite ↗
- Ubersite ↗
- Visasite ↗
- Workdaysite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
14
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
| Line item | FY2020In next year’s 10-K | FY2021In next year’s 10-K | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 4,519 | 5,896 | 7,245 | 8,971 | 10,984 | 13,278 |
| Operating income | 199 | 257 | 355 | 762 | 1,364 | 1,824 |
| Pretax income | 150 | 249 | 399 | 1,008 | 1,738 | 2,261 |
| Net income (attributable) | 119 | 230 | 325 | 1,731 | 1,425 | 1,748 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 30.5% | 22.9% | 23.8% | 22.4% | 20.9% |
| Operating margincalcoperating income ÷ revenue × 100 | 4.4% | 4.4% | 4.9% | 8.5% | 12.4% | 13.7% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 2.6% | 3.9% | 4.5% | 19.3% | 13.0% | 13.2% |
| Balance sheet ($M) | ||||||
| Total assets | 8,715 | 10,798 | 13,299 | 17,387 | 20,383 | 26,038 |
| Total equity | 2,834 | 3,695 | 5,032 | 7,628 | 9,609 | 12,964 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 0 | 92 | 0 | 1,488 | 1,489 | 1,491 |
| Equity ratio | 32.5% | 34.2% | 37.8% | 43.9% | 47.1% | 49.8% |
| ROE | 4.2% | 7.0% | 7.4% | 27.3% | 16.5% | 15.5% |
| Cash flow ($M) | ||||||
| Operating CF | 1,786 | 2,191 | 2,723 | 3,398 | 4,267 | 5,444 |
| Investing CF | -1,507 | -1,607 | -2,583 | -2,167 | -2,501 | -1,689 |
| Financing CF | 597 | -506 | -344 | -803 | -1,343 | -2,340 |
| Free cash flowcalccash flow from operations − capital expenditures | 1,367 | 1,799 | 2,173 | 2,704 | 3,415 | 4,576 |
| Cash and equivalents | 1,677 | 1,728 | 1,470 | 1,897 | 2,304 | 3,726 |
| Per share & other | ||||||
| EPS ($) | 0.12 | 0.23 | 0.32 | 1.68 | 1.37 | 1.67 |
| BVPS ($) | 2.89 | 3.70 | 4.96 | 7.45 | 9.31 | 12.38 |
| P/E (x) | 932.9 | 574.4 | 242.7 | 84.1 | 154.8 | 91.7 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 198.4 | 175.5 | 98.1 | 108.9 | 113.1 | 61.7 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 38.04 | 35.07 | 15.65 | 18.96 | 22.78 | 12.38 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $4.11B+20.5% | $385M-32.7% | $277M-44.8% | $0.27 |
| 2026-06-30 | $3.99B+24.0% | $162M-54.7% | $298M-22.6% | $0.29 |
| 2026-03-31 | $3.77B+22.1% | $503M+11.5% | $469M+2.0% | $0.45 |
| 2025-12-31 † | $3.57B+20.7% | $443M+18.4% | $401M+4.4% | — |
| 2025-09-30 | $3.41B | $572M | $502M | $0.48 |
| 2025-06-30 | $3.22B | $358M | $385M | $0.37 |
| 2025-03-31 | $3.09B | $451M | $460M | $0.44 |
| 2024-12-31 † | $2.96B | $374M | $384M | — |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
15
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
14.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,824M × (1 − 2%) ÷ $12,777M × 100 = 14.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
11.49%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $160.43B ÷ ($160.43B + $1.49B) = 99.1%
e.g.Debt weight: $1.49B ÷ ($160.43B + $1.49B) = 0.9%
e.g.WACC: 11.6% × 99.1% + 5.0% × (1 − 2%) × 0.9% = 11.49%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 9.4%–14.0% and ROIC − WACC runs +0.0 to +4.6 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 11.49% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.20 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 11.55%
- Cost of debt
- 4.95% (no debt on record, using the risk-free rate)
- Tax rate
- 2% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 99% : 1%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 11.49%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.20 (price-derived adjusted beta. Raw β 1.30, R² 0.14, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.301 + 0.33 = 1.202
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.2 × 5.5% = 11.6%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
16
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
7.4%
Perpetual FCF growth: g = r − FCF ÷ EV = 11.5% − 4.1%
Past FCF growth (FY2020–FY2025)
+27.3%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+24.1%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $4.58B (operating CF − capex); enterprise value $112.46B = market cap $117.25B (latest close, 2026-11-04) + debt $1.49B − cash and short-term investments $6.28B; r = WACC of 11.5% using this page’s default assumptions (β 1.20, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$111.61B
FCF $4.58B ÷ (11.5% − 7.4%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 9.5% | 10.5% | 11.5% | 12.5% | 13.5% |
|---|---|---|---|---|---|
| 0% | 0.43x | 0.39x | 0.35x | 0.33x | 0.30x |
| 2% | 0.54x | 0.48x | 0.43x | 0.39x | 0.35x |
| 4% | 0.74x | 0.63x | 0.54x | 0.48x | 0.43x |
| 6% | 1.16x | 0.90x | 0.74x | 0.63x | 0.54x |
| 8% | 2.71x | 1.63x | 1.16x | 0.90x | 0.74x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
17
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 6.83x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -15.9%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 81%
Most profit comes from core operations.
- ✓
Days sales outstanding: 81 → 67 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-29
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$5,444M ÷ $1,748M = 3.11x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$1,824M ÷ $2,261M × 100 = 81%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,240M + $2,627M) ÷ 2 ÷ $13,278M × 365 = 67 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
18
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 81.9%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 18.1%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 290 of 416
- Beta (adjusted)
- 1.20
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 69% of covered companies have more
above 1 = swings more than the market
- 847.0M shares reported by 2,233 13F filers ÷ 1,034.0M shares outstanding on 2026-06-30. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-06 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-06-30)
19
Strengths & weaknessesSite analysis
Strengths
1. High recurring revenue
97% of 2025 revenue came from subscriptions.
Evidence: Form 10-K (FY2025)
2. Fast growth
Revenue grew from $4,519M (2020) to $13,278M (2025).
Evidence: Form 10-K (FY2025)
3. Large-customer expansion
Customers with ACV over $5M rose from 420 (2023) to 603 (2025).
Evidence: Form 10-K (FY2025)
Weaknesses
1. Acquisition-driven leverage
Took on a $4B term loan and $4B of notes in 2026 to fund the $7.6B Armis purchase.
Evidence: Form 10-Q (quarter ended 2026-09-30)
2. Falling 2026 profit
Net income for nine months 2026 was $1,044M versus $1,347M a year earlier.
Evidence: Form 10-Q (quarter ended 2026-09-30)
3. Stock-based dilution
Shareholders approved a larger equity plan share reserve in May 2026.
Evidence: Form 8-K (2026-05-22) — Item 5.02/5.07
20
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
91.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
2.9%
(Operating CF − capex) ÷ market cap
1. Enterprise AI platform
Workflow platform positioned for AI agents.
- What has to hold
- Customers adopt AI products.
- The other side
- Competition from large software vendors.
Evidence: Form 10-K (FY2025)
2. Buybacks
$5.0B added in January 2026 to ~$1.4B remaining.
- What has to hold
- Cash flow stays strong.
- The other side
- Acquisitions compete for cash.
Evidence: Form 8-K (2026-01-28) — Item 8.01 ($5B buyback authorization)
5-for-1 stock split in December 2025: per-share data and share counts for 2020–2023 restated. 2023 net income includes a large deferred tax benefit.
21
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
—
$6.28B vs. —
Interest coverage (operating income ÷ interest expense)
Not disclosed
Interest expense isn’t reported as a separate line.
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable every year
Net income stayed positive every year 2020–2025.
Source: Form 10-K (FY2025)
22
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
ServiceNow reports no material pending legal proceedings.
Company statement:
Based on Form 10-Q (quarter ended 2026-09-30), reviewed 2026-10-30. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
23
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
AI disruption
- Company disclosure (summarized from the 10-K)
- Competes with Microsoft, Oracle, SAP, Salesforce, Workday and new AI entrants.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2M&A & integration
Large acquisitions
- Company disclosure (summarized from the 10-K)
- Integrating Moveworks, Veza and Armis.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 3FX & interest rates
Currency
- Company disclosure (summarized from the 10-K)
- 37% of revenue comes from outside North America.
- Company’s stated mitigation
- To mitigate our risks associated with fluctuations in foreign currency exchange rates, we enter into foreign currency forward contracts to hedge a portion of our net outstanding monetary assets, liabilities and forecasted foreign currency denominated revenues and operating expenses.
- This site’s assessment
- Impact High / Likelihood Med
- 4Information security
Security breaches
- Company disclosure (summarized from the 10-K)
- A breach of its cloud platform could harm customers and reputation.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Low
- 5Labor & workforce
Workforce restructuring
- Company disclosure (summarized from the 10-K)
- 2026 workforce optimization using AI-driven efficiencies.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Low / Likelihood Med
24
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (2)
Further, to remain competitive, we may make significant investments in changing how we offer our products or services. Read more
These changes could include, among others, bundling certain products and services, modifying service delivery methods, or altering pricing models, such as incorporating more consumption-based pricing components into our offerings. However, customers may not be satisfied with these changes, and, as a result, we may not recover the cost or realize the anticipated benefits of our investments. With respect to service delivery methods, we entered into agreements with public cloud service providers to achieve greater operational and financial efficiencies. Our strategy of migrating an increasing portion of Company hosted instances to these providers depends on our ability to adequately prepare our operations to facilitate the migration, our customers’ willingness to use…
Additionally, our future effective tax rate could be impacted by changes in accounting principles or changes in federal, state or international tax laws or tax rulings and these changes may have a retroactive effect. Read more
For example, the One Big Beautiful Bill Act (“OBBBA”) was enacted on July 4, 2025, introducing a broad range of tax reform provisions that will affect our financial results. The U.S. Department of Treasury has broad authority to issue regulations and interpretative guidance that may significantly impact how we will comply with the law, which could affect our results of operations in the period issued. During 2025, multiple jurisdictions where the Company operates enacted legislation to implement the Organisation for Economic Co-operation and Development (“OECD”) Pillar 2 global minimum tax rules (generally imposing a 15% minimum effective tax rate on relevant groups). In…
No longer in the text (1)
We may not be able to protect or enforce our intellectual property rights.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Jan 29, 2026 ↗ with the 10-K filed Jan 30, 2025 ↗.
25
What to watch going forwardSite analysis
- Armis integration and security revenue.
- Subscription revenue growth and AI product adoption.
- Margins after acquisitions and severance.
- Buybacks versus debt.
26
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 14:37 (SEC EDGAR) · Source 10-K filed: January 29, 2026
Built on10-K FY2025 · filed 2026-01-29Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent ServiceNow’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.