ServiceNow, Inc. specializes in delivering cloud-based solutions designed to streamline and automate critical business services for organizations across the globe. Its flagship "Now Platform" serves as the foundation, leveraging technologies such as workflow automation, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). This platform also incorporates robust features like performance analytics, electronic service catalogs, configuration management systems, data benchmarking, encryption capabilities, and various collaboration and development tools. ServiceNow offers a comprehensive suite of applications built on this platform, catering to diverse enterprise needs. Key offerings include IT Service Management (ITSM), which streamlines support for employees, customers, and partners; IT Business Management (ITBM); IT Operations Management (ITOM), designed to integrate and manage both physical and cloud-based IT infrastructure; and IT Asset Management (ITAM) for automating asset lifecycles. Its Security Operations solution facilitates seamless integration between internal systems and third-party security tools. Beyond IT, the company provides solutions for Governance, Risk, and Compliance (GRC) to enhance organizational resilience, along with tools for Human Resources, Legal, and general workplace service delivery, including dedicated safe workplace applications. Other specialized applications cover Customer Service Management (CSM) and Field Service Management (FSM). To further extend functionality, ServiceNow offers App Engine for custom development and IntegrationHub to connect workflows across various applications. The company also provides a range of professional services, industry-specific solutions, and comprehensive customer support. ServiceNow's diverse client base spans critical sectors such as government, financial services, healthcare, telecommunications, manufacturing, and education, alongside various IT services, technology, oil and gas, and consumer product industries. The company reaches these customers through a combination of its direct sales force and a network of resale partners. Notably, a strategic alliance with Celonis assists clients in pinpointing and prioritizing business processes ripe for automation. Established in 2004 and headquartered in Santa Clara, California, the company originally operated as Service-now.com before rebranding to ServiceNow, Inc. in May 2012.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 1.69
Total Equity: $12.96B
Shares: 1,047,000,000
Total Debt: $2.40B
Cash: $3.73B
EBITDA: $3.00B
Total Debt: $2.40B
Cash: $3.73B
Revenue: $13.28B
Revenue: $13.28B
Revenue: $13.28B
Total Equity: $12.96B
Tax Rate: 22.7%
Equity: $12.96B
Total Debt: $2.40B
Cash: $3.73B
Current Liabilities: $10.44B
Long-Term Debt: $2.29B
Total Debt: $2.40B
Total Equity: $12.96B
Shares: 1,047,000,000
Shares: 1,047,000,000
CapEx: -$868.00M
Shares: 1,047,000,000
Stock Price: $89.52
Net Income: $1.75B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
ServiceNow is a textbook high-quality enterprise software business. Revenue compounded from $5.90B (2021) to $13.28B (2025), a ~22% CAGR, while operating margin expanded from 4.4% to 13.7% and free cash flow scaled from $1.79B to $4.58B - revenue more than doubled and FCF nearly tripled, demonstrating real operating leverage on a stable ~78% gross margin base. Net cash of $3.88B plus $4.58B/yr FCF means the company is fully self-funding and survival math is a non-issue (Altman Z 5.23). Earnings quality is pristine: OCF/NI of 5.2x, accruals -14.8% of assets, Beneish M -2.9 - cash backs the earnings comfortably and there are no mechanical red flags. Diluted share count crept from 1.02B to 1.05B over five years (0.8% CAGR), so per-share value is genuinely protected despite SBC running at 14.7% of revenue. Buybacks only offset 39.2% of SBC, meaning capital return is essentially a dilution-mop rather than a true shareholder yield, but at this dilution pace it doesn't impair quality. Insider tape is benign - awards and tax-withholding, with only ~$1.9M in small sales over 12 months; no directional signal either way.
Verify before trusting this (5)
- Net revenue retention, cRPO growth, and large-customer ($1M+ ACV) count trajectory in latest 10-K/transcripts to confirm durability of the 20%+ growth.
- Source of the 2023 net income spike (deferred tax valuation allowance release?) and normalized tax rate going forward.
- Customer concentration and federal/public-sector exposure (any single-customer or contract-vehicle risk).
- SBC composition and grant trends - whether per-employee grant levels are stable as headcount grows.
- AI/Now Assist monetization disclosures to confirm pricing power and durability of GM in the high-70s.
ServiceNow is a Fortress-quality compounder, which justifies a premium multiple, but premium and cheap are different things. At $98.34 and ~$92B market cap on a business doing roughly 20%+ revenue growth with expanding FCF margins, the stock is trading on a high-teens to low-20s EV/sales and a forward FCF yield in the low single digits. That is consistent with the bull narrative being substantially embedded in the price, not a discount to it. The e2e synthesis itself flagged 'High Conviction Required' - i.e. no clean cheapness signal even after a quality-adjusted lens.
Verify before trusting this (5)
- Next quarter cRPO and subscription revenue growth - any deceleration below ~20% is a multiple-compression risk
- Operating and FCF margin trajectory ex-SBC
- Concrete AI/Now Assist attach and pricing disclosures in the transcript
- Net new ACV from non-ITSM workflows to test platform expansion
- Any change in SBC as a percent of revenue or buyback pace
The tape is nominally neutral with a -3.4% S&P drawdown and VIX 18, but the cross-currents under the surface are exactly what NOW needs: a violent AI selloff is hitting chips and unprofitable AI names while CIO survey data and a Jefferies IT-exec poll explicitly flag ServiceNow as a top pick. NOW ripped ~9% on the session as a direct beneficiary of that rotation, and beta 0.93 means the broader risk-off pulse barely scrapes the name. The platform-monopoly narrative (strong, durable) is being reinforced in real time by spending intentions data, not undermined by it.
Verify before trusting this (4)
- Whether the software-over-semis rotation persists past 2-3 sessions or unwinds
- Any crack in the AI-monetization story that spreads from chips into application software
- Next print's net new ARR and AI SKU attach rate to defend the premium
- Target revision direction over the next 2 weeks after the rip
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 26, 2026 7:24pm (11d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.9B | $7.2B | $9.0B | $11.0B | $13.3B |
| Cost of Revenue | $1.4B | $1.6B | $1.9B | $2.3B | $3.0B |
| Gross Profit | $4.5B | $5.7B | $7.1B | $8.7B | $10.3B |
| Operating Expenses | $4.3B | $5.3B | $6.3B | $7.3B | $8.5B |
| Operating Income | $257.0M | $355.0M | $762.0M | $1.4B | $1.8B |
| Net Income | $230.0M | $325.0M | $1.7B | $1.4B | $1.7B |
| EBITDA | $749.0M | $768.0M | $1.6B | $2.2B | $3.0B |
| EPS | $0.23 | $0.32 | $1.70 | $1.38 | $1.69 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 26, 2026 7:21pm (12d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.7B | $1.5B | $1.9B | $2.3B | $3.7B |
| Total Current Assets | $5.2B | $6.7B | $7.8B | $9.2B | $9.9B |
| Total Assets | $10.8B | $13.3B | $17.4B | $20.4B | $26.0B |
| Current Liabilities | $4.9B | $6.0B | $7.4B | $8.4B | $10.4B |
| Long-Term Debt | $1.5B | $1.5B | $1.5B | $1.5B | $2.3B |
| Total Liabilities | $7.1B | $8.3B | $9.8B | $10.8B | $13.1B |
| Total Equity | $3.7B | $5.0B | $7.6B | $9.6B | $13.0B |
| Retained Earnings | -$4.0M | $338.0M | $2.1B | $3.5B | $5.2B |
Cash Flow (Annual)
Last updated: Jun 25, 2026 12:23am (13d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $2.2B | $2.7B | $3.4B | $4.3B | $5.4B |
| Capital Expenditure | -$399.0M | -$550.0M | -$694.0M | -$852.0M | -$868.0M |
| Free Cash Flow | $1.8B | $2.2B | $2.7B | $3.4B | $4.6B |
| Acquisitions (net) | -$785.0M | -$91.0M | -$279.0M | -$113.0M | -$1.1B |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | $0 | -$538.0M | -$696.0M | -$1.8B |
| Net Change in Cash | $53.0M | -$257.0M | $429.0M | $406.0M | $1.4B |
Analyst Estimates (Annual)
Last updated: Jun 26, 2026 7:21pm (12d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$19.2B $18.9B – $19.4B
|
$22.8B $22.8B – $22.9B
|
$26.4B $26.1B – $27.0B
|
$30.4B $30.1B – $31.1B
|
| EBITDA |
$6.8B $6.6B – $6.8B
|
$8.0B $8.0B – $8.0B
|
$9.3B $9.2B – $9.5B
|
$10.7B $10.6B – $10.9B
|
| Net Income |
$5.0B $4.5B – $5.5B
|
$6.3B $4.1B – $8.4B
|
$7.6B $7.5B – $7.8B
|
$9.5B $9.4B – $9.8B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 26, 2026 7:24pm (11d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +22.9% | +23.8% | +22.4% | +20.9% |
| Gross Profit Growth | +24.9% | +24.3% | +23.4% | +18.4% |
| Operating Income Growth | +38.1% | +114.6% | +79.0% | +33.7% |
| Net Income Growth | +41.3% | +432.6% | -17.7% | +22.7% |
| EBITDA Growth | +2.5% | +107.6% | +39.6% | +34.7% |
Insider Trading (Recent)
Last updated: Jun 26, 2026 7:24pm (11d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-15 | Yuan Eric S. | A-Award | 2,747.00 | $0.00 | $0 |
| 2026-05-28 | Briggs Teresa | S-Sale | 1,595.00 | $108.70 | $173,377 |
| 2026-05-21 | Yuan Eric S. | 0.00 | $0.00 | $0 | |
| 2026-05-21 | LUDDY FREDERIC B | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | Briggs Teresa | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | Chamberlain Paul Edward | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | Jackson Lawrence | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | BOSTROM SUSAN L | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | Quinlan Larry | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-21 | Sands Anita M | A-Award | 3,260.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 5,602.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | F-InKind | 3,012.00 | $95.07 | $286,351 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 2,350.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | F-InKind | 1,264.00 | $95.07 | $120,168 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 1,595.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | F-InKind | 858.00 | $95.07 | $81,570 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 5,602.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 2,350.00 | $0.00 | $0 |
| 2026-05-15 | Mastantuono Gina | M-Exempt | 1,595.00 | $0.00 | $0 |
| 2026-05-15 | Nowbar Hossein | M-Exempt | 2,857.00 | $0.00 | $0 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
The raw numbers here are genuinely impressive in a way the prior models underweight. Quarterly revenue marched from $2.63B (Q2 '24) to $3.77B (Q1 '26) — that's 43% growth over seven quarters, and the most recent YoY is 20.9% at a $15B+ run-rate. Gross margin sits at 77.5%, FCF was $4.58B on $13.28B revenue (34.5% FCF margin), and operating CF grew to $5.44B. The "decelerating" tag on revenue confidence is technically true (sequential growth rates are easing) but the absolute dollar adds per quarter are accelerating ($150M, $130M, $190M, $160M, $200M sequentially) — that's not a saturation pattern, that's a company still finding new dollars at scale. Net income lumpiness (NI fell from $1.73B in 2023 to $1.43B in 2024 before rebounding to $1.75B in 2025) is tax-driven noise around a deferred tax asset release, not operating deterioration — operating income nearly tripled from $355M (2022) to $1.82B (2025), which is the real signal.
Now the contradiction I want to flag: the prior models can't decide what ServiceNow is. The rule-based classifier calls it "mature earner" (wrong — 21.7% revenue CAGR and 30.1% FCF CAGR are not mature). Pre-flight correctly tags it "high-growth." Market Forces says "fairly valued." Synthesis says "High Conviction Required" citing a 7.0x P/S — but the tile shows P/S of 11.96x and EV/Revenue of 11.92x, so somebody's math is stale or wrong. At $89.52 and $92.3B market cap on $13.28B revenue, P/S is ~7.0x, which means either the share count or the price in the canonical metrics tile is out of date. This matters enormously: 7x sales for a 21% grower with 34% FCF margins is not demanding, while 12x would be. I'll trust the market cap / revenue arithmetic — 7x P/S, ~20x EV/FCF on trailing, closer to 16x on forward FCF if growth holds. That is not a premium multiple for this asset; it's a discount to where NOW historically traded (often 15-20x sales).
The contrarian case: every bull point assumes Microsoft doesn't successfully bundle Copilot-driven workflow automation into M365 E5 at marginal cost, and assumes ServiceNow's seat-based pricing model survives agentic AI (which collapses seat counts). The narrative-economics layer flags this correctly — "AI optionality priced as near-term revenue driver" — but I'd go further: if agents replace 30% of licensed users over five years, NOW's net revenue retention (currently ~98%) cracks below 100% and the entire platform-expansion thesis inverts. Also worth noting: current ratio 0.95 is tight for a company with $3.73B cash (large deferred revenue liability is the offset, which is fine, but it means working capital can't absorb a downturn shock cleanly). Insider data is uninformative — the cluster of identical 3,260-share awards on 2026-05-21 is a standard board grant, not a signal. And the dates themselves (2026-06-15 transactions, Q1 2026 already reported) suggest this dataset is forward-stamped or I'm reading it in mid-2026; either way, $89.52 vs. a 52-week peak materially higher implies a meaningful drawdown has already happened, which the pre-flight notes as "53% drawdown."
I dissent from the synthesis "High Conviction Required" hedge and from Market Forces' "fairly valued" verdict. At $89.52 with 21% revenue growth, 34.5% FCF margins, $4.58B FCF growing 30% CAGR, and a 7x P/S that's compressed roughly 60% from peak, the risk-reward has shifted favorably even if you haircut AI optionality to zero. A simple reverse-DCF: $4.58B FCF growing 15% for five years then 8% terminal at 9% discount → ~$135B equity value, ~$130/share. Even at 10% growth tapering to 5%, you get ~$95-100. The downside case (Microsoft bundling wins, NRR drops to 95%, FCF growth halves to 12% CAGR) still supports $70-75. Asymmetry favors longs. The models are anchored on the 2021-22 peak multiple as the reference frame and treating any premium as su
GPT Critique
ServiceNow's recent financial performance presents a compelling story of growth and profitability. The company's revenue has shown a significant upward trend, climbing from $2.63 billion in Q2 2024 to $3.77 billion in Q1 2026, marking a 43% growth over seven quarters. This is not just a nominal increase; it reflects strong operational momentum, underscored by a robust gross margin of 77.5% and an impressive free cash flow of $4.58 billion, representing a 34.5% FCF margin. Such metrics highlight the company's ability to generate substantial cash from its operations while maintaining profitability. ServiceNow's operating cash flow has also increased to $5.44 billion, indicating efficient cash management and a strong operational backbone.
I align with Claude Opus's assessment that the revenue confidence label of "decelerating" does not fully capture the company's growth momentum. While sequential growth rates might show minor easing, the dollar value increases per quarter demonstrate that ServiceNow continues to capitalize on its market opportunities effectively. However, I diverge from Opus's view regarding the P/S ratio discrepancies. Opus points out a potentially outdated valuation metric, suggesting a market misunderstanding or outdated data. My analysis supports the notion that a P/S ratio closer to 7x adequately reflects the company's growth and profit metrics, particularly against the backdrop of a technology sector re-rating.
Opus challenges the narrative that ServiceNow is a "mature earner," and rightly so. With a revenue CAGR of 21.7% and an FCF CAGR of 30.1%, ServiceNow remains in a high-growth phase. I concur with Opus that labeling the company as mature is misleading and overlooks its growth trajectory and expansion potential. Moreover, Opus's contrarian viewpoint on potential threats from Microsoft and AI-driven market dynamics is valid. The risk of Microsoft integrating advanced workflow automation tools into its suite could indeed challenge ServiceNow's pricing power and market share, necessitating vigilance from investors.
A skeptic might argue that the current valuation is precarious, given macroeconomic uncertainties and the potential for increased competition. They would highlight the tight current ratio of 0.95, suggesting limited room for error in working capital management should a market downturn occur. Additionally, the skepticism around AI's immediate revenue contribution is a reasonable concern, questioning whether ServiceNow's growth projections adequately account for these competitive pressures.