NOW
ServiceNow, Inc.
Next earnings Jul 21, 2026 (after close) · consensus $0.86 EPS, $3.97B rev
Last earnings +2.9% on 2026-04-22
$106.32
▲ +6.35%$106.32▼ -48.01%
over 1Y
L $83.00H $208.94
Earnings Dividend Split Congress buy Congress sellGrouped by date · hover a pin to expand
Today+6.4%
1W+18.8%
1M-16.7%
3M+4.2%
YTD-27.9%
1Y-48.0%
Buy
Conviction
Horizon
Long (>12mo)
12-mo target
$•••
Street · 54 analysts
Buy
High-quality SaaS compounder: 21% revenue growth, $5.4B operating cash flow and RPO +27% — the 57x P/E flatters how cheap the cash flow is.
Revenue (FY2025) $13.3B · FY2025
The read
The fundamentals carry the rating, but the price is rich (~40% above our fair-value estimate) — a quality-at-a-price call. The case rests on the business, not the entry; patient buyers may wait for a pullback.
ServiceNow is a textbook quality-growth compounder, and the headline P/E of 56.9 badly misreads it. Revenue grew 20.9% to $13.3B — the fifth straight year of ~20%+ growth ($5.9B in FY2021 to $13.3B in FY2025) — at a 77.5% gross margin, while operating income rose 33.7%, outpacing revenue and proving real operating leverage. The crucial number is operating cash flow of $5.44B (+27.6%) against GAAP net income of just $1.75B: subscription accounting defers revenue, so reported net margin (13.2%) and ROE (13.5%) understate the true cash economics. Against $868M of capex, free cash flow is roughly $4.6B, putting the $99.4B market cap at ~22x FCF — a very reasonable multiple for a business compounding north of 20%.
The forward picture is well-supported by the filing, not just trailing results. Management discloses RPO of $28.2B as of December 31, 2025, up 27%, with current RPO up 25% — that is contracted, not-yet-recognized revenue more than double a full year of sales, giving unusual visibility into 2026 growth. The balance sheet is pristine: $13.0B equity against $13.1B liabilities (1.01x), cash up 61.7% to $3.73B, and the company returned $1.84B via buybacks while still building cash. R&D of $2.96B (22% of revenue) funds the AI Platform pivot management is positioning the company around.
AI-generated analysis, produced by our proprietary engine from SEC filing data.
Investment recommendation produced by TENK/calls (tenkcalls.com), Luxembourg. Completed Jun 21, 2026, 11:00 AM ET. Ratings & methodology: definitions · All recommendations to date: track record · Conflicts: disclosures. Not investment advice.
Financials · annual, by fiscal year
| Line item | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $5.90B | $7.25B | $8.97B | $11.0B | $13.3B |
| Gross profit | $4.54B | $5.67B | $7.05B | $8.70B | $10.3B |
| Operating income | $257M | $355M | $762M | $1.36B | $1.82B |
| Net income | $230M | $325M | $1.73B | $1.43B | $1.75B |
| Diluted EPS | $1.13 | $1.60 | $1.68 | $1.37 | $1.67 |
| Net margin | 3.9% | 4.5% | 19.3% | 13.0% | 13.2% |
Annual figures from SEC 10-K XBRL filings. Open the filing links below for full statement detail.
Key statistics
Valuation
Enterprise value$106B
EV / EBITDA41.3
EV / Sales8.0
EV / FCF23.1
P / FCF24.0
PEG (trailing)2.81
Earnings yield1.6%
FCF yield4.2%
Quality & risk
ROIC (est.)11.1%
Free cash flow$4.58B
Total debt$0.00
Net cash$3.73B
Altman Z-Score6.06 safe
Piotroski F-Score3/8
Capital returns
Buyback yield1.7%
Dividend yield (est.)—
Shareholder yield1.7%
Shares Δ YoY+407.8%
Computed from SEC XBRL annual figures + the current quote. EV and ROIC use long-term + current debt where filed; estimates, not investment advice.
Disclosure timeline
SEC · 8-Ks + reportsRecent disclosure tone has been improving.
- 8-K Officer / director change2026-05-22
Annual meeting vote results; board/officer change disclosed
- 8-K Material agreement2026-05-15
Entered new agreement creating financial obligation (debt financing)
- 10-Q Quarterly report2026-04-23
Q1'26: ~20% revenue growth and RPO momentum sustained
- 8-K Material agreement2026-04-22
Q1'26 results released alongside new financing agreement
- DEF 14A Proxy statement2026-04-06
Annual proxy: director elections, say-on-pay, auditor ratification
- 8-K Material agreement2026-04-01
New material agreement creating a financial obligation (financing)
- 8-K Reg FD disclosure2026-02-17
Reg FD disclosure (investor/business update)
- 8-K Officer / director change2026-02-11
Executive officer or director change announced
- 10-K Annual report2026-01-29
FY25 rev +21% to $13.3B, NI +23%, RPO +27%; 5-for-1 stock split
Recent filings
all on EDGAR ↗4Period ending 2026-06-152026-06-17open ↗4Period ending 2026-05-282026-06-01open ↗3Period ending 2026-05-212026-05-28open ↗144Filing2026-05-28open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗4Period ending 2026-05-212026-05-26open ↗8-KPeriod ending 2026-05-212026-05-22open ↗
Frequently asked
- Is ServiceNow, Inc. (NOW) a buy?
- NOW currently carries a Buy rating with 4/5 conviction, derived from its latest SEC filings. High-quality SaaS compounder: 21% revenue growth, $5.4B operating cash flow and RPO +27% — the 57x P/E flatters how cheap the cash flow is.
- What is NOW's fair value?
- A Modified-Graham model based on NOW's SEC fundamentals estimates a fair value of about $63.46. It is an estimate from reported earnings, not a price target.
- Is NOW overvalued or undervalued?
- Against a Modified-Graham fair-value estimate, NOW currently appears overvalued relative to its SEC-grounded earnings power.
- What is ServiceNow, Inc.'s quality score?
- NOW scores 63.79409807265013/100 (grade C+) on a SEC-grounded quality model spanning value, growth, profitability, financial health and momentum.
Sources: SEC EDGAR (CIK 0001373715, latest 10-Q filed 2026-04-23) · EODHD · Proprietary analysis · as of 6/21/2026, 3:00:00 PM.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.