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ServiceNow
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NYSE: NOW Technology IT 🔎 Screen
S&P 500
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$107.3B
Market Cap
80.7
P/E
1.74
PEG
8.3%
ROCE
11.8%
ROE
0.64
D/E
10.8%
OPM
-42.8%
% from 52W High
22
α RS
🔍 NOW is showing a multi-screen setup because it matches 4 of 39 tracked screener presets, Sector RRG has Technology in the Improving quadrant with the trail still strengthening, an ECS of 64 last quarter, and it has maintained a 15-day Stage 2 momentum persistence. The main caution: the Margin Expansion preset's Backtest win rate is only 47.4%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG ECS Momentum Streaks Backtest
Sources
Conviction 4/39 · Technology in Improving quadrant · ECS 64 · Stage 2 streak: 15d · Backtest win rate 47.4%
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🌏 Global Investor Returns
Currency-adjusted total returns for NOW including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

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.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding NOW
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Manager Shares Value % of Fund Period
Tiger Global Management Tiger Global Management LLC 1.50M $156.8M 0.69% Mar 2026
Jim Simons Renaissance Technologies LLC 1.21M $126.1M 0.20% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.987B
+24% YoY (22.5% cc)
Subscription Revenue
$3.877B
+24.5% YoY (23% cc)
Operating Margin (Non-GAAP)
29.5%
+3pp vs guidance
Free Cash Flow Margin
16%
n/m
What Went Right
  • Q2 subscription revenues grew 23% cc to $3.877B, beating the high end by 150bps; cRPO grew 21.5% cc, 200bps above guidance.
  • ServiceNow AI ACV surpassed $1B and AI net new ACV accelerated over 40% QoQ; agentic AI customers in production grew 9x in nine months.
  • Demand was broad-based with 123 deals over $1M in net new ACV, up 40% YoY, and security/risk plus ITOM appeared in 16 and 18 of the top 20 deals, respectively.
What to Watch
  • Full-year subscription revenue guidance was raised only $15M at midpoint despite Q2 outperformance, partly due to US federal on-prem revenue pulled forward from Q3.
  • FY26 subscription gross margin is guided to 81%, reflecting near-term pressure from hyperscaler partnerships and faster AI adoption.
  • Sales headcount rose sharply in Q2, with management attributing it to M&A, security/risk hiring, and timing rather than a step-change in cost structure.
Management Guidance
  • Q3 2026 subscription revenue: $3.975B-$3.980B, +20% cc YoY
  • Q3 2026 cRPO growth: +20% cc YoY
  • Q3 2026 non-GAAP operating margin: 31%
  • FY 2026 subscription revenue: $15.755B-$15.770B, +21% cc YoY
  • FY 2026 non-GAAP operating margin: 31.5%; free cash flow margin: 35%
  • FY 2026 subscription gross margin: 81%
Investor Lens
The thesis is stronger after this call. Q2 delivered broad beats across cRPO, operating margin, and AI ACV, supported by 123 deals over $1M and a 98% renewal rate. The AI Control Tower and security/risk portfolio are expanding wallet share and pulling through ITSM and ITOM. Management raised full-year subscription revenue and reiterated the rule-of-60 path, though gross margin pressure and federal revenue timing are worth monitoring.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Outstanding beat: 23% cc subscription growth, AI ACV passes $1B.
Revenue
Subscription revenues were $3.877B in Q2, up 24.5% reported and 23% in constant currency. Total revenues were $3.987B, up 24% YoY. cRPO was $13.2B, up 21.5% cc, and RPO was $29.0B, up 22% cc.
Profitability
GAAP net income was not discussed on the call. Non-GAAP operating margin was 29.5%, 300 basis points above guidance, and free cash flow margin was 16% for the quarter.
Margins
Non-GAAP operating margin of 29.5% beat guidance by 300bps, helped by revenue outperformance and marketing spend timing. FY26 subscription gross margin is guided to 81%, reflecting hyperscaler adoption and AI, while FY26 non-GAAP operating margin is guided to 31.5%.
Balance Sheet
No cash, debt, or CapEx figures were provided on the call. Free cash flow margin was 16% for Q2, and full-year free cash flow margin guidance remains 35%.
Key Risks
Management flagged that Q2 federal strength included some on-prem revenue pulled forward from Q3, and the full-year guide retains back-half conservatism. Gross margin is under near-term pressure from hyperscaler partnerships and AI adoption. Analysts also questioned rising sales headcount and AI pricing competition, though management cited 20%-30% uplift on AI-native SKUs.
Outlook
Q3 subscription revenue is guided to $3.975B-$3.980B (+20% cc), with cRPO growth of 20% cc and non-GAAP operating margin of 31%. FY26 subscription revenue was raised to $15.755B-$15.770B (+21% cc), with operating margin of 31.5% and free cash flow margin of 35%.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-22
Q2 results exceeded guidance with 23% subscription revenue growth and strong AI and cybersecurity momentum. AI ACV surpassed $1 billion, customer deployments rose 9x, and operating margin reached 29.5%. Full-year guidance was raised, with continued robust demand across all segments.
Q1 2026 Q1 2026 2026-04-22
Q1 2026 results exceeded guidance with 19% subscription revenue growth and strong AI-driven demand. Guidance for 2026 was raised, reflecting the impact of the Armis acquisition and rapid AI adoption, while capital returns and platform innovation remain priorities.
Q4 2025 Q4 2025 2026-01-28
Q4 and full-year 2025 results exceeded expectations, with strong subscription revenue and free cash flow growth, robust AI-driven product adoption, and accelerated deal activity. 2026 guidance calls for 19.5–20% subscription revenue growth, margin expansion, and continued investment in AI and security.
Q3 2025 Q3 2025 2025-10-29
Q3 2025 saw record subscription revenue growth of 20.5% year over year, strong operating and free cash flow margins, and robust AI-driven deal momentum. Full-year guidance was raised across revenue, margin, and cash flow, with a five-for-one stock split announced. AI and security segments showed exceptional growth.
Q2 2025 Q2 2025 2025-07-23
Q2 2025 delivered strong revenue and margin beats, driven by rapid AI adoption and robust workflow expansion. Guidance for 2025 was raised, with continued momentum across all segments and major customer wins. The company remains on track for its 2026 targets.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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