ServiceNow (NOW) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

ServiceNow

NYSE•Technology•Software - Application

$138.47-1.35(-0.01%)After hours

Market Cap

$141.26B

P/E

84.6x

P/S

9.6x

P/B

11.3x

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.

How this company scores

GoodMetricSide Score: 71/100

Strongest: Cash & Earnings Quality (25/25); weakest: Balance Sheet & Red Flags (13/25).

Profitability13/25

Growth20/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality25/25

Strengths

Growing revenueRising free cash flowLow leverageCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 84.6x5y range 61.8x – 566.9x

Currently below its 20-quarter median.

P/S · 9.6x5y range 7.8x – 22.2x

Currently below its 20-quarter median.

P/B · 11.3x5y range 9.3x – 35.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 12.6% — watch for continued compression, which may signal competitive or cost pressure.

Leverage Risk

Watch

Debt-to-equity has risen 218.6% recently — increasing financial risk even if the current ratio is manageable.

Price & Volume

Market Cap $141.26B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $14.73B
Q. Revenue: $3.99B
TTM EBITDA: $2.75B
TTM Op. Income: $1.68B
Q. Op. Income: $162.00M
TTM Net Income: $1.67B
Q. Net Income: $298.00M
EPS: $0.29
Shares Out.: $1.03B

$14.73B in TTM revenue grew 22.2% YoY, reaching $3.99B last quarter. TTM EBITDA of $2.75B and TTM operating income of $1.68B show growth is flowing through to the bottom line. TTM net income of $1.67B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 70.7%
EBITDA Margin: 14.3%
Op. Margin: 4.1%
Net Margin: 7.5%

Op. margin of 4.1% is down 7.1% YoY — costs are rising relative to revenue. Net margin at 7.5% and gross margin of 70.7% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 64% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 84.6x
P/S Ratio: 9.6x
P/B Ratio: 11.3x

At 84.6x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 9.6x and P/B of 11.3x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 34% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $31.67B
Cash: $2.50B
Long-Term Debt: $5.43B
Book Value: $12.52B
D/E Ratio: 0.4
Debt/EBITDA: 9.6

With $31.67B in assets and $5.43B in long-term debt, D/E is 0.4and book value is $12.52B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $587.00M
TTM Free Cash Flow: $4.58B
FCF Margin: 31.1%
FCF / Net Income: 2.7

TTM FCF of $4.58B on $587.00M in operating cash flow. The FCF / Net Income ratio of 2.7x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 19% — a weakening trend.