ServiceNow, Inc. (NOW) AI Stock Analysis

ServiceNow, Inc. provides enterprise cloud computing solutions designed to automate, manage, and streamline services across global organizations. Its core Now platform incorporates workflow automation, artificial intelligence, machine learning, robotic process automation, and process mining. The company offers applications across IT service management, strategic portfolio management, and IT operations management to connect and oversee physical and cloud infrastructures. Beyond IT, ServiceNow delivers tools for integrated risk management, human resources, legal, workplace service delivery, customer service management, and field service management. The company also offers the App Engine and Automation Engine to support custom workflows and platform security.

Between FY2021 and FY2025, ServiceNow increased annual revenue from $5.90B to $13.28B, logging a 20.9% expansion in FY2025 and a 5-year revenue CAGR of 24.1%. Annual net income grew from $230.0M in FY2021 to $1.75B in FY2025, with net margins widening from 3.9% to 13.2%. Operating margin also expanded over this timeframe, reaching 13.7% in FY2025 from 4.4% in FY2021. For the trailing twelve months, revenue reached $14.73B with an operating margin of 4.1%. In the latest quarter ended June 30, 2026, quarterly revenue grew 24.0% year-over-year, while quarterly earnings declined 21.9%.

As of June 30, 2026, ServiceNow held $4.66B in cash and short-term investments against total debt of $8.45B, resulting in net debt of $3.79B. The company recorded shareholders' equity of $12.52B, total assets of $31.67B, a current ratio of 0.70, and a debt-to-equity ratio of 0.68. Operating cash flow stood at $5.44B in FY2025, delivering $4.58B in free cash flow. Capital deployment in FY2025 included $868.0M for capital expenditures and $1.84B allocated to share buybacks, while share count increased 1.7% over 5 years.

ServiceNow trades at a trailing P/E of 88.7x and a forward P/E of 27.8x, compared to the median of its S&P 500 Technology peers at 30.8x and 20.3x, respectively. Its enterprise value stands at $149.34B with an EV/EBITDA multiple of 42.7x, above the peer group median of 19.5x. The price-to-sales ratio is 10.0x versus the peer median of 6.2x, while its PEG ratio sits at 1.01. Over the past year, the stock returned -20.6% compared to a 16.8% return for the S&P 500. Over 5 years, it returned 7.0% versus 83.0% for the index.

Wall Street analysts carry 35 Strong Buy, 10 Buy, 2 Hold, 1 Sell, and 1 Strong Sell recommendations. The mean price target is $152.23, which is 7.2% above the last close of $141.97. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $4.07 on revenue of $16.22B. For the next fiscal year, 44 analysts forecast EPS of $5.01 and revenue of $19.27B. ServiceNow beat EPS estimates in 2 of the last 4 quarters, with its next earnings report scheduled for October 28, 2026.

This page is an AI-written research summary of ServiceNow, Inc. (NOW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: NOW income statement, NOW balance sheet, NOW key metrics, NOW analyst forecast, NOW chart. See the NOW stock overview for the latest quote and news.