NOW$864.04
$863.48
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Performance
Key Stats
AI NOW Summary
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Powered by LiveAIOverall Analysis
Strong BuyServiceNow demonstrates robust fundamental strength with solid growth and profitability, supported by strong thematic tailwinds in digital transformation and AI. While recent technical indicators show a slight upward momentum, the overall trend remains positive, making it an attractive long-term investment.
Thematic
ServiceNow is exceptionally well-positioned to benefit from key secular growth trends in AI-driven digital workflows, cloud computing, and enterprise automation.
Fundamental
ServiceNow exhibits strong revenue growth, healthy profitability, and a robust balance sheet, with consistent positive EPS surprises.
Technical
ServiceNow is trading in a strong uptrend, with its price consistently above key moving averages. However, some short-term indicators suggest potential for a minor consolidation.
| Factor | Score |
|---|---|
| Digital Transformation & Workflow Automation | 95 |
| Artificial Intelligence Integration | 90 |
| Cloud Computing Adoption | 88 |
| Industry Penetration | 80 |
| Regulatory & Data Privacy Landscape | 75 |
| Factor | Score |
|---|---|
| Valuation | 50 |
| Profitability | 80 |
| Growth | 88 |
| Balance Sheet Health | 90 |
| Cash Flow | 85 |
| Earnings Per Share (EPS) Performance | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 70 |
| Volume Analysis | 75 |
| Price Performance | 80 |
| Short-term Indicators | 75 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent EPS Beats
ServiceNow (NOW) has consistently beaten EPS estimates over the last several quarters, with surprise percentages ranging from 5.35% to 16.06% in the observed periods. This suggests strong operational execution and earnings generation capabilities.
Strong Cash Position and Free Cash Flow
The company exhibits a robust financial position with increasing cash and cash equivalents and a significant and growing free cash flow (e.g., $3.375 billion in FY24). This provides financial flexibility for investments, debt reduction, or shareholder returns.
Bearish Points (6)
High Valuation Multiples
The company's Price-to-Earnings (P/E) ratio (TTM: 135.35, 2024: 154.1) and Price-to-Sales (P/S) ratio (TTM: 23.3) are significantly high. This indicates that the stock is trading at a premium, which could lead to higher volatility and a greater risk of price correction if growth expectations are not met.
Fluctuating Net Margins
While revenue has grown, net margins have shown some fluctuation, with a dip to 10.0% in Q2 2024, down from 15.4% in Q3 2024 and 13.0% in FY24. This suggests potential sensitivity to operational costs or pricing pressures.
Calendar
July 2025
24
Next Earnings Date
H: $4.56
A: $4.27
L: $3.70
H: 3.39B
A: 3.35B
L: 3.29B
Profile
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform, an AI platform for digital transformation machine learning, robotic process automation, process mining, analytics, and low-code/no-code development tools. It also 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; and field service management applications. In addition, the company offers human resources, legal, and workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. Further, ServiceNow, Inc. develops and operates a mobile-enabled manufacturing application. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, IT services, technology, and Telecom sectors through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
Seasonals
Price Target
1139.84 USD
The 39 analysts offering 1 year price forecasts for NOW have a max estimate of 1300.00 and a min estimate of 734.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
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A leading provider of cloud-based enterprise software, including CRM, sales automation, and a strong platform (Lightning) with workflow capabilities that compete with ServiceNow's broader enterprise platform offerings.
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A broad technology conglomerate, Microsoft competes with ServiceNow through its Dynamics 365 (CRM/ERP), Power Platform (low-code/no-code, workflow automation), and Azure cloud services, often serving similar enterprise clients.
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Offers IT service management (Jira Service Management), project management (Jira Software), and collaboration tools (Confluence) that directly compete with ServiceNow's ITSM and broader workflow automation solutions, particularly for development and IT teams.
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Specializes in cloud-based human capital management (HCM) and financial management software. Workday directly competes with ServiceNow in the HR Service Delivery (HRSD) segment, aiming to automate and streamline HR workflows.