NOW

ServiceNow

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Software - Application

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/22/26

Business Summary

ServiceNow operates a subscription-based enterprise software model, embedding its applications deeply into customer workflows and mission-critical processes. Revenue is generated primarily through recurring software subscriptions, which drive predictability and high switching costs once deployed across large organizations. Its moat is built on integration depth, platform breadth, and the operational disruption costs clients would face if migrating away. As customers standardize internal processes on its applications, the company converts workflow centrality into durable cash flow and pricing power.

VALUATION

P/E

49.8

Market Cap ($M USD)

$86,001

Forward P/E

16.5

PEG

0.7

PRICE TO SALES

6.5

PRICE TO BOOK

6.6

EV / EBITDA

27.2

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$1.69

Next Year EPS Growth Estimate

$5.02

Next Year Revenue Growth Estimate

18.50%

Return on Equity (ROE)

13.50%

Operating Margin

13.70%

Debt-to-Equity

0.2

Piotroski F-Score

4

Altman Z-Score

5

Return on Invested Capital (ROIC)

10.40%%

Current Ratio

1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

ServiceNow screens as a high-quality growth compounder trading at a valuation that no longer reflects hyper-growth euphoria but still embeds confidence. A trailing P/E of 49.8 looks expensive at first glance, yet the Forward P/E of 16.5 combined with a PEG Forward of 0.7 signals that earnings acceleration is expected and potentially underappreciated. The Altman Z-Score of 5 indicates extremely low bankruptcy risk, reinforcing balance sheet safety, while a 13.70% Debt/Equity ratio keeps leverage contained. This is not a distressed mispricing—it is a quality franchise being priced as a maturing grower, and the compression from 49.8 to 16.5 forward earnings suggests the market expects a step-change in profitability.

AI Exposure / Tech Reliance

Operating in the Software - Application industry within the Technology sector, the company sits directly in the workflow automation and enterprise digitization layer where AI integration is becoming mission-critical. Software platforms with scalable architectures are natural beneficiaries of AI-driven productivity enhancements. The durability of enterprise software demand provides structural resilience against rapid technological shifts.

The Bull Case

A GARP investor buys this because the internal return profile is solid and the balance sheet is clean. ROIC at 10.40% paired with an 18.50% Return on Equity shows the company is generating respectable returns on capital without financial engineering, supported by modest leverage at 13.70% Debt/Equity. Operating Margin of 13.50% demonstrates underlying operating discipline, while a Piotroski F-Score of 4 signals stable, if not elite, financial strength. With a PEG Forward of 0.7 and Forward P/E of 16.5, you are effectively paying a market multiple for a business that still commands premium profitability metrics in enterprise software—an attractive asymmetry if execution holds.

The Bear Case

The red flags are subtle but real. A Piotroski F-Score of 4 is mediocre, not strong, and suggests that fundamental momentum is not firing on all cylinders. A Current Ratio of 1 leaves little short-term liquidity cushion, and while Debt/Equity at 13.70% is not alarming, it reduces flexibility if operating conditions tighten. The trailing P/E of 49.8 implies the stock has been priced for excellence, and any miss relative to the Days Until Next Earnings Report on 04/22/26 could trigger multiple compression. Add in a minimal TTM Yield of 0.2 with no dividend support, and shareholders are fully exposed to execution risk without income downside protection.

Market Sentiment & Smart Money

Short Interest %

2.70%

Analyst Consensus

1.33

Average Analyst Price Target

$185.86

Institutional Ownership %

90.80%

1-Year Beta

0.92

Insider Buying % (6 Mo)

0.20%%

Distance to 52-Week High

39.30%%

Distance to 52-Week Low

102.20%%