NOW

ServiceNow, Inc.

Technology • CIK: 0001373715

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Market Cap
$108.42B
P/E (TTM)
61.7x
Rev Growth (TTM)
+21.7%
Net Margin (TTM)
12.6%
FCF Yield (TTM)
4.3%
FCF Margin (TTM)
33.1%

LATEST EARNINGS

Q1 2026
26 days ago
View source
Revenue
$3.77B
Net Income
$469.00M
+2.0%
EPS
$0.45
+2.3%
Gross
75.0% -4.0%
Operating
13.5% -1.0%
Net
12.4% -2.5%
  • Subscription revenues grew 22% year-over-year to $3,671 million, and 19% in constant currency, beating the high end of guidance.
  • Total revenues reached $3,770 million, also up 22% year-over-year (19% in constant currency).
  • Current remaining performance obligations (cRPO) grew 22.5% year-over-year (21% in constant currency) to $12.64 billion.
  • Remaining performance obligations (RPO) grew 25% year-over-year (23.5% in constant currency) to $27.7 billion.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.6B
Q1 '26
$1.5B-24%
Q4 '25
$2.0B+251%
FCF Margin
TTM33.1%
Q1 '2640.6%-28%
Sector: 8.5%Top 10%
OCF Margin38.9%
OCF/NI3.09x
CapEx Coverage6.8x
FCF Yield4.3%
FCF Growth (2Y)+29%
Cash Conversion Cycle
23 days
DSO: 48+DIO: 0DPO: 26

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.5%
Div Yield0.0%
+
Buyback (TTM)3.5%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$4.6B
Stock Repurchases (TTM)$3.8B
Capital Return / FCF81.5%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
11.6%
Stable
-0.0% YoY-0.8%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
9.9%
8Q: 9.9%
Asset Turnover
0.60x
8Q: 0.60x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 6.0%11.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.59x
8Q:6.69x
-29.9%
Invested Cap Turn
2.19x
8Q:2.40x
-43.0%
CapEx Intensity
12.6%
8Q:16.5%
CapEx/Depreciation
0.96x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Revenue
$14.0B
$3.8B5.7%
$3.6B4.7%
$3.4B6.0%
$3.2B4.1%
$3.1B4.4%
$3.0B5.7%
$2.8B6.5%
$2.6B
Operating Income
$1.9B
$503.0M13.5%
$443.0M22.6%
$572.0M59.8%
$358.0M20.6%
$451.0M20.6%
$374.0M10.5%
$418.0M74.2%
$240.0M
Net Income
$1.8B
$469.0M17.0%
$401.0M20.1%
$502.0M30.4%
$385.0M16.3%
$460.0M19.8%
$384.0M11.1%
$432.0M64.9%
$262.0M
Operating Cash Flow
$5.4B
$1.7B25.4%
$2.2B175.3%
$813.0M13.5%
$716.0M57.3%
$1.7B2.6%
$1.6B143.7%
$671.0M8.2%
$620.0M
Free Cash Flow
$4.6B
$1.5B23.5%
$2.0B251.5%
$569.0M8.2%
$526.0M63.4%
$1.4B4.8%
$1.4B192.5%
$469.0M34.4%
$349.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
61.7x
Volatile
8Q: 412.4x-27021%
High PEG ratio (4.4x) suggests expensive for growth
Valuation Lenses
Earnings
61.7x
vs sector
Cash Flow
22.2x
EV/FCF vs
Growth-Adj
4.4xPEG
Expensive for growth
Quality-Adj
5.3P/E per %ROIC
ROIC: 11.6%
Shareholder Returns
Dividend
Buyback
3.5%
Total Yield
3.5%
Market Cap$108.42B
EV$102.86B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
83/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
15.2%
8Q:
Return on Invested Capital (ROIC)Top 25%
11.6%
8Q:
Flat
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 9.9%
Asset Turnover: 0.60x

Earnings Quality

Cash Conversion

3.09x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin76.6%

Capital Efficiency

Invested Capital Turnover2.19x

Working Capital

Cash Conversion Cycle23 days

Growth Quality & Momentum

Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
21.7%
OpInc Growth YoY
11.5%
EPS Growth YoY
14.1%
FCF 3Y CAGR
29.3%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue
Sustainability Index: 8.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
76.6%
Operating
13.4%
Above Avg in sector
Net
12.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+20.5 pts
FCF: 33.1% | Net: 12.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $5.19B
Interest Coverage
+Net cash position: $5.19B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis