NOW
ServiceNow, Inc.
Technology • CIK: 0001373715
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Market Cap
$158.82B
P/E (TTM)
90.6x
Rev Growth (TTM)
+20.9%
Net Margin (TTM)
13.2%
FCF Yield (TTM)
2.9%
FCF Margin (TTM)
34.1%
Filing Intelligence
6.0/10
10-K filed Jan 29, 2026 • FYNone
Executive Summary
Strong revenue growth driven by new and existing customers, with subscription revenue comprising 97% of total revenue.. High customer retention is evidenced by a consistent 98% renewal rate and...
Key Concerns
- ●Significant judgment is required in evaluating the terms of customer contracts for appropriate revenue recognition and determining distinct...
- ●The allocation of purchase price in business combinations requires significant estimates for intangible assets, with actual results...
- ●Cybersecurity Threats and Technology Evolution (high)
Key Strengths
- ●Strong revenue growth driven by new and existing customers, with subscription revenue comprising 97% of total revenue.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$4.5B
Q4 '25
$2.0B+251%
Q3 '25
$569M+8%
FCF Margin
TTM34.1%
Q4 '2556.1%+236%
Sector: 9.1%Top 10%
OCF Margin41.0%
OCF/NI3.11x
CapEx Coverage6.3x
FCF Yield2.9%
FCF Growth (2Y)+28%
Cash Conversion Cycle
24 days
DSO: 48+DIO: 0−DPO: 25
Capital Allocation & Returns
Growth Focused
Total Shareholder YieldTTM
TTM1.2%
Div Yield0.0%
+Buyback (TTM)1.2%
Prioritizing reinvestment over distributions
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$4.5B
Stock Repurchases (TTM)$1.8B
Capital Return / FCF40.6%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
12.9%
Stable
+0.0% YoY-0.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.6%
8Q: 10.5%
Asset Turnover
0.60x
8Q: 0.60x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 6.4% ≈ 12.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
6.62x
8Q:6.75x
-68.2%
Invested Cap Turn
2.32x
8Q:2.44x
-33.8%
CapEx Intensity
15.2%
8Q:16.5%
CapEx/Depreciation
1.18x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $13.3B | $3.6B↑4.7% | $3.4B↑6.0% | $3.2B↑4.1% | $3.1B↑4.4% | $3.0B↑5.7% | $2.8B↑6.5% | $2.6B↑0.9% | $2.6B |
Operating Income | $1.8B | $443.0M↓22.6% | $572.0M↑59.8% | $358.0M↓20.6% | $451.0M↑20.6% | $374.0M↓10.5% | $418.0M↑74.2% | $240.0M↓27.7% | $332.0M |
Net Income | $1.7B | $401.0M↓20.1% | $502.0M↑30.4% | $385.0M↓16.3% | $460.0M↑19.8% | $384.0M↓11.1% | $432.0M↑64.9% | $262.0M↓24.5% | $347.0M |
Operating Cash Flow | $5.4B | $2.2B↑175.3% | $813.0M↑13.5% | $716.0M↓57.3% | $1.7B↑2.6% | $1.6B↑143.7% | $671.0M↑8.2% | $620.0M↓53.8% | $1.3B |
Free Cash Flow | $4.5B | $2.0B↑251.5% | $569.0M↑8.2% | $526.0M↓63.4% | $1.4B↑4.8% | $1.4B↑192.5% | $469.0M↑34.4% | $349.0M↓70.5% | $1.2B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
90.6x
Volatile
8Q: 404.1x-29629%
High PEG ratio (4.0x) suggests expensive for growth
Valuation Lenses
Earnings
90.6x
vs – sector
Cash Flow
33.7x
EV/FCF vs –
Growth-Adj
4.0xPEG
Expensive for growth
Quality-Adj
7.0P/E per %ROIC
ROIC: 12.9%
Shareholder Returns
Dividend
–
Buyback
1.2%
Total Yield
1.2%
Market Cap$158.82B
EV$152.77B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
85/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Above Avg
16.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
12.9%
8Q:–
Flat
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 10.6%
Asset Turnover: 0.60x
Earnings Quality
Cash Conversion
3.11x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin77.5%
Capital Efficiency
Invested Capital Turnover2.32x
Working Capital
Cash Conversion Cycle24 days
Growth Quality & Momentum
Quality Growth
Growth Quality Score
80/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
20.9%
OpInc Growth YoY
18.4%
EPS Growth YoY
22.6%
FCF 3Y CAGR
27.8%
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
77.5%
Operating
13.7%
Above Avg in sector
Net
13.2%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+21.0 pts
FCF: 34.1% | Net: 13.2%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $6.29B
Interest Coverage
–
+Net cash position: $6.29B
Balance sheet risk & solvency analysis