ServiceNow, Inc. (NOW) Factsheet

ServiceNow, Inc. (NOW) Stock Analysis

Analysis from 10-Q filed 2026-10-28. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 6.6%. FCF margin 30.8%. D/E 0.6x. Source: 10-Q filed 2026-10-28.

Metric	Value	Context
ROIC	6.6%	Below expectations
FCF Margin	30.8%	Strong cash generation
Debt/Equity	0.6x	Moderate leverage

ROIC 6.6% — Top 50% of sector peers. FCF margin 30.8% — Top 25%.

Explore ServiceNow, Inc.: Earnings History | Overview

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for NOW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: ServiceNow, Inc. earns 6.6% ROIC, Top 50% in Technology

ROIC TTM 6.6%, sector median 4.4%, Top 50%. DuPont: NOPAT margin 6.9% × asset turnover 0.6x. Gross margin 73.1%. Operating margin 9.7%. Source: 10-Q filed 2026-10-28.

Metric	NOW	Rating	Context
Return on Invested Capital (ROIC)	6.6%	Warning	Above sector median of 4.4%
Return on Equity (ROE)	11.7%	Adequate	Moderate equity returns
Gross Margin	73.1%	Excellent	Strong pricing power
Operating Margin	9.7%	Adequate	Moderate operational efficiency

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Cash Flow: ServiceNow, Inc. generates $4.8B FCF at 30.8% margin, positive NaN/8 quarters

FCF TTM $4.8B. FCF margin 30.8%, Top 25%. OCF/Net income 3.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-10-28.

Metric	NOW	Rating	Context
Free Cash Flow Margin	30.8%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$4.8B	Good	Positive cash generation
OCF/Net Income	3.7x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: ServiceNow, Inc. at 0.6x leverage

Debt/Equity 0.6x. Total debt $7.5B, cash & investments $4.6B. Source: 10-Q filed 2026-10-28.

Metric	NOW	Rating	Context
Debt to Equity	0.6x	Good	Moderate leverage
Net Cash Position	$-2.9B	Warning	Net debt position

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Valuation: ServiceNow, Inc. trades at 72.3x earnings

P/E 72.3x. EV/Sales 7.0x. FCF yield 4.5%. Source: 10-Q filed 2026-10-28.

Metric	NOW	Rating	Context
P/E Ratio	72.3x	Warning	Premium valuation
EV/Sales	7.0x	Adequate	Growth premium priced in
FCF Yield	4.5%	Good	Lower cash yield

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Capital Allocation: ServiceNow, Inc. returns 2.7% shareholder yield

Total shareholder yield 2.7% (buyback 2.7%). Share count +400.0% YoY. Capital returned $2.8B TTM. Source: 10-Q filed 2026-10-28.

Metric	NOW	Rating	Context
Total Shareholder Yield	2.7%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.7%	Adequate	Active share repurchases
Share Count Change (YoY)	400.0%	Warning	Net dilution from issuance/SBC
Total Capital Returned (TTM)	$2.8B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	6.6%	Top 50%	1.5x above
Free Cash Flow Margin	30.8%	Top 25%	3.0x above
Gross Margin	73.1%	Top 25%	1.4x above
Operating Margin	9.7%	Top 50%	2.0x above
Return on Equity (ROE)	11.7%	Top 50%	1.9x above
P/E Ratio	72.3x	N/A	-

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Financial Scorecard

Metric	NOW	Rating	Sector Context
Return on Invested Capital (ROIC)	6.6%	Warning	Top 50% of sector (median: 4.4%)
Free Cash Flow Margin	30.8%	Excellent	Top 25% of sector (median: 10.3%)
Gross Margin	73.1%	Excellent	Top 25% of sector (median: 51.0%)
Debt to Equity Ratio	57.6%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	72.3x	Warning	High expectations priced in
Free Cash Flow Yield	4.5%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is ServiceNow, Inc.'s Return on Invested Capital (ROIC)?

ServiceNow, Inc. (NOW) has a trailing twelve-month Return on Invested Capital (ROIC) of 6.6%. The 8-quarter median ROIC is 9.9% with a declining trend. Sector median 4.4%. Source: 10-Q filed 2026-10-28.

Q: What is ServiceNow, Inc.'s Free Cash Flow Margin?

ServiceNow, Inc. (NOW) has a free cash flow margin of 30.8%, generating $4.8 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-10-28.

Q: What is ServiceNow, Inc.'s P/E ratio and how does it compare to peers?

ServiceNow, Inc. (NOW) trades at a P/E ratio of 72.3x, which is above the sector median of N/A. EV/Sales 7.0x. FCF yield 4.5%. Source: 10-Q filed 2026-10-28.

Q: How much debt does ServiceNow, Inc. have?

ServiceNow, Inc. (NOW) has a debt-to-equity ratio of 0.6x with total debt of $7.5 billion. Net debt $2.9 billion. Source: 10-Q filed 2026-10-28.

Q: What is ServiceNow, Inc.'s revenue and earnings growth?

ServiceNow, Inc. (NOW) grew revenue by 21.8% year-over-year. EPS -16.0% YoY. Source: 10-Q filed 2026-10-28.

Q: Is ServiceNow, Inc. buying back stock?

ServiceNow, Inc. (NOW) repurchased $2.8 billion of stock over the trailing twelve months. This represents a buyback yield of 2.7%. Share count +400.0% YoY. Source: 10-Q filed 2026-10-28.

Q: How does ServiceNow, Inc. compare to competitors in Technology?

Compared to other companies in Technology, ServiceNow, Inc. (NOW) shows: ROIC 6.6%, sector median 4.4% (Top 50%). FCF margin 30.8%, sector median 10.3% (Top 25%). Gross margin 73.1%, 22.1pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with ServiceNow, Inc.?

Quantitative warning flags for ServiceNow, Inc. (NOW): 1) ROIC declining -7.9% over 8 quarters. Source: 10-Q filed 2026-10-28.

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Data Source: Data sourced from 10-Q filed 2026-10-28. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.