ServiceNow, Inc. (NOW) Factsheet
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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.
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 |
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 |
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 |
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 |
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 |
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 | - |
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 |
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.
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.
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