What are the main concerns in ServiceNow, Inc.'s latest SEC filing?

The analysis identified 4 key concerns: Significant judgment is required in evaluating the terms of customer contracts for appropriate revenue recognition and determining distinct performance obligations.; The allocation of purchase price in business combinations requires significant estimates for intangible assets, with actual results potentially differing from these estimates.; Cybersecurity Threats and Technology Evolution (high).

What are the top risks for ServiceNow, Inc. (NOW)?

The top risks identified in the 10-K filing are: Cybersecurity Threats and Technology Evolution, Intense Competition and Rapid Technological Change, Regulatory and Data Privacy Compliance. The company faces significant risks related to cybersecurity, driven by advanced AI and geopolitical factors, and intense market competition. Evolving regulatory landscapes, particularly concerning data privacy, add further complexity, suggesting a deteriorating risk profile.

NOW - Comprehensive Filing Intelligence

FYNone•10-K•Filed Jan 29, 2026

6.0/10

Filing Health:GOOD

Solid fundamentals with minor concerns to monitor

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 significant growth in large-scale customers ($5M+ ACV).. Increased number of customers with ACV > $5M by 20% (603 in 2025 vs. 502 in 2024).

Top Concerns

!Significant judgment is required in evaluating the terms of customer contracts for appropriate revenue recognition and determining distinct performance obligations.
!The allocation of purchase price in business combinations requires significant estimates for intangible assets, with actual results potentially differing from these estimates.
!Cybersecurity Threats and Technology Evolution (high)
!Intense Competition and Rapid Technological Change (high)

Top Positives

+Strong revenue growth driven by new and existing customers, with subscription revenue comprising 97% of total revenue.

Analysis Dimensions

Our 5-pass AI analysis examines this filing across multiple dimensions. Each dimension score is derived from direct analysis of SEC filing text.

Narrative Intelligence

8.0/10

Management tone is confidently optimistic with focus on increased headcount and associated costs to support subscription growth, including regulated markets..

Full analysis includes: tone changes vs prior quarter, margin driver breakdown, forward guidance analysis, strategic priorities.

Accounting Quality

6.0/10

Earnings quality shows aggressive accounting practices.

Full analysis includes: reserve and allowance changes, non-recurring item analysis, stock-based compensation impact, disclosure concerns.

Hidden Liabilities

Off-balance sheet risk is low with 0 in identified exposure.

Full analysis includes: cloud and purchase commitments, VIE/SPE exposure, covenant compliance status, refinancing risk assessment.

Risk Landscape

3.0/10

Overall risk profile shows cybersecurity threats and technology evolution as primary concern.

Full analysis includes: 8 risk categories with severity, new vs escalated risks, management response assessment, risk trend analysis.

Segment Performance

7.0/10

Segment health analysis.

Full analysis includes: segment-by-segment revenue breakdown, geographic concentration risk, customer concentration analysis, segment margin trends.