ServiceNow, Inc. (NOW) Factsheet
ServiceNow, Inc. (NOW) Stock Analysis
Analysis from 10-Q filed 2025-10-30. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 11.6%. FCF margin 33.1%. D/E 0.0x. Source: 10-Q filed 2025-10-30.
| Metric | Value | Context |
|---|---|---|
| ROIC | 11.6% | Near cost of capital |
| FCF Margin | 33.1% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC 11.6% — Top 50% of sector peers. FCF margin 33.1% — Top 10%.
Explore ServiceNow, Inc.: Earnings History | Filings | ROIC Analysis
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_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: ServiceNow, Inc. earns 11.6% ROIC, Top 50% in Technology
ROIC TTM 11.6%, sector median 4.6%, Top 50%. DuPont: NOPAT margin 9.9% × asset turnover 0.6x. Gross margin 76.6%. Operating margin 13.4%. Source: 10-Q filed 2025-10-30.
| Metric | NOW | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.6% | Adequate | Above sector median of 4.6% |
| Return on Equity (ROE) | 15.2% | Good | Efficient use of shareholder equity |
| Gross Margin | 76.6% | Excellent | Strong pricing power |
| Operating Margin | 13.4% | Good | Moderate operational efficiency |
Cash Flow: ServiceNow, Inc. generates $4.6B FCF at 33.1% margin, positive NaN/8 quarters
FCF TTM $4.6B. FCF margin 33.1%, Top 10%. OCF/Net income 3.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.
| Metric | NOW | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 33.1% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $4.6B | Good | Positive cash generation |
| OCF/Net Income | 3.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: ServiceNow, Inc. at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-10-30.
| Metric | NOW | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: ServiceNow, Inc. trades at 61.7x earnings
P/E 61.7x. EV/Sales 7.4x. FCF yield 4.3%. Source: 10-Q filed 2025-10-30.
| Metric | NOW | Rating | Context |
|---|---|---|---|
| P/E Ratio | 61.7x | Warning | Premium valuation |
| EV/Sales | 7.4x | Adequate | Growth premium priced in |
| FCF Yield | 4.3% | Good | Lower cash yield |
Capital Allocation: ServiceNow, Inc. returns 3.5% shareholder yield
Total shareholder yield 3.5% (buyback 3.5%). Capital returned $3.8B TTM. Source: 10-Q filed 2025-10-30.
| Metric | NOW | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.5% | Good | Dividend + buyback yield combined |
| Buyback Yield | 3.5% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $3.8B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.6% | Top 50% | 2.5x above |
| Free Cash Flow Margin | 33.1% | Top 10% | 3.9x above |
| Gross Margin | 76.6% | Top 25% | 1.5x above |
| Operating Margin | 13.4% | Top 50% | 2.8x above |
| Return on Equity (ROE) | 15.2% | Top 50% | 3.0x above |
| P/E Ratio | 61.7x | N/A | - |
Financial Scorecard
| Metric | NOW | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 11.6% | Adequate | Top 50% of sector (median: 4.6%) |
| Free Cash Flow Margin | 33.1% | Excellent | Top 10% of sector (median: 8.5%) |
| Gross Margin | 76.6% | Excellent | Top 25% of sector (median: 51.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 61.7x | Warning | High expectations priced in |
| Free Cash Flow Yield | 4.3% | 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 11.6%. Sector median 4.6%. Source: 10-Q filed 2025-10-30.
Q: What is ServiceNow, Inc.'s Free Cash Flow Margin?
ServiceNow, Inc. (NOW) has a free cash flow margin of 33.1%, generating $4.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.
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 61.7x, which is above the sector median of N/A. EV/Sales 7.4x. FCF yield 4.3%. Source: 10-Q filed 2025-10-30.
Q: What is ServiceNow, Inc.'s revenue and earnings growth?
ServiceNow, Inc. (NOW) grew revenue by 21.7% year-over-year. EPS +14.1% YoY. Source: 10-Q filed 2025-10-30.
Q: Is ServiceNow, Inc. buying back stock?
ServiceNow, Inc. (NOW) repurchased $3.8 billion of stock over the trailing twelve months. This represents a buyback yield of 3.5%. Source: 10-Q filed 2025-10-30.
Q: How does ServiceNow, Inc. compare to competitors in Technology?
Compared to other companies in Technology, ServiceNow, Inc. (NOW) shows: ROIC 11.6%, sector median 4.6% (Top 50%). FCF margin 33.1%, sector median 8.5% (Top 10%). Gross margin 76.6%, 25.5pp 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.?
No quantitative warning flags fired for ServiceNow, Inc. (NOW) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.
Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q1 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.