NOW ServiceNow, Inc. - Fundamental Analysis
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NOW Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Software - Application
Current Price
Live
$127.31
Analyst Target
$219.32
+72.3%
Upside
52W High
$239.62
52W Low
$126.86
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 17, 2026
Market cap
$134.33B
P/E
77.16
ROE
16.8%
Profit margin
13.7%
Debt/Equity
0.21
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
68%
Analysis Accuracy
ServiceNow (NOW) shows a stable financial health with a Piotroski F-Score of 6/9, indicating moderate strength, though the absence of an Altman Z-Score limits distress risk assessment. The company exhibits strong profitability metrics, including a 78.05% gross margin and consistent double-digit revenue and earnings growth, but trades at a premium valuation with a P/E of 77.16 versus sector average of 110.19. Despite a bullish analyst consensus (strong_buy), insider selling activity and weak technical trends (0/100) counterbalance optimism. The stock is significantly above the Graham Number ($20.11) and near the intrinsic value estimate ($48.67), suggesting limited margin of safety at current levels.
Key Strengths
Strong and consistent revenue growth (21.8% YoY), outpacing sector average of 19.00%
Exceptional gross margin of 78.05%, reflecting high pricing power and low cost of sales
Solid ROE of 16.81% and manageable Debt/Equity ratio of 0.21, indicating efficient capital use
Impressive earnings surprise history, with 24 out of 25 quarters beating estimates, averaging +11.0% in the last four
Bullish analyst recommendation (strong_buy) with a high target price of $219.32, implying ~72% upside
Key Risks
Elevated valuation metrics: P/E of 77.16 and Price/Sales of 10.60 signal potential overvaluation relative to fundamentals
Missing key financial data (EV, ROIC, cash/debt figures) limits comprehensive health assessment
Insider selling trend: 8 sell transactions in last 6 months with no buys, signaling leadership skepticism
Weak technical trend score of 0/100 and recent price decline (-39.8% 1Y) suggest ongoing market skepticism
Current price ($127.31) is 532% above Graham Number ($20.11), offering minimal margin of safety for value investors
AI Fair Value Estimate
Based on comprehensive analysis
$150.0
+17.8% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
49
Moderate
40
75
70
60
0
AI Verdict
Cautiously optimistic with valuation and insider concerns
Key drivers: High growth and profitability, Premium valuation, Bullish analyst outlook, Bearish insider activity, Stable but not strong financial health (Piotroski 6)
Confidence
70%
Value
40/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 31.23 is more reasonable than current P/E of 77.16
Watchpoints
- Current P/E of 77.16 is high
- Price/Sales of 10.60 above sector average
- Stock trades at 532% of Graham Number
Future
75/100
Ref Growth rates
Positives
- 21.8% YoY revenue growth
- 15.9% YoY earnings growth
- Q/Q EPS growth of 16.2%
- Consistent earnings beat history
Watchpoints
No urgent risks highlighted.
Past
70/100
Ref Historical trends
Positives
- 24 out of 25 quarters beat EPS estimates
- Long-term earnings surprise trend averaging +11% in recent quarters
- Historical EPS growth acceleration (YoY EPS growth +134.1%)
Watchpoints
- 1Y price return of -39.8% indicates recent underperformance
Health
60/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Piotroski F-Score of 6/9 (Stable)
- Debt/Equity of 0.21 indicates low leverage
- Operating margin of 16.79% is healthy
Watchpoints
- Current ratio of 1.06 and quick ratio of 0.89 suggest tight liquidity
- Missing Altman Z-Score and ROIC limits health visibility
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend policy
- Dividend strength score of 0/100
- Payout ratio of 0.00%
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$127.31
Analyst Target
$219.32
Upside/Downside
+72.3%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for NOW and closest competitors.
Updated 2026-01-16
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
NOW
ServiceNow, Inc.
Primary
|
+22.6% | +52.2% | -39.8% | -33.9% | -18.6% | -10.2% |
|
PANW
Palo Alto Networks, Inc.
Peer
|
+209.3% | +164.3% | +5.9% | -4.2% | +2.3% | -0.7% |
|
ARM
Arm Holdings plc
Peer
|
+82.0% | +82.0% | +3.3% | -23.2% | -7.6% | +1.2% |
|
ADI
Analog Devices, Inc.
Peer
|
+120.9% | +72.5% | +52.5% | +25.6% | -8.9% | -3.1% |
|
INTU
Intuit Inc.
Peer
|
+46.2% | +42.5% | -9.6% | -27.3% | -17.3% | -15.7% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
77.16
Forward P/E
31.23
PEG Ratio
N/A
P/B Ratio
11.69
P/S Ratio
10.6
EV/Revenue
10.19
EV/EBITDA
51.69
Market Cap
$134.33B
Profitability
Profit margins and return metrics
Profit Margin
13.66%
Operating Margin
16.79%
Gross Margin
78.05%
ROE
16.81%
ROA
5.65%
Growth
Revenue and earnings growth rates
Revenue Growth
+21.8%
Earnings Growth
+15.9%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+16.2%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
0.21
Low debt
Current Ratio
1.06
Good
Quick Ratio
0.89
Poor
Cash/Share
$5.21
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-28
$N/A
2025-10-29
$0.96
+13.0% surprise
2025-07-23
$0.82
+14.6% surprise
2025-04-23
$0.81
+5.4% surprise
Technology Sector Comparison
Comparing NOW against 149 companies in the Technology sector
(10 bullish, 66 neutral, 73 bearish)
P/E Ratio
77.16
This Stock
vs
90.97
Sector Avg
-15.2%
(Discount)
Return on Equity (ROE)
16.81%
This Stock
vs
-8.13%
Sector Avg
-306.8%
(Below Avg)
Profit Margin
13.66%
This Stock
vs
-7.75%
Sector Avg
-276.2%
(Weaker)
Debt to Equity
0.21
This Stock
vs
0.76
Sector Avg
-72.2%
(Less Debt)
Revenue Growth
21.8%
This Stock
vs
56.87%
Sector Avg
-61.7%
(Slower)
Current Ratio
1.06
This Stock
vs
3.33
Sector Avg
-68.1%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
NOW
ServiceNow, Inc.
|
NEUTRAL | $134.33B | 77.16 | 16.8% | 13.7% | $127.31 | |
|
PANW
Palo Alto Networks, Inc.
|
NEUTRAL | $130.8B | 118.77 | 15.3% | 11.7% | $187.66 | |
|
ARM
Arm Holdings plc
|
NEUTRAL | $122.93B | 154.33 | 11.3% | 17.1% | $115.75 | |
|
ADI
Analog Devices, Inc.
|
BEARISH | $149.42B | 55.85 | 7.9% | 23.0% | $306.07 | |
|
INTU
Intuit Inc.
|
NEUTRAL | $151.81B | 37.37 | 22.0% | 21.2% | $545.29 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-05 | MASTANTUONO GINA | President | Sale | 415 | $352,750 |
| 2025-11-28 | JACKSON LAWRENCE | Director | Sale | 265 | $214,708 |
| 2025-11-28 | MASTANTUONO GINA | President | Sale | 417 | $336,936 |
| 2025-11-28 | CHAMBERLAIN PAUL EDWARD | Director | Sale | 300 | $242,400 |
| 2025-11-18 | TZITZON NICHOLAS | Officer | Sale | 522 | $431,736 |
| 2025-11-18 | FIPPS PAUL | Officer | Sale | 305 | $249,353 |
| 2025-11-18 | ELMER RUSSELL S. | General Counsel | Sale | 191 | $160,155 |
| 2025-11-18 | CANNEY JACQUELINE P | Officer | Sale | 239 | $200,549 |
| 2025-11-17 | TZITZON NICHOLAS | Officer | Stock Award | 166 | - |
| 2025-11-17 | ELMER RUSSELL S. | General Counsel | Stock Award | 177 | - |
| 2025-11-17 | MCBRIDE KEVIN THOMAS | Officer | Stock Award | 48 | - |
| 2025-11-17 | FIPPS PAUL | Officer | Stock Award | 127 | - |
| 2025-11-17 | MCDERMOTT WILLIAM R | Chief Executive Officer | Stock Award | 832 | - |
| 2025-11-17 | MASTANTUONO GINA | President | Stock Award | 319 | - |
| 2025-11-17 | CANNEY JACQUELINE P | Officer | Stock Award | 194 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
STRONG_BUY
41 analysts
Oppenheimer
2026-01-13
Outperform
Outperform
Stifel
2026-01-09
Buy
Buy
Wells Fargo
2026-01-08
Overweight
Overweight
Macquarie
2026-01-08
Neutral
Neutral
Piper Sandler
2026-01-05
Overweight
Overweight
RBC Capital
2026-01-05
Outperform
Outperform
BTIG
2025-12-22
Buy
Buy
DA Davidson
2025-12-16
Buy
Buy
Guggenheim
2025-12-16
Sell
Neutral
Keybanc
2025-12-15
Sector Weight
Underweight
Past News Coverage
Recent headlines mentioning NOW from our newsroom.
Newest → oldest
No matching news yet.