ServiceNow Inc (NOW)
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ServiceNow grows more than 20 percent quarter after quarter, renews 98 percent of its contracts and sits on $28.2 billion of contracted future revenue — yet its market value has more than halved since mid-2025, from $215 billion to about $89.5 billion, and our in-house turnaround scanner ranks the stock no. 2 in the U.S. selection (turnaround check 7 of 8, as of July 18, 2026). We read the annual reports (10-K) and the quarterly report (10-Q) as of March 31, 2026: earnings per share growing just 2 percent, stock-based compensation larger than all of operating income, a single partner supplying 12 percent of revenue — and a $7.8 billion acquisition funded partly with a $4.0 billion loan that comes due after six months. Not investment advice — just the question of whether a halved price is the same thing as a bargain.
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This stock currently matches 7 of our scanner strategies — each hit links to the scanner.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
Sells AIServiceNow verkauft KI als kostenpflichtige Produktstufen: Now Assist und AI Agents sind laut 10-K 2025 integrale, teils verbrauchsabhängig bepreiste Bestandteile des Abo-Angebots quer durch alle Produktlinien.
View the full file — quotes, sources, reviewed filings
„AI. Our Platform's integrated AI offering, Now Assist, empowers organizations to boost productivity by providing a range of AI tools. These tools operate autonomously with human oversight and adhere to predefined guardrails."
KI. Das integrierte KI-Angebot unserer Plattform, Now Assist, versetzt Organisationen in die Lage, ihre Produktivität mit einer Reihe von KI-Werkzeugen zu steigern. Diese Werkzeuge arbeiten autonom unter menschlicher Aufsicht und halten sich an vordefinierte Leitplanken.
„In addition to subscription offerings, certain AI and data solutions include a consumption-based pricing component that governs when customer usage exceeds the fixed number of service credits available under the customer's subscription agreement."
Zusätzlich zu den Abo-Angeboten enthalten bestimmte KI- und Datenlösungen eine verbrauchsabhängige Preiskomponente, die greift, wenn die Nutzung eines Kunden die feste Zahl der in seinem Abo-Vertrag enthaltenen Service-Guthaben übersteigt.
„Our ambition to become the defining AI enterprise software company of the 21st century is the driving force behind our overall business strategy"
Unser Anspruch, das prägende KI-Unternehmenssoftware-Unternehmen des 21. Jahrhunderts zu werden, ist die treibende Kraft hinter unserer gesamten Geschäftsstrategie
Rated on July 19, 2026 · How the Rating Is Built
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.37 | 28.90 | 2,957 | 21.30 | 13.00 | 1,635 | 1,382 |
| 2025: Q1 | 0.44 | 31.50 | 3,088 | 18.60 | 14.90 | 1,677 | 1,472 |
| 2025: Q2 | 0.37 | 45.90 | 3,215 | 22.40 | 12.00 | 716 | 526 |
| 2025: Q3 | 0.48 | 15.40 | 3,407 | 21.80 | 14.70 | 813 | 578 |
| 2025: Q4 | 0.38 | 4.20 | 3,568 | 20.70 | 11.20 | 2,238 | 2,000 |
| 2026: Q1 | 0.45 | 2.60 | 3,770 | 22.10 | 12.40 | 1,670 | 1,529 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
A subscription model with 97 percent recurring revenue, a 98 percent renewal rate three years running, RPO of $28.2 billion (up 27 percent as of 12/31/2025) and 603 customers above $5 million in annual contract value — the substance of one of the most stable software businesses on the market (10-K 2025).
Revenue up 21 percent to $13.278 billion in 2025, up 22 percent to $3.770 billion in Q1 2026 — with no visible break in the series; per the 10-K, the company expects subscription revenue to keep rising in absolute dollars in 2026.
Q1 2026 net income up just 2 percent ($469 million) despite 22 percent revenue growth; stock-based compensation of $1.955 billion in 2025 above operating income of $1.824 billion; subscription gross margin under pressure from AI compute (cost of subscription revenues up 46 percent in Q1 2026).
About $11.4 billion of acquisitions in eleven months, including Armis at $7.8 billion cash with a $4.0 billion term loan due 10/16/2026; ASR buybacks at an average $107.97 — roughly 20 percent above the price level of July 18, 2026 — while the share count barely falls (10-Q as of 03/31/2026).
A single U.S. federal channel partner stood for 12 percent of total revenue in Q1 2026 and 19 percent of receivables (03/31/2026) — the company's most important single revenue source hangs on the U.S. federal budget (10-Q, Note 2).
Turnaround check 7 of 8 (rank 2 of the U.S. selection, as of July 18, 2026): revenue, margin direction, cash flow, interest coverage, the 50-day line, relative strength and institutional buying are positive — but insiders sold on a net basis (14 sales, 6 purchases in twelve months), and a trailing P/E near 58 is no bargain price even after the halving.
ServiceNow is the unusual case of a turnaround candidate without an operating crisis: the subscription business grows more than 20 percent, renews 98 percent of its contracts and has $28.2 billion of revenue contractually secured — what crashed is the valuation alone, from $215 billion to about $89.5 billion of market value. Behind it stand real reasons: stalling GAAP earnings, stock compensation above operating income, a federal concentration risk and an $11 billion shopping spree that ends in a six-month loan. Whoever invests here buys a first-class business and carries, in exchange, the open AI question, the integration load and a P/E near 58 on reported earnings. Not investment advice.
- NOW made the research list as rank 2 of our in-house turnaround scanner (U.S. selection, turnaround check 7 of 8, as of July 18, 2026) — part of our series on the top 20 of this selection.
- Scanner metrics (P/E, P/S, P/B, Piotroski, Altman Z, relative strength, insider/institutional data) use trailing twelve-month figures as of July 18, 2026.
- Price and market value figures (~$89.50, ~$89.5 billion) from the July 18, 2026 feed, sanity-checked against 1,035 million weighted shares per the quarterly report 10-Q as of March 31, 2026; analyses are evergreen, daily prices are not a buy argument.
About the Company
ServiceNow, Inc. bietet eine cloudbasierte Lösung für digitale Workflows in Nordamerika, Europa, dem Nahen Osten, Afrika, dem asiatisch-pazifischen Raum und international an.
| Employees | 29,187 |
|---|---|
| Headquarters | Santa Clara, CA |
| Website | servicenow.com |
| IPO Date | 29. Jun 2012 |
| Next Earnings | 22. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| William R. McDermott | Chairman & CEO | 1962 |
| Gina M. Mastantuono | President & CFO | 1970 |
| Amit K. Zavery | President, Chief Product Officer & COO | 1972 |
| Frederic B. Luddy | Founder & Director | 1955 |
| Jacqueline P. Canney | Chief People & AI Enablement Officer | 1968 |
| Paul Fipps | President of Global Customer Operations | 1973 |
| Hossein Nowbar | President, Secretary & Chief Legal Officer | – |
| Danielle Fontaine | CAO & Corporate Controller | – |
| Pat Casey | CTO & Executive VP of Dev Ops | – |
| Darren Yip | Head of Investor Relations | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 20, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.