Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of ServiceNow, Inc.

NOW · NYSE · Technology

Fundamental quality

ATTRACTIVE

85

out of 100

ServiceNow, Inc. grows profitably: it increases revenue at double digits (24% a year) without giving up profitability (net margin 11.3%). On fundamental quality it scores 85 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its profitability (net margin 11.3%). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

ServiceNow sells cloud software that helps large enterprises automate their internal workflows — from IT support to human resources and customer service. It runs on subscriptions, so its revenue is recurring and highly predictable.

What will shape its future

  • Land-and-expand: selling more modules to companies already on its platform is its main growth lever.
  • Embedding AI into its products to justify higher prices.
  • Competition from enterprise-software giants like Microsoft and Salesforce.

Breakdown by area

I.Growth
95

EPS growth: 61.7% · Revenue growth: 24%

II.Profitability
75

Net margin: 11.3% · ROE: 13.3% · ROIC: 6.8%

III.Financial health
85

Net debt/EBITDA: 1.82x · FCF: 31.1%

Source: SEC EDGAR · TTM through 30/06/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its profitability drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 47%
ROEbeats 43%
Growthbeats 74%
Cash generationbeats 82%
Less debtbeats 31%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

ServiceNow, Inc. strengths

  • Growing earnings per share (61.7% annualized).
  • Excellent free-cash-flow generation (FCF margin of 31.1%): profit turns into real cash.
  • High gross margin (74.8%), pointing to pricing power.
  • Revenue growing strongly (24% annualized).

ServiceNow, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

ServiceNow, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20204,5191191,367-37
20215,8962301,799-1,636
20227,2453252,173-1,470
20238,9711,7312,704-1,897
202410,9841,4253,415-2,304
202513,2781,7484,576-2,235

Between 2020 and 2025, revenue went from $4,519M to $13,278M (+194%) and net income went from $119M to $1,748M (+1369%). Meanwhile, its margins have widened (from 3% to 13%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+23.1%
  • Net income-9.2%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • Quality score8985
  • Net margin12.6%11.3%
  • ROE15%13.3%
  • FCF margin33.2%31.1%
  • Net debt/EBITDA-0.45×1.82×

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is ServiceNow, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is ServiceNow, Inc. a good company to invest in?

In terms of business quality, ServiceNow, Inc. scores 85 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is ServiceNow, Inc. a profitable company?

Yes. ServiceNow, Inc. shows a net margin of 11.3% and an ROE of 13.3%, a sign of a profitable business.

Does ServiceNow, Inc. have a lot of debt?

A moderate level: its net debt is 1.82 times its EBITDA.

Is ServiceNow, Inc. growing?

Its revenue has grown 24% annualized in recent years and its earnings per share 61.7%, and without interruption since 2020.

Does ServiceNow, Inc. generate cash?

Yes. It converts about 31.1% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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