NOW ServiceNow Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Software - Application · Santa Clara, CA · 29,187 employees · servicenow.com
ServiceNow provides cloud-based digital workflow software that helps organizations automate and manage operations across information technology, human resources, and customer service. It generates revenue by delivering these platform tools, database services, and operational applications to enterprise and public sector clients worldwide through service providers and resale channels.
Bull case
The business converts revenue into positive free cash flow after accounting for stock-based compensation. It is also positioned to benefit as enterprise artificial intelligence moves from pilot testing into production, since its software sits directly where automated agents would perform work.
- Trades at the 15th percentile of its own valuation history.
- The price assumes about +22% a year cash-flow growth; it delivered +44% a year over three years, including acquisitions.
- Turns 16% of revenue into free cash after stock pay.
- The share price trend is rising.
Bear case
Gross margins have contracted relative to recent historical norms. The company could also lose ground if the emergence of artificial intelligence agents disrupts conventional per-seat software pricing models.
- Gross margin is 7.8 points below its recent norm.
Features
- V-DEEP-VALUE Deep value The price is 35% below its own-history reference value.
- V-MARGIN-COMPRESSION Margin compression Gross margin is 7.8 points below its recent norm.
- T8 Lazarus Cheap against its own history, and the price trend has turned up.
AI impact
Sells AI to its customers Tailwind
The company sells enterprise workflow software that increasingly integrates artificial intelligence to automate business tasks. Its key strength is its position embedded directly inside everyday corporate processes. However, emerging competitors offering specialized point tools and potential shifts toward consumption-based pricing models present ongoing business challenges.
Where AI helps it
- Its software sits where AI agents would do the work
- Can sell AI to a large base of existing customers (minor)
Where AI could hurt it
- Charges per user, and AI could shrink the number of paid users (minor)
- AI tools could do part of what it sells (minor)
In the company's words
Building on this foundation, our platform’s architecture, developed over years of iteration with customer feedback, allows organizations to deploy AI-enhanced workflows without replacing their existing technology infrastructure or disrupting established processes.
These changes could include, among others, bundling certain products and services, modifying service delivery methods, or altering pricing models, such as incorporating more consumption-based pricing components into our offerings.
Assessed by AI from the company's own annual report filed 29 Jan 2026 and quarterly report filed 23 Jul 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
NOW is at the 15th percentile of its own valuation history. Depending on how far back you look, it ranges from the 15th to the 24th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +22.2% annual cash-flow growth, between +14.5% and +27.9% under other reasonable assumptions. Over the last three years it delivered +43.9% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not available — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.