ServiceNow

NOW · NYSE · Information Technology · Financials, fiscal 2016 to 2025

NOW · Last close · October 26, 2026

$158.18

ServiceNow's revenue rose 20.9% to $13.3 billion in fiscal 2025. Its operating margin was 13.7%, up from 12.4% a year earlier. Free cash flow was $4.6 billion, up 34.0%. It paid out $1.8 billion in dividends and buybacks, 40% of free cash flow. The diluted share count rose 0.4%.

ServiceNow, Inc. Latest fiscal year ended December 31, 2025 10-K filed January 29, 2026 · 0001373715-26-000007 Updated October 10, 2026

Revenue

$13.3B

20.9%

Operating margin

13.7%

1.3 pts

Net income

$1.7B

22.7%

Free cash flow

$4.6B

34.0%

Return on capital

20.9%

2.5 pts

Market cap

$163.6B

Oct 26 close

P/E

98.9x

On $1.60 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Share counts and per-share figures for earlier years are restated for a stock split (5-for-1), so every year is on today's share basis.

What ServiceNow does

ServiceNow sells cloud-based software that helps large organizations run and automate their internal work, such as IT help desks, HR requests, customer service and risk and security tasks. Its products run on one platform, the ServiceNow AI Platform. The company has added artificial intelligence (AI) features, including Now Assist and AI agents that can carry out tasks, along with tools to monitor and govern those agents.

Its products fall into four groups: Technology; Customer Relationship Management (CRM) and Industry; Core Business, which covers HR, legal, finance and supply chain; and Creator and Other, which covers low-code tools for building workflows. It releases two major platform upgrades a year. In its risk factors, ServiceNow says it recognizes revenue from subscription services over the subscription term, and that it relies on partners for a growing share of its revenue.

The company says its customers come from many industries and include public-sector and heavily regulated organizations. It bought Moveworks, whose technology adds enterprise search and a virtual agent for employee service requests. ServiceNow says its competitors are developing AI features, and that its customer deals are becoming more complex, with longer and costlier sales cycles.

Its biggest risks, as it describes them

Failing to innovate quickly enough in an intensely competitive, fast-changing technology market.
Challenges from adding AI to its products, including operational, legal, regulatory and ethical issues.
Relying on partners for a growing share of its revenue.
Customer deals that are getting more complex, with longer and costlier sales cycles and pricing pressure.
Risks of working with government and heavily regulated customers, and of security events that could shake customer trust.

From ServiceNow's annual report on Form 10-K, filed January 29, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2019 to 2025, earnings per share grew 17.3% a year and net income 18.6% a year, as new shares raised the share count by 6% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, billions

Valuation

Two ways to value ServiceNow yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from ServiceNow's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from ServiceNow's fiscal 2025 free cash flow of $4.6B, net cash of $4.8B at December 31, 2025 and 1,047 million diluted shares, from its filings. The scenarios are fitted to ServiceNow: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 22.4% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 9% for a business of moderate risk (Systems Software); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to ServiceNow's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 10% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 9% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 8% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $158.18
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from ServiceNow's earnings per share of $1.60 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 36.7×, the middle of ServiceNow's own P/E today, its peers' median and its sector's median (its peers' median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 10%, 9% and 8%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: Fortinet, Twilio, Gen Digital.

Earnings growth in the years ahead (% a year) Starts at ServiceNow's revenue growth over the last 3 years, 22.4% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $158.18
Value at this multiple, against the last close: —
ServiceNow's P/E at the last close: 98.9×

Company	Last close	Earnings per share	P/E today
ServiceNowNOW	$158.18	$1.60	98.9×
FortinetFTNT	$183.33	$2.83	64.8×
TwilioTWLO	$263.65	$7.19	36.7×
Gen DigitalGEN	$24.41	$1.71	14.3×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	3,304	4,280	4,877	5,762	6,284
Debt incl. finance leases	1,576	1,486	1,488	1,489	1,491
Net debt (negative means net cash)	−1,728	−2,794	−3,389	−4,273	−4,793
Net debt to EBITDA	−2.4x	−3.5x	−2.6x	−2.2x	−1.9x
Debt to equity	0.4x	0.3x	0.2x	0.1x	0.1x
Interest coverage	9.2x	13.2x	33.1x	59.3x	82.9x
Current ratio	1.1x	1.1x	1.1x	1.1x	1.0x
Quick ratio	1.1x	1.1x	1.1x	1.1x	1.0x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $3.0 million of ServiceNow shares on the open market, and 10 insiders sold $9.3 million, $5.7 million of it under trading plans set up in advance.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 31, 2026	Paul FippsPresident, Global Customer Ops	Sold	2,034	$147.87	$300,768	Form 4
Aug 28, 2026	Jacqueline P CanneyChief People & AI Enblmt. Off.	Sold plan	7,847	$138.00	$1.1 million	Form 4
Aug 27, 2026	Paul Edward ChamberlainDirector	Sold	2,700	$135.50	$365,850	Form 4
Aug 13, 2026	Paul Edward ChamberlainDirector	Sold plan	1,500	$125.60	$188,400	Form 4
May 28, 2026	Teresa BriggsDirector	Sold	1,595	$108.70	$173,376	Form 4
May 18, 2026	Paul FippsPresident, Global Customer Ops	Sold plan	1,048	$98.51	$103,238	Form 4
May 14, 2026	Anita M SandsDirector	Sold	16,445	$90.14	$1.5 million	Form 4
May 14, 2026	Paul Edward ChamberlainDirector	Sold plan	1,500	$87.23	$130,845	Form 4
May 8, 2026	Paul FippsPresident, Global Customer Ops	Sold plan	151	$90.47	$13,661	Form 4
Apr 24, 2026	Jacqueline P CanneyChief People & AI Enblmt. Off.	Sold	8,927	$89.60	$799,859	Form 4
Feb 27, 2026	William R McDermottChairman & CEO, Director	Bought plan	28,682	$104.60	$3.0 million	Form 4
Feb 23, 2026	Paul FippsPresident, Global Customer Ops	Sold plan	3,696	$101.77	$376,142	Form 4

The latest 12 of 30 trades. Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Pass
Current ratio rose	Fail	Pass	Fail
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Fail	Pass
F-score	7 of 9	6 of 9	6 of 9
Accruals ratio	−10.9%	−15.1%	−15.9%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put ServiceNow side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
ServiceNow	FY25	20.9%	13.7%	34.5%	20.9%	−1.9x	6
Palo Alto Networks	FY26	24.5%	6.0%	35.8%	2.6%	−0.8x	4	Compare
Fortinet	FY25	14.2%	30.7%	32.7%	—	−1.2x	5	Compare
Twilio	FY25	13.7%	3.1%	19.7%	1.5%	−4.2x	6	Compare
Gen Digital	FY26	27.1%	42.4%	30.5%	13.7%	3.0x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	1,390	1,933	2,609	3,460	4,519	5,896	7,245	8,971	10,984	13,278
Revenue growth	38.3%	39.0%	35.0%	32.6%	30.6%	30.5%	22.9%	23.8%	22.4%	20.9%
Gross profit	992	1,419	1,986	2,664	3,532	4,543	5,672	7,050	8,697	10,295
Research and development	285	378	530	749	1,024	1,397	1,768	2,124	2,543	2,960
Operating income	−382	−64	−42	42	199	257	355	762	1,364	1,824
Net income	−414	−117	−27	627	119	230	325	1,731	1,425	1,748
Diluted EPS (US$)	−0.50	−0.14	−0.03	0.64	0.12	0.23	0.32	1.68	1.37	1.67
Diluted shares (millions)	823	856	889	986	1,012	1,016	1,018	1,028	1,042	1,047
Cash flow
Cash from operations	159	643	811	1,236	1,786	2,191	2,723	3,398	4,267	5,444
Capital expenditure	106	150	224	265	419	392	550	694	852	868
Free cash flow	54	492	587	971	1,367	1,799	2,173	2,704	3,415	4,576
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	55	0	0	0	0	0	538	696	1,840
Acquisitions	34	58	37	7	107	785	91	279	113	1,084
Stock-based compensation	318	394	544	662	870	1,131	1,401	1,604	1,746	1,955
Balance sheet at fiscal year end
Cash and short-term investments	401	1,779	1,498	1,691	3,092	3,304	4,280	4,877	5,762	6,284
Debt incl. finance leases	508	630	662	695	1,640	1,576	1,486	1,488	1,489	1,491
Total assets	2,034	3,550	3,879	6,022	8,715	10,798	13,299	17,387	20,383	26,038
Total liabilities	1,647	2,772	2,768	3,894	5,881	7,103	8,267	9,759	10,774	13,074
Shareholders' equity	541	779	1,110	2,127	2,834	3,695	5,032	7,628	9,609	12,964
Margins and ratios
Gross margin	71.3%	73.4%	76.1%	77.0%	78.2%	77.0%	78.3%	78.6%	79.2%	77.5%
Operating margin	−27.5%	−3.3%	−1.6%	1.2%	4.4%	4.4%	4.9%	8.5%	12.4%	13.7%
Net margin	−29.8%	−6.0%	−1.0%	18.1%	2.6%	3.9%	4.5%	19.3%	13.0%	13.2%
Free cash flow margin	3.9%	25.5%	22.5%	28.1%	30.2%	30.5%	30.0%	30.1%	31.1%	34.5%
Return on capital	−47.3%	—	—	6.0%	12.6%	14.2%	13.8%	23.5%	23.4%	20.9%
Return on equity	−74.8%	−17.7%	−2.8%	38.7%	4.8%	7.0%	7.5%	27.4%	16.5%	15.5%
Return on assets	−21.6%	−4.2%	−0.7%	12.7%	1.6%	2.4%	2.7%	11.3%	7.5%	7.5%
Net debt to EBITDA	—	−23.2x	−7.8x	−3.4x	−2.7x	−2.4x	−3.5x	−2.6x	−2.2x	−1.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: ServiceNow's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with ServiceNow.