Upside case
Bull case
$237+158.0%
NOW would need investors to value it at roughly 57x earnings — about 35x more generous than today's 22x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
ServiceNow, Inc. (NOW) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
68
analysts
58 bullish · 1 bearish · 68 covering NOW
Strong Buy
0
Buy
58
Hold
9
Sell
1
Strong Sell
0
Consensus Target
$152
+64.7% vs today
Scenario Range
— – $237
Model bear to bull value window
Coverage
68
Published analyst ratings
Valuation Context
22.1x
Forward P/E · Market cap $95.3B
NOW price targets
Three scenarios for where NOW stock could go
Current
~$92
Confidence
77 / 100
Updated
May 1, 2026
Where we are now
Current · $92
Base
$216
Bull
$237
Market caseClosest to today
Base case
$216+134.2%
At 52x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
ServiceNow, Inc.
NOW · NYSETechnologySoftware - ApplicationDecember year-end
ServiceNow is a leading enterprise cloud platform that automates digital workflows across IT, customer service, HR, and security operations. It generates revenue primarily through subscription fees for its Now platform — with IT service management being its largest segment — and professional services. The company's competitive moat lies in its unified workflow automation platform that creates strong network effects and high switching costs as customers expand across departments.
Market Cap
$95.3B
Revenue TTM
$14.0B
Net Income TTM
$1.8B
Net Margin
12.6%
NOW Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
83%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+4.1%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.82/$0.71
Revenue
$3.2B/$3.1B
Q4 2025
EPS
$0.96/$0.85
Revenue
$3.4B/$3.4B
Q1 2026
EPS
$0.92/$0.89
Revenue
$3.6B/$3.5B
Q2 2026
EPS
$0.97/$0.97
Revenue
$3.8B/$3.7B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.82/$0.71 | +14.7% | $3.2B/$3.1B | +3.0% |
| Q4 2025 | $0.96/$0.85 | +13.3% | $3.4B/$3.4B | +1.5% |
| Q1 2026 | $0.92/$0.89 | +4.0% | $3.6B/$3.5B | +1.1% |
| Q2 2026 | $0.97/$0.97 | +0.0% | $3.8B/$3.7B | +0.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$16.5B
+18.0% YoY
FY2
$20.0B
+21.2% YoY
EPS Outlook
FY1
$3.46
+105.0% YoY
FY2
$3.91
+12.9% YoY
Trailing FCF (TTM)$4.6B
FCF Margin: 33.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
NOW beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
NOW Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $13.3B
Product Mix
Latest annual revenue by segment or product family
License and Service
97.0%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
62.9%
+20.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
License and Service is the largest disclosed segment at 97.0% of FY 2025 revenue, with no year-over-year comparison yet.
North America is the largest reported region at 62.9%, up 20.8% YoY.
NOW Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $568 — implies +523.2% from today's price.
Upside to Fair Value
523.2%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
NOW
55.1x
vs
S&P 500
25.1x
+119% premium
vs Technology Trailing P/E
NOW
55.1x
vs
Technology
26.7x
+106% premium
vs NOW 5Y Avg P/E
Today
55.1x
vs
5Y Average
91.7x
40% discount
Forward PE
22.1x
S&P 500
19.1x
+16%
Technology
22.1x
+0%
5Y Avg
—
—
Trailing PE
55.1x
S&P 500
25.1x
+119%
Technology
26.7x
+106%
5Y Avg
91.7x
-40%
PEG Ratio
0.79x
S&P 500
1.72x
-54%
Technology
1.52x
-48%
5Y Avg
—
—
EV/EBITDA
37.0x
S&P 500
15.2x
+143%
Technology
17.5x
+112%
5Y Avg
62.4x
-41%
Price/FCF
20.8x
S&P 500
21.1x
-1%
Technology
19.5x
+7%
5Y Avg
108.4x
-81%
Price/Sales
7.2x
S&P 500
3.1x
+130%
Technology
2.4x
+194%
5Y Avg
12.1x
-41%
Dividend Yield
—
S&P 500
1.87%
—
Technology
1.16%
—
5Y Avg
—
—
| Metric | NOW | S&P 500 | Technology | 5Y Avg NOW |
|---|---|---|---|---|
| Forward PE | 22.1x | 19.1x+16% | 22.1x | — |
| Trailing PE | 55.1x | 25.1x+119% | 26.7x+106% | 91.7x-40% |
| PEG Ratio | 0.79x | 1.72x-54% | 1.52x-48% | — |
| EV/EBITDA | 37.0x | 15.2x+143% | 17.5x+112% | 62.4x-41% |
| Price/FCF | 20.8x | 21.1x | 19.5x | 108.4x-81% |
| Price/Sales | 7.2x | 3.1x+130% | 2.4x+194% | 12.1x-41% |
| Dividend Yield | — | 1.87% | 1.16% | — |
NOW trades above S&P 500 benchmarks on 4 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolNOW Financial Health
Verdict
Strong
NOW generates $4.6B in free cash flow at a 33.2% margin — 12.4% ROIC signals a durable competitive advantage · returns 1.9% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$14.0B
Revenue Growth
TTM vs prior year
+21.7%
Gross Margin
Gross profit as a share of revenue
76.6%
Operating Margin
Operating income divided by revenue
13.4%
Net Margin
Net income divided by revenue
12.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$1.69
Free Cash Flow (TTM)
Cash generation after capex
$4.6B
FCF Margin
FCF as share of revenue — the primary cash quality signal
33.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
12.4%
ROA
Return on assets, trailing twelve months
7.5%
Cash & Equivalents
Liquid assets on the balance sheet
$3.7B
Net Cash
Cash exceeds total debt — no net leverage
$523M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
15.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.9%
Dividend
—
Buyback
1.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.8B
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
1.0B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageNOW Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Rapid Technological Change
ServiceNow must continuously innovate in AI and machine learning to stay ahead. Failure to keep pace could allow competitors to introduce superior solutions, eroding demand for its services.
High Risk
Cybersecurity Threats
The platform is exposed to sophisticated cyberattacks, including those leveraging AI, and breaches from third‑party providers. Such incidents could compromise customer data and damage trust, potentially leading to regulatory penalties.
High Risk
Competition from Major Players
Microsoft, Oracle, and Salesforce are actively developing comparable AI tools. Their market presence and resources could capture market share, reducing ServiceNow’s revenue growth.
Medium
Data Privacy & Security Regulations
Evolving laws such as the EU Data Privacy Act impose stricter compliance requirements. Non‑compliance could trigger penalties and reputational harm, increasing operating costs.
Medium
Stock Volatility
ServiceNow’s share price is prone to significant swings typical of tech firms, often disproportionate to its earnings. This volatility can affect investor sentiment and capital costs.
Lower
Valuation Concerns
Analysts argue that ServiceNow may be overvalued relative to peers, despite its projected growth. A market correction could pressure the stock price.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why NOW Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Financial Performance
ServiceNow consistently beats revenue and earnings expectations, with revenue growth projected to outpace the broader US market. Profitability is improving, as operating and free cash flow margins expand. Key metrics such as a 98% renewal rate and strong remaining performance obligations (RPO) underscore durable demand and future revenue visibility.
AI as Generational Growth Engine
The company’s agentic AI capabilities are monetized through AI Assist, which is gaining traction and driving larger deal sizes. AI is woven across its platform, enhancing workflows in IT operations, employee experience, security, and automation, positioning ServiceNow as a leader in AI‑driven workflow automation.
Platform Stickiness & Land‑and‑Expand
ServiceNow’s platform is deeply embedded in critical business functions—IT, HR, and customer service—making it mission‑critical for clients. Its land‑and‑expand strategy encourages adoption of multiple modules, boosting contract values and customer loyalty.
CRM Adoption as New Growth Vector
Expansion into new verticals, notably CRM, is proving to be a significant growth driver. The increasing adoption of ServiceNow’s CRM offerings signals strategic importance and opens additional revenue streams.
Operating Leverage & Profitability
The company is improving operating leverage, with profits rising at a faster rate than revenue growth. This trend indicates efficient scaling and the potential for higher margins as the business expands.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
NOW Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$92.01
52W Range Position
1%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$81.24
+13.3% from the low
52-Week High
$1057.39
-91.3% from the high
1 Month
-10.16%
3 Month
-10.35%
YTD
-37.6%
1 Year
-90.6%
3Y CAGR
-40.4%
5Y CAGR
-28.1%
10Y CAGR
+3.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
NOW vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
22.1x
vs 17.2x median
+29% above peer median
Revenue Growth
+18.0%
vs +9.4% median
+92% above peer median
Net Margin
12.6%
vs 18.0% median
-30% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
NOW NOW ServiceNow, Inc. | $95.3B | 22.1x | +18.0% | 12.6% | Buy | +64.7% |
CRM CRM Salesforce, Inc. | $179.9B | 15.9x | +3.7% | 18.0% | Buy | +53.5% |
WDA WDAY Workday, Inc. | $33.9B | 12.3x | +12.7% | 7.3% | Buy | +53.6% |
INT INTU Intuit Inc. | $111.2B | 17.2x | +9.4% | 21.6% | Buy | +67.4% |
ADS ADSK Autodesk, Inc. | $53.4B | 20.1x | +16.9% | 16.6% | Buy | +35.5% |
ORC ORCL Oracle Corporation | $533.2B | 24.8x | +6.4% | 25.3% | Buy | +38.7% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
NOW Dividend and Capital Return
NOW returns 1.9% annually — null% through dividends and 1.9% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
1.9%
Dividend + buyback return per year
Buyback Yield
1.9%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.8B
Estimated Shares Retired
20M
Approx. Share Reduction
1.9%
Shares Outstanding
Current diluted share count from the screening snapshot
1.0B
At 1.9%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsNOW Investor Questions
Common questions answered from live analyst data and company financials.
01Is ServiceNow, Inc. (NOW) stock a buy or sell in 2026?
ServiceNow, Inc. (NOW) is rated Buy by Wall Street analysts as of 2026. Of 68 analysts covering the stock, 58 rate it Buy or Strong Buy, 9 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $152, implying +64.7% from the current price of $92.
02What is the NOW stock price target for 2026?
The Wall Street consensus price target for NOW is $152 based on 68 analyst estimates. The high-end target is $225 (+144.5% from today), and the low-end target is $85 (-7.6%). The base case model target is $216.
03Is ServiceNow, Inc. (NOW) stock overvalued in 2026?
NOW trades at 22.1x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for ServiceNow, Inc. (NOW) stock in 2026?
The primary risks for NOW in 2026 are: (1) Rapid Technological Change — ServiceNow must continuously innovate in AI and machine learning to stay ahead. (2) Cybersecurity Threats — The platform is exposed to sophisticated cyberattacks, including those leveraging AI, and breaches from third‑party providers. (3) Competition from Major Players — Microsoft, Oracle, and Salesforce are actively developing comparable AI tools. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is ServiceNow, Inc.'s revenue and earnings forecast?
Analyst consensus estimates NOW will report consensus revenue of $16.5B (+18.0% year-over-year) and EPS of $3.46 (+105.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $20.0B in revenue.
06When does ServiceNow, Inc. (NOW) report its next earnings?
A confirmed upcoming earnings date for NOW is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does ServiceNow, Inc. generate?
ServiceNow, Inc. (NOW) generated $4.6B in free cash flow over the trailing twelve months — a free cash flow margin of 33.2%. NOW returns capital to shareholders through and share repurchases ($1.8B TTM).