Does ServiceNow Stock Lead the Pack?
ServiceNow (NOW) stock has lagged some high-growth peers over the past year, but how does it truly measure up against competitors scaling in cloud software? A closer look reveals robust operating margins and strong free cash flow generation. While its revenue growth remains solid, a premium valuation compared to more mature software names and rapidly expanding data innovators suggests limited upside without accelerated growth.
- NOW’s 13.7% operating margin is strong, reflecting workflow automation efficiency, though CRM’s 21.5% indicates superior operational efficiency.
- NOW’s 20.9% revenue growth is solid for enterprise workflows, but lags DDOG and SNOW’s faster expansion in cloud data and observability.
- NOW’s stock is down 28.3%, underperforming DDOG/SNOW; its 72.5 PE reflects investor concerns about future growth outlook and overvaluation.
Here’s how ServiceNow stacks up across size, valuation, and profitability versus key peers.
| NOW | CRM | TEAM | WDAY | DDOG | SNOW | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 126.7 | 185.9 | 21.6 | 39.4 | 45.2 | 62.1 |
| Revenue ($ Bil) | 13.3 | 41.5 | 5.8 | 9.2 | 3.4 | 4.4 |
| PE Ratio | 72.5 | 24.9 | -114.4 | 61.3 | 419.1 | -46.0 |
| LTM Revenue Growth | 20.9% | 9.6% | 20.1% | 13.2% | 27.7% | 28.5% |
| LTM Operating Margin | 13.7% | 21.5% | -3.2% | 9.4% | -1.3% | -34.3% |
| LTM FCF Margin | 34.1% | 34.7% | 22.3% | 28.0% | 26.7% | 17.5% |
| 12M Market Return | -28.3% | -29.3% | -65.7% | -41.3% | 17.3% | 15.1% |
For more details on ServiceNow, read Buy or Sell NOW Stock. Below we compare NOW’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| NOW | 20.9% | – | 20.9% | 22.4% | 23.8% |
| CRM | 9.6% | 9.6% | 8.7% | 11.2% | |
| TEAM | 20.1% | – | 19.7% | 23.3% | 26.1% |
| WDAY | 13.2% | – | 16.4% | 16.8% | 21.0% |
| DDOG | 27.7% | – | 27.7% | 26.1% | 27.1% |
| SNOW | 28.5% | – | 29.2% | 35.9% | 69.4% |
Operating Margin Comparison
| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| NOW | 13.7% | – | 13.7% | 12.4% | 8.5% |
| CRM | 21.5% | 21.5% | 20.2% | 17.2% | |
| TEAM | -3.2% | – | -2.5% | -2.7% | -9.8% |
| WDAY | 9.4% | – | 5.9% | 2.5% | -2.9% |
| DDOG | -1.3% | – | -1.3% | 2.0% | -1.6% |
| SNOW | -34.3% | – | -40.2% | -39.0% | -40.8% |
PE Ratio Comparison
| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| NOW | 72.5 | – | 90.9 | 153.1 | 83.3 |
| CRM | 24.9 | 33.7 | 51.9 | 62.0 | |
| TEAM | -114.4 | – | -165.4 | -209.9 | -125.2 |
| WDAY | 61.3 | – | 108.3 | 48.8 | -191.7 |
| DDOG | 419.1 | – | 438.4 | 261.4 | 809.8 |
| SNOW | -46.0 | – | -56.8 | -60.6 | -79.6 |
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