Tearsheet

ServiceNow (NOW)


Market Price (10/17/2025): $891.49 | Market Cap: $184.7 Bil
Sector: Information Technology | Industry: Systems Software

ServiceNow (NOW)


Market Price (10/17/2025): $891.49
Market Cap: $184.7 Bil
Sector: Information Technology
Industry: Systems Software

Investment Highlights


0 Strong revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21%
  Expensive valuation multiples
P/EBITPrice/EBIT or Price/(Operating Income) ratio is 91x, P/EPrice/Earnings or Price/(Net Income) is 112x
1 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 32%, CFO LTM is 4.7 Bil, FCF LTM is 3.8 Bil
  Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6%
2 Low stock price volatility
Vol 12M is 39%
  
0 Strong revenue growth
Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21%
1 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 39%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 32%, CFO LTM is 4.7 Bil, FCF LTM is 3.8 Bil
2 Low stock price volatility
Vol 12M is 39%
3 Expensive valuation multiples
P/EBITPrice/EBIT or Price/(Operating Income) ratio is 91x, P/EPrice/Earnings or Price/(Net Income) is 112x
4 Yield minus risk free rate is negative
ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.6%

Market Valuation & Key Metrics

NOW Stock


Return vs. Risk


Price Returns Compared

 202020212022202320242025Total [1]
Returns
NOW Return95%18%-40%82%50%-16%215%
Peers Return132%1%-57%50%8%-16%38%
S&P 500 Return16%27%-19%24%23%13%103%

Monthly Win Rates [3]
NOW Win Rate83%50%17%75%75%44% 
Peers Win Rate67%47%23%58%43%36% 
S&P 500 Win Rate58%75%42%67%75%67% 

Max Drawdowns [4]
NOW Max Drawdown-12%-17%-47%-6%-9%-32% 
Peers Max Drawdown-25%-25%-61%-14%-32%-37% 
S&P 500 Max Drawdown-31%-1%-25%-1%-2%-15% 


[1] Cumulative total returns since the beginning of 2020
[2] Peers: TEAM, PEGA, ALRM, FSLY, VRNT. See NOW Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 10/16/2025 (YTD)

Downturns Compared

Unique KeyEventNOWS&P 500
2022 Inflation Shock2022 Inflation Shock  
2022 Inflation Shock% Loss% Loss-51.3%-25.4%
2022 Inflation Shock% Gain to Breakeven% Gain to Breakeven105.3%34.1%
2022 Inflation ShockTime to BreakevenTime to Breakeven423 days464 days
2020 Covid Pandemic2020 Covid Pandemic  
2020 Covid Pandemic% Loss% Loss-30.2%-33.9%
2020 Covid Pandemic% Gain to Breakeven% Gain to Breakeven43.3%51.3%
2020 Covid PandemicTime to BreakevenTime to Breakeven32 days148 days
2018 Correction2018 Correction  
2018 Correction% Loss% Loss-27.2%-19.8%
2018 Correction% Gain to Breakeven% Gain to Breakeven37.4%24.7%
2018 CorrectionTime to BreakevenTime to Breakeven82 days120 days


How Low Can It Go?

ServiceNow's stock fell -51.3% during the 2022 Inflation Shock from a high on 11/4/2021. A -51.3% loss requires a 105.3% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth over time.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

Better Bets than ServiceNow (NOW)

Latest Trefis Analyses

Trade Ideas

Select past ideas related to NOW. For more, see Trefis Trade Ideas.

Unique KeyDateTickerCompanyCategoryTrade Strategy6M Fwd Rtn12M Fwd Rtn12M Max DD
ADBE_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025ADBEAdobeMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
-6.7%-6.7%-6.7%
CRM_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025CRMSalesforceMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
3.8%3.8%-0.6%
MPWR_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025MPWRMonolithic Power SystemsMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
11.5%11.5%-1.8%
POWI_9262025_Dip_Buyer_High_CFO_Margins_ExInd_DE09262025POWIPower IntegrationsDip BuyDB | CFO/Rev | Low D/EDip Buy with High Cash Flow Margins
Buying dips for companies with significant cash flows from operations and reasonable debt / market cap
17.5%17.5%-13.4%
ROP_9262025_Monopoly_xInd_xCD_Getting_Cheaper09262025ROPRoper TechnologiesMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
0.3%0.3%-0.3%
NOW_10312022_Monopoly_xInd_xCD_Getting_Cheaper10312022NOWServiceNowMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
7.1%38.3%-14.1%
NOW_4302022_Monopoly_xInd_xCD_Getting_Cheaper04302022NOWServiceNowMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
-12.1%-3.9%-28.5%
Unique KeyDateTickerCompanyCategoryTrade Strategy6M Fwd Rtn12M Fwd Rtn12M Max DD
ADBE_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025ADBEAdobeMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
-6.7%-6.7%-6.7%
CRM_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025CRMSalesforceMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
3.8%3.8%-0.6%
MPWR_9302025_Monopoly_xInd_xCD_Getting_Cheaper09302025MPWRMonolithic Power SystemsMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
11.5%11.5%-1.8%
POWI_9262025_Dip_Buyer_High_CFO_Margins_ExInd_DE09262025POWIPower IntegrationsDip BuyDB | CFO/Rev | Low D/EDip Buy with High Cash Flow Margins
Buying dips for companies with significant cash flows from operations and reasonable debt / market cap
17.5%17.5%-13.4%
ROP_9262025_Monopoly_xInd_xCD_Getting_Cheaper09262025ROPRoper TechnologiesMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
0.3%0.3%-0.3%
NOW_10312022_Monopoly_xInd_xCD_Getting_Cheaper10312022NOWServiceNowMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
7.1%38.3%-14.1%
NOW_4302022_Monopoly_xInd_xCD_Getting_Cheaper04302022NOWServiceNowMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
-12.1%-3.9%-28.5%

Recent Active Movers

Recent Active Movers

More From Trefis

Peer Comparisons for ServiceNow

Financials

NOWTEAMPEGAALRMFSLYVRNTMedian
NameServiceN.AtlassianPegasyst.Alarm.comFastly Verint S. 
Mkt Price894.49150.1354.5950.597.9420.2352.59
Mkt Cap185.339.59.32.51.21.25.9
Rev LTM12,0575,2151,6769765718941,326
Op Inc LTM1,601-130279126-13977101
FCF LTM3,8051,41640616112113284
FCF 3Y Avg3,0541,224277131-35120204
CFO LTM4,6991,46041618053138298
CFO 3Y Avg3,8281,2592941457149221

Growth & Margins

NOWTEAMPEGAALRMFSLYVRNTMedian
NameServiceN.AtlassianPegasyst.Alarm.comFastly Verint S. 
Rev Chg LTM21.1%19.7%12.5%7.8%7.4%-2.3%10.1%
Rev Chg 3Y Avg22.3%23.0%11.2%6.6%13.7%-0.2%12.4%
Rev Chg Q22.4%22.3%9.5%8.8%12.3%-1.0%10.9%
QoQ Delta Rev Chg LTM5.1%5.1%2.0%2.1%2.9%-0.2%2.5%
Op Mgn LTM13.3%-2.5%16.7%12.9%-24.3%8.6%10.7%
Op Mgn 3Y Avg10.1%-5.0%7.7%9.6%-34.8%8.9%8.3%
QoQ Delta Op Mgn LTM0.3%0.9%-0.1%0.4%2.0%-1.2%0.4%
CFO/Rev LTM39.0%28.0%24.8%18.5%9.3%15.5%21.7%
CFO/Rev 3Y Avg38.1%28.6%19.2%15.7%0.8%16.6%17.9%
FCF/Rev LTM31.6%27.1%24.2%16.5%2.1%12.6%20.4%
FCF/Rev 3Y Avg30.3%27.8%17.9%14.2%-7.3%13.4%16.0%

Valuation

NOWTEAMPEGAALRMFSLYVRNTMedian
NameServiceN.AtlassianPegasyst.Alarm.comFastly Verint S. 
Mkt Cap185.339.59.32.51.21.25.9
P/S15.47.65.62.62.01.44.1
P/EBIT91.4-577.531.214.5-8.515.114.8
P/E111.6-153.842.319.5-7.819.919.7
P/CFO39.427.022.414.021.78.822.1
Total Yield0.9%-0.7%2.5%5.1%-12.8%5.0%1.7%
Dividend Yield0.0%0.0%0.1%0.0%0.0%0.0%0.0%
FCF Yield 3Y Avg1.9%2.6%4.4%4.5%-2.2%7.1%3.5%
D/E0.00.00.00.40.40.40.2
Net D/E-0.0-0.0-0.00.00.10.2-0.0

Returns

NOWTEAMPEGAALRMFSLYVRNTMedian
NameServiceN.AtlassianPegasyst.Alarm.comFastly Verint S. 
1M Rtn-4.0%-12.7%-5.9%-8.8%-5.7%-0.4%-5.8%
3M Rtn-6.7%-21.2%7.3%-8.9%15.9%-1.6%-4.2%
6M Rtn15.8%-26.0%59.9%0.4%47.3%26.5%21.2%
12M Rtn-2.7%-20.7%49.2%-6.3%10.3%-12.7%-4.5%
3Y Rtn156.6%-26.6%239.9%-19.1%-2.2%-41.6%-10.7%
1M Excs Rtn-6.3%-13.3%-7.1%-8.8%-8.4%-0.8%-7.8%
3M Excs Rtn-12.4%-28.2%-0.7%-13.8%6.2%-8.1%-10.2%
6M Excs Rtn-13.4%-52.5%35.1%-25.7%23.6%1.1%-6.1%
12M Excs Rtn-18.4%-35.7%35.8%-18.9%-3.5%-26.9%-18.7%
3Y Excs Rtn56.2%-112.4%176.6%-101.1%-82.7%-122.8%-91.9%

Financials

Segment Financials

Revenue by Segment

$ Mil20242023202220212020
Digital workflow products7,6796,0774,8823,7492,811
Information Technology Operations Management (ITOM) products1,001814691537444
Professional services and other291354323233205
Total8,9717,2455,8964,5193,460


Price Behavior

Short Interest

Short Interest: As Of Date9302025
Short Interest: Shares Quantity2,877,539
Short Interest: % Change Since 9152025-4.2%
Average Daily Volume1,458,187
Days-to-Cover Short Interest1.97
Basic Shares Quantity207,164,000
Short % of Basic Shares1.4%

Earnings Returns History

Expand for More

 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
7/23/20254.2%2.2%-8.3%
4/23/202515.5%17.5%25.0%
1/29/2025-11.4%-10.2%-18.7%
10/23/20245.4%4.7%15.4%
7/24/202413.4%11.4%12.3%
4/24/2024-4.0%-8.1%1.6%
1/24/20240.4%0.3%1.0%
10/25/20233.9%11.9%27.1%
...
SUMMARY STATS   
# Positive171817
# Negative767
Median Positive5.5%6.6%11.1%
Median Negative-3.6%-5.9%-5.2%
Max Positive15.5%20.0%27.1%
Max Negative-11.4%-13.9%-18.7%

SEC Filings

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Report DateFiling DateFiling
6302025724202510-Q 6/30/2025
3312025423202510-Q 3/31/2025
12312024130202510-K 12/31/2024
93020241024202410-Q 9/30/2024
6302024725202410-Q 6/30/2024
3312024506202410-Q 3/31/2024
12312023125202410-K 12/31/2023
93020231026202310-Q 9/30/2023
6302023727202310-Q 6/30/2023
3312023427202310-Q 3/31/2023
12312022131202310-K 12/31/2022
93020221027202210-Q 9/30/2022
6302022728202210-Q 6/30/2022
3312022428202210-Q 3/31/2022
12312021203202210-K 12/31/2021
93020211028202110-Q 9/30/2021

Insider Activity

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