ServiceNow, Inc. NOW
NYSEApplication softwareFinancials to Jun 30, 2026 · Updated Oct 7, 2026
Moat ranks
Balance sheet
| $B | Dec 31 | Jun 30 |
|---|---|---|
| Cash | 3.7 | 2.5 |
| Securities | 2.6 | 2.2 |
| Long-term securities | 3.8 | 2.0 |
| Debt | 1.5 | 7.5 |
| Net cash | 8.6 | -0.8 |
| Equity | 13.0 | 12.5 |
- Debt / EBITDA
- 2.73×
- Debt / equity
- 0.60×
- Leases (6/30/26)
- $936M
- Diluted shares
- 1,034M
- Book value / share
- $12.10
- Price / book
- 11.4×
- Net cash / share
- −$0.78
- Market cap
- $142.6B
- Enterprise value
- $143.5B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 24.0% | +1.6 pts | |
| Operating margin | 4.1% | -7.1 pts | |
| FCF margin | 11.9% | -4.5 pts | |
| Capex / revenue | 2.9% | -3.1 pts | |
| Quarterly renewal rate | 98.0% | 0.0 pts | |
| Remaining performance obligations | $29.0B | +21% | |
| Customers above $5 million ACV | 658 | +23% | |
| Current remaining performance obligations | $13.2B | +21% | |
| AI annual contract value | ≥$1.0B | – | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About NOW
ServiceNow sells enterprise workflow software and AI tools, with subscriptions providing 97% of FY2025 revenue. Embedded records, integrations and business processes create switching costs, reinforced by a cross-department suite and delivery partners.
- Data Workflow Lockin
Core workflow records, automations and integrations make replacement a large data and process migration project.
- Suite Bundling
One platform spans multiple workflow domains, enabling land-and-expand across Technology, Employee, Customer/Industry, and Creator workflows.
- Ecosystem Complements
A large partner ecosystem (global SIs, ISVs, cloud partners) expands implementation capacity, industry solutions, and complementary apps, reinforcing platform adoption.
- Oct 6, 2026
ServiceNow launched AI Workflow Factory globally and opened Autonomous Engineer early access, with Accenture and Infosys participating. The tools can expand partner implementation capacity, but paid demand is not yet quantified. Source: https://newsroom.servicenow.com/press-releases/details/2026/ServiceNow-launches-AI-Workflow-Factory-to-turn-workflow-improvement-into-a-continuous-agentic-AI-powered-loop/default.aspx
- Sep 28, 2026
An administrative judge granted ServiceNow an extension to answer the John Weis employment-related complaint by October 24, 2026. This procedural order does not decide liability or damages. Source: https://www.justice.gov/eoir/media/1463786/dl?inline=
- Sep 1, 2026
ServiceNow signed a collaboration agreement with Aramco Digital to standardize AI-powered workflows across affiliates in more than 50 countries; no contract revenue value was disclosed. Source: https://newsroom.servicenow.com/press-releases/details/2026/ServiceNow-and-Aramco-Digital-sign-collaboration-agreement-to-enable-AI-powered-enterprise-transformation-at-scale/default.aspx
- Jul 22, 2026
ServiceNow raised FY2026 subscription revenue guidance to $15.760-$15.780 billion, following strong net-new contract value; acquired growth and cloud costs remain important to profit conversion. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000072/erq2fy26.htm
- Jun 5, 2026
ServiceNow applied a hosted-instance security update after suspicious activity concerning unintended access, according to reporting based on its customer bulletin. The size of customer impact and financial losses remain unquantified. Source: https://www.bleepingcomputer.com/news/security/servicenow-discloses-security-incident-exposing-customer-data/amp/
Ownership
Go deeper on NOW
- Compare stock research toolsFundamentals, valuation and screening platforms for NOW.19 tools
- See NOW's price chartNo price chart here yet. See price history and indicators.17 tools
- Read NOW's earnings callsTranscripts and audio of results calls, with management's own words.15 tools
- Investing tool dealsCurrent discounts on research, charting and tracking tools.81 deals
On this page
Financial record
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | TTM | Trend | Change 2016–25 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | |||||||||||||
| Revenue | 1.69 | 2.24 | 2.93 | 3.51 | 4.46 | 5.80 | 7.12 | 8.73 | 10.54 | 12.69 | 14.24 | +25.1%/yr | |
| Cash flow | 0.19 | 0.75 | 0.91 | 1.25 | 1.76 | 2.16 | 2.68 | 3.31 | 4.09 | 5.20 | 5.13 | +44.2%/yr | |
| Earnings | -0.50 | -0.14 | -0.03 | 0.64 | 0.12 | 0.23 | 0.32 | 1.68 | 1.37 | 1.67 | 1.61 | – | |
| Free cash flow | 0.04 | 0.57 | 0.63 | 0.91 | 1.34 | 1.76 | 2.14 | 2.63 | 3.24 | 4.33 | 4.42 | +67.3%/yr | |
| Capex | 0.15 | 0.18 | 0.28 | 0.34 | 0.43 | 0.39 | 0.54 | 0.68 | 0.86 | 0.87 | 0.71 | +21.5%/yr | |
| Dividends | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | – | |
| Book value | 0.66 | 0.91 | 1.25 | 2.16 | 2.80 | 3.64 | 4.94 | 7.42 | 9.22 | 12.39 | 12.10 | +38.6%/yr | |
| Diluted shares (M) | 823 | 856 | 889 | 986 | 1,012 | 1,016 | 1,018 | 1,028 | 1,042 | 1,047 | 1,034 | +2.7%/yr | |
| Totals ($B) | |||||||||||||
| Revenue | 1.4 | 1.9 | 2.6 | 3.5 | 4.5 | 5.9 | 7.2 | 9.0 | 11.0 | 13.3 | 14.7 | +28.5%/yr | |
| Operating income | -0.4 | -0.1 | -0.0 | 0.0 | 0.2 | 0.3 | 0.4 | 0.8 | 1.4 | 1.8 | 1.7 | – | |
| Net income | -0.4 | -0.1 | -0.0 | 0.6 | 0.1 | 0.2 | 0.3 | 1.7 | 1.4 | 1.7 | 1.7 | – | |
| Free cash flow | 0.0 | 0.5 | 0.6 | 0.9 | 1.4 | 1.8 | 2.2 | 2.7 | 3.4 | 4.5 | 4.6 | +71.8%/yr | |
| Buybacks | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.5 | 0.7 | 1.8 | 3.4 | – | |
| Dividends | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | – | |
| Net cash | 0.7 | 1.0 | 1.4 | 2.0 | 2.9 | 3.4 | 4.9 | 6.6 | 8.4 | 8.6 | -0.8 | +$7.9B | |
| Margins & returns (%) | |||||||||||||
| Gross margin | 71.3 | 73.9 | 76.1 | 77.0 | 78.2 | 77.1 | 78.3 | 78.6 | 79.2 | 77.5 | 74.8 | +6.2 pts | |
| Operating margin | -27.5 | -3.4 | -1.6 | 1.2 | 4.4 | 4.4 | 4.9 | 8.5 | 12.4 | 13.7 | 11.4 | +41.2 pts | |
| Net margin | -29.8 | -6.1 | -1.0 | 18.1 | 2.6 | 3.9 | 4.5 | 19.3 | 13.0 | 13.2 | 11.3 | +42.9 pts | |
| FCF margin | 2.5 | 25.3 | 21.6 | 26.0 | 30.0 | 30.4 | 30.0 | 30.1 | 30.7 | 34.1 | 31.0 | +31.6 pts | |
| ROIC | -204.5 | – | -12.4 | 3.0 | 11.5 | 10.5 | 12.7 | 14.4 | 20.5 | 17.9 | 8.7 | +222.4 pts | |
| Return on equity | -76.6 | -15.0 | -2.4 | 29.5 | 4.2 | 6.2 | 6.5 | 22.7 | 14.8 | 13.5 | 13.3 | +90.0 pts | |
| R&D % of revenue | 20.5 | 19.7 | 20.3 | 21.6 | 22.7 | 23.7 | 24.4 | 23.7 | 23.2 | 22.3 | 22.1 | +1.8 pts | |
| Stock pay % of revenue | 22.8 | 20.5 | 20.9 | 19.1 | 19.3 | 19.2 | 19.3 | 17.9 | 15.9 | 14.7 | 14.8 | -8.1 pts | |
| Capex % of revenue | 8.9 | 8.2 | 9.5 | 9.8 | 9.6 | 6.8 | 7.6 | 7.8 | 8.1 | 6.9 | 5.0 | -2.1 pts | |
Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- strong
- Subscription products (ServiceNow AI Platform)97.0%3 claims
- Professional services and other3.0%No moat
Moat claims
- Applies to
- Subscription products (ServiceNow AI Platform)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
Core workflow records, automations and integrations make replacement a large data and process migration project. New acquisitions extend the portfolio, but Armis remains available standalone while deeper integration proceeds.
Q2 2026 ACV-based renewal returned to 98% from 97% in Q1, and cRPO reached $13.20 billion; embedded workflows remain sticky, although renewal excludes most customer downsizing.
- Annual renewal rate98.0%0.0 pts
- Quarterly renewal rate98.0%0.0 pts
- Remaining performance obligations$29.0B+21%
- Current remaining performance obligations$13.2B+21%
- Customers standardize on hyperscaler-native workflow tools
- Integration layers abstract away ServiceNow-specific data model
- AI agents reduce dependence on a single workflow UI
- FilingServiceNow Form 10-K (FY ended 2025-12-31)Jan 29, 2026
- Applies to
- Subscription products (ServiceNow AI Platform)
- Confidence
- Durability
- durable
- Trajectory
- wideningas of Oct 7, 2026
One platform spans multiple workflow domains, enabling land-and-expand across Technology, Employee, Customer/Industry, and Creator workflows.
ServiceNow AI crossed $1 billion ACV and customers above $5 million ACV reached 658, versus a recast 533 a year earlier; Armis and Veza widen the suite, but acquired growth and integration costs require separate scrutiny.
- Remaining performance obligations$29.0B+21%
- Customers above $5 million ACV658+23%
- Current remaining performance obligations$13.2B+21%
- AI annual contract value≥$1.0B
- Best-of-breed point solutions regain share in key workflow categories
- Procurement pushes unbundling to reduce vendor concentration
- FilingServiceNow Form 10-K (FY ended 2025-12-31)Jan 29, 2026
- FilingServiceNow Q1 2026 Form 10-Q - RPO and subscription demandApr 23, 2026
- Applies to
- Subscription products (ServiceNow AI Platform)
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 7, 2026
A large partner ecosystem (global SIs, ISVs, cloud partners) expands implementation capacity, industry solutions, and complementary apps, reinforcing platform adoption.
The October 6 AI Workflow Factory launch includes Accenture and Infosys, and the platform reports more than 100 billion annual workflows; established partners still support delivery, without a disclosed measure of partner-driven retention.
- Annual workflows≥100.00B
- Partners prioritize competing platforms due to incentives or strategy
- Services capacity shifts away from ServiceNow in downturns
- FilingServiceNow Form 10-K (FY ended 2025-12-31)Jan 29, 2026
Profile change log
- Oct 7, 2026 · analyst revision
The income history separates the $270 million 2016 patent settlements, $574.2 million 2019 Irish tax recognition, $910 million discrete 2023 U.S. tax recognition, $30 million Q2 2025 asset impairment and $37 million Q4 2025 contract termination. Regular stock compensation, acquisition amortization and strategic-investment revaluations remain in reported figures.
- Oct 7, 2026 · business change
ServiceNow launched AI Workflow Factory globally and opened Autonomous Engineer early access, with Accenture and Infosys participating. The tools can expand partner implementation capacity, but paid demand is not yet quantified. Source: https://newsroom.servicenow.com/press-releases/details/2026/ServiceNow-launches-AI-Workflow-Factory-to-turn-workflow-improvement-into-a-continuous-agentic-AI-powered-loop/default.aspx
- Oct 7, 2026 · business change
An administrative judge granted ServiceNow an extension to answer the John Weis employment-related complaint by October 24, 2026. This procedural order does not decide liability or damages. Source: https://www.justice.gov/eoir/media/1463786/dl?inline=
- Oct 7, 2026 · business change
ServiceNow signed a collaboration agreement with Aramco Digital to standardize AI-powered workflows across affiliates in more than 50 countries; no contract revenue value was disclosed. Source: https://newsroom.servicenow.com/press-releases/details/2026/ServiceNow-and-Aramco-Digital-sign-collaboration-agreement-to-enable-AI-powered-enterprise-transformation-at-scale/default.aspx
- Oct 7, 2026 · business change
ServiceNow raised FY2026 subscription revenue guidance to $15.760-$15.780 billion, following strong net-new contract value; acquired growth and cloud costs remain important to profit conversion. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000072/erq2fy26.htm
- Oct 7, 2026 · business change
ServiceNow applied a hosted-instance security update after suspicious activity concerning unintended access, according to reporting based on its customer bulletin. The size of customer impact and financial losses remain unquantified. Source: https://www.bleepingcomputer.com/news/security/servicenow-discloses-security-incident-exposing-customer-data/amp/
- Oct 7, 2026 · business change
ServiceNow completed the Armis acquisition, with $7.637 billion of preliminary purchase consideration in the Q2 filing, adding cyber asset visibility across IT and physical systems. Integration and debt funding increase execution risk. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/now-20260630.htm
- Oct 7, 2026 · business change
ServiceNow included AI, data connectivity, workflow execution, security and governance across its commercial tiers. Broader availability can support adoption, while separate AI upsell economics depend on usage and package choice. Source: https://newsroom.servicenow.com/press-releases/details/2026/ServiceNow-moves-beyond-the-sidecar-AI-era-giving-customers-a-complete-AI-native-experience-across-all-products-and-packages/default.aspx
- Oct 7, 2026 · business change
ServiceNow completed the Pyramid Analytics acquisition, adding business intelligence and conversational analytics to enterprise workflows; separate deal consideration is not disclosed in the reviewed release. Source: https://www.servicenow.com/in/workflow/news/pyramid-analytics-expanding-data-driven-ai.html
- Oct 7, 2026 · business change
ServiceNow acquired Veza for $1.237 billion of preliminary consideration, substantially in cash, adding identity access intelligence and security workflows. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/now-20260630.htm
- Oct 7, 2026 · business change
ServiceNow completed its five-for-one stock split, changing the share-count basis without changing each shareholder’s proportionate ownership. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000007/now-20251231.htm
- Oct 7, 2026 · business change
ServiceNow acquired Moveworks for $2.407 billion of purchase consideration, adding enterprise search and a virtual-agent interface. This expands employee and customer workflows while increasing integration and amortization costs. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/now-20260630.htm
- Oct 7, 2026 · business change
President and COO CJ Desai left ServiceNow after the board found policy violations concerning a possible conflict in a government-contract-related hiring. The DOJ investigation remained unresolved in the July 2026 filing. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000076/now-20260630.htm
- Oct 7, 2026 · business change
ServiceNow settled BMC patent litigation, removing the related dispute and financial obligations; individual settlement amounts were confidential. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371517000026/now-20161231x10k.htm
- Oct 7, 2026 · business change
ServiceNow settled HPE patent litigation, removing the related dispute and financial obligations; the HPE and BMC settlements together generated a $270 million Q1 charge. Source: https://www.sec.gov/Archives/edgar/data/1373715/000137371517000026/now-20161231x10k.htm
- Oct 7, 2026 · analyst revision
The subscription platform retains strong renewal and expands into AI and security, but lower subscription gross margin and acquisition funding weaken the profit case. The debate now distinguishes retained ACV from expansion and investment-value gains from software operating income. AI pricing notes reflect inclusion across commercial tiers.
- Oct 7, 2026 · analyst revision
FY2025 revenue shares replace the Q2 weights: subscriptions change from 97.241% to 97.025%, and services from 2.759% to 2.975%. Services are now explicitly verified without a moat: their 5% FY2025 and 26% Q2 2026 gross losses, alongside competing implementation partners, do not show a protected profit stream. Including this service revenue at zero lowers the company score from 100 to 97.03 and brings coverage to 100%. Source: FY2025 10-K and Q2 2026 10-Q.
Industry & peers
Peer map
Hover a point for its values; click a peer to compare. Dashed lines: industry medians.
Global enterprise application software
Cloud and on-premise business applications including ERP, finance, HCM, CRM, supply chain, procurement, analytics, content management and collaboration, using Apps Run The World's enterprise-applications taxonomy. Excludes implementation consulting, core cloud infrastructure and consumer software; the market is broader than SAP's ERP-centered portfolio or IDC's narrower CRM application market.
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| NOW | 97 | 74.8% | 11.4% | |
| Industry median | 31 | 78 | 75.3% | 19.9% |
| Sector median | 77 | 75 | 64.9% | 23.6% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- ERP modernization and migration of established customers create cloud demand; systems of record provide a base for adjacent applications.
- Integrated business data and workflow automation support demand for AI, but paid adoption must justify additional spend. Including AI across existing commercial tiers can broaden adoption, while extra revenue still depends on usage, editions and proven customer outcomes.
- Compliance, data residency and secure deployment requirements favor vendors with tested enterprise controls and implementation partners.
- Demand follows business investment and employment; multi-year subscriptions cushion slowdowns, while new deals and migration projects can be delayed.
- Currency changes affect international revenue translated into dollars or euros; implementation wages, cloud hosting and AI inference costs affect supplier margins. ServiceNow’s Q3 2026 cRPO outlook includes a $35 million currency headwind, while its current cost disclosures show rising cloud and infrastructure spending.
- Major migrations reopen vendor choice; Oracle, Microsoft, Workday and specialist applications can displace an incumbent.
- Interoperability, open data formats, antitrust remedies and data-access litigation reduce some forms of contractual dependence and support pricing power.
- High interest rates and weak business confidence can delay transformation budgets; debt-funded acquisitions and repurchases also increase supplier financing costs.
- AI may improve existing applications or let new entrants bypass them; product announcements do not prove adoption or pricing power.
- Cyber incidents, failed implementations and cloud outages can weaken trust in mission-critical systems. Unresolved government-contract compliance investigations, such as ServiceNow’s July 2026 disclosure, can also affect public-sector trust and procurement access. Healthcare deployments face patient-safety and government oversight requirements; expanding contract ceilings do not resolve delivery risk.
Bulls & bears
Can ServiceNow turn AI and acquired security breadth into profitable customer expansion while keeping renewal high and delivery costs under control?
Arguments
What to watch
- 1Quarterly ACV-based renewal and recast large-customer counts
- 2cRPO against acquisition contributions and contract duration
- 3Subscription gross margin, stock compensation and acquisition-related cash uses
Next check: Q3 2026 results: examine acquisition contribution, renewal, subscription gross margin and cash generation. No results date was found by October 7.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 6, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 97/100 by <a href="https://www.findmymoat.com/stocks/XNYS:NOW">Find My Moat</a> (as of September 2026)Request update
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