ServiceNow, Inc. (NOW)

Price$137.78Cached quoteAs of 2026-09-25 05:31 UTC

AI: Fair-priced

Price checkServiceNow’s rapid growth supports a premium, but today’s price still assumes years of strong artificial-intelligence adoption.

The latest clearly verifiable close before this research timestamp was $127.20 on August 19, 2026. Using roughly 1.03 billion June shares, ServiceNow's market value is about $131 billion. Latest four-quarter free cash flow—cash left after operations and capital spending—is roughly $4.6 billion, a yield near 3.5%. Second-quarter adjusted earnings were $0.90 per split-adjusted share. The valuation is demanding, but 24% revenue growth and improving cash generation make it defensible rather than clearly excessive.

Big pictureEnterprise workflow subscriptions keep compounding above twenty percent while artificial intelligence creates another major growth engine.

Revenue expanded from $4.52 billion in 2020 to $13.28 billion in 2025, while operating cash flow tripled to $5.44 billion. Second-quarter 2026 revenue rose 24% to $3.99 billion, subscription revenue increased 24.5%, and contracted revenue expected within twelve months grew 21% to $13.2 billion. ServiceNow's artificial-intelligence products surpassed $1 billion of annual contract value. Subscription contracts make revenue relatively durable, although technology budgets can slow during downturns and customers may scrutinize spending if promised automation savings fail to materialize.

Business strengthRecurring subscriptions and strong cash provide resilience, though large acquisitions have replaced net cash with meaningful debt.

ServiceNow entered 2026 with $3.73 billion of cash and no reported debt, but its $7.75 billion Armis acquisition materially changed the balance sheet. By June, debt reached about $7.52 billion while cash fell to $2.50 billion, and goodwill climbed to $9.84 billion. Stock compensation also remains substantial at $1.2 billion during the first half. Management countered dilution with more than $2.2 billion of first-quarter repurchases, helping shares outstanding fall modestly. Future buybacks now compete with debt reduction and acquisition integration.

What could change the storySuccessful artificial-intelligence monetization could extend rapid growth, while weak acquisition returns would challenge today’s premium.

The bull case is that ServiceNow becomes the central platform coordinating enterprise artificial-intelligence agents, security and workflows. AI annual contract value exceeded $1 billion, agentic deployments increased ninefold in nine months, and total remaining contracted revenue reached $29 billion. The bear case is capital allocation: Armis cost $7.75 billion and substantially increased leverage, so ServiceNow must convert that purchase into faster security growth. At roughly a 3.5% trailing cash yield, today's price requires sustained double-digit subscription growth, expanding margins and successful integration rather than merely stable software renewals.

AI: News

Second-quarter outlook raisedStrong artificial-intelligence demand beat expectations and prompted ServiceNow to raise its annual subscription revenue forecast.

On July 22, 2026, ServiceNow reported $3.88 billion of subscription revenue, up 24.5%, and $0.90 of adjusted earnings per split-adjusted share. Contracted revenue expected within twelve months rose 21% to $13.2 billion, and ServiceNow AI crossed $1 billion in annual contract value. Management raised full-year subscription revenue guidance to $15.76-$15.78 billion. Reuters reported shares gained nearly 4% after hours, a reaction consistent with stronger growth expectations.

Armis acquisition completedServiceNow spent heavily to expand cybersecurity, increasing its growth opportunity while adding substantial balance-sheet risk.

On April 20, 2026, ServiceNow completed its approximately $7.75 billion cash acquisition of Armis, a cyber-exposure management company whose products monitor connected technology assets. ServiceNow expects Armis and earlier acquisition Veza to more than triple its potential market for security and risk products. The strategic fit is strong because security data can trigger automated ServiceNow workflows, but the transaction introduced billions of dollars of debt and goodwill, raising the financial cost if integration or cross-selling disappoints.

Software fears easeServiceNow led a broad software rally as investors became less worried that new artificial-intelligence tools would replace incumbents.

On August 19, 2026, ServiceNow shares rose 6.45% to $127.20, outperforming the broader market and many technology peers. MarketWatch linked the move to renewed confidence that established software companies can benefit from artificial intelligence rather than simply be disrupted by it, alongside positive analyst commentary on ServiceNow's monetization opportunity. Because several software stocks rallied simultaneously, the move cannot be attributed solely to company-specific news, but it materially changed near-term valuation sentiment.

Loading local price history

Revenue

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010
Revenue	$13.28B	$10.98B	$8.97B	$7.25B	$5.90B	$4.52B	$3.46B	$2.61B	$1.92B	$1.39B	$1.01B	$682.6M	$424.6M	$243.7M	$92.6M	$43.3M
Gross profit	$10.29B	$8.70B	$7.05B	$5.67B	$4.54B	$3.53B	$2.66B	$1.99B	$1.42B	$992.0M	$676.1M	$433.8M	$269.4M	$139.7M	$61.1M	$27.1M
Gross margin	77.53%	79.18%	78.59%	78.29%	77.05%	78.16%	76.99%	76.13%	73.95%	71.32%	67.24%	63.55%	63.44%	57.32%	65.92%	62.63%
Research & development	$2.96B	$2.54B	$2.12B	$1.77B	$1.40B	$1.02B	$749.0M	$529.5M	$377.5M	$285.2M	$217.4M	$148.3M	$78.7M	$39.3M	$7.0M	$7.2M
Operating expenses	$8.47B	$7.33B	$6.29B	$5.32B	$4.29B	$3.33B	$2.62B	$2.03B	$1.48B	$1.37B	$842.4M	$585.6M	$335.7M	$177.3M	$50.5M	$55.3M
Operating income	$1.82B	$1.36B	$762.0M	$355.0M	$257.0M	$199.0M	$42.0M	−$42.4M	−$64.4M	−$382.2M	−$166.4M	−$151.8M	−$66.3M	−$37.6M	$10.6M	−$28.2M
Operating margin	13.74%	12.42%	8.49%	4.90%	4.36%	4.40%	1.21%	−1.63%	−3.36%	−27.47%	−16.55%	−22.24%	−15.61%	−15.42%	11.40%	−65.08%
EBITDA	$2.56B	$1.93B	$1.32B	$788.0M	$729.0M	$535.0M	$294.0M	$107.2M	$49.5M	−$299.1M	−$106.0M	−$109.8M	−$42.1M	−$24.1M	$12.0M	−$27.8M
EBITDA margin	19.30%	17.55%	14.76%	10.88%	12.36%	11.84%	8.50%	4.11%	2.58%	−21.50%	−10.54%	−16.08%	−9.92%	−9.88%	12.99%	−64.23%
Net income	$1.75B	$1.43B	$1.73B	$325.0M	$230.0M	$119.0M	$626.7M	−$26.7M	−$116.8M	−$414.2M	−$198.4M	−$179.4M	−$73.7M	−$37.3M	$9.8M	−$29.7M
Net profit margin	13.16%	12.97%	19.30%	4.49%	3.90%	2.63%	18.11%	−1.02%	−6.09%	−29.78%	−19.73%	−26.28%	−17.36%	−15.32%	10.61%	−68.56%
Basic EPSper basic share	$1.69	$1.38	$1.70	$0.32	$0.23	$0.12	$0.67	-$0.03	-$0.14	-$0.50	-$0.25	-$0.25	-$0.11	-$0.10	$0.02	-$0.26
Diluted EPSper diluted share	$1.67	$1.37	$1.68	$0.32	$0.23	$0.12	$0.64	-$0.03	-$0.14	-$0.50	-$0.25	-$0.25	-$0.11	-$0.10	$0.02	-$0.26

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

9.29%of listed shares

BlackRock, Inc.96.06M shares · Jun 30, 2026

View holders

Top 20 reported holders of NOW
Holder	% owned
BlackRock, Inc.	9.29%96.06M shares
VANGUARD CAPITAL MANAGEMENT LLC	6.51%67.35M shares
STATE STREET CORP	4.74%49.04M shares
MORGAN STANLEY	2.58%26.63M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	2.44%25.18M shares
GEODE CAPITAL MANAGEMENT, LLC	2.35%24.27M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	1.61%16.64M shares
PRICE T ROWE ASSOCIATES INC /MD/	1.55%16.07M shares
JPMORGAN CHASE & CO	1.35%13.95M shares
NORGES BANK	1.21%12.46M shares
FMR LLC	1.10%11.4M shares
NORTHERN TRUST CORP	1.06%10.99M shares
GOLDMAN SACHS GROUP INC	1.06%10.96M shares
Amundi	1.02%10.52M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.78%8.08M shares
Fisher Asset Management, LLC	0.78%8.02M shares
Pictet Asset Management Holding SA	0.69%7.18M shares
Bank of New York Mellon Corp	0.69%7.18M shares
VICTORY CAPITAL MANAGEMENT INC	0.69%7.16M shares
AMERIPRISE FINANCIAL INC	0.67%6.98M shares

Percentages use 1.03B shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$3.00M disclosed value

Sells (SEC code S)211$127.90M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 28, 2026Form 4	Briggs TeresaDirector	SellCommon Stock	1.6K	$108.70	$173.4K	11.0K
May 18, 2026Form 4 · 10b5-1	Fipps PaulPresident, Global Customer Ops	SellCommon Stock	1.0K	$98.51	$103.2K	12.1K
May 14, 2026Form 4 · 10b5-1	Chamberlain Paul EdwardDirector	SellCommon Stock	1.5K	$87.23	$130.8K	44.9K
May 14, 2026Form 4	Sands Anita MDirector	SellCommon Stock	16.4K	$90.14	$1.48M	30.1K
May 8, 2026Form 4 · 10b5-1	Fipps PaulPresident, Global Customer Ops	SellCommon Stock	151	$90.47	$13.7K	8.1K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about NOW yet. Start the conversation.

Write the first post

ServiceNow, Inc. (NOW)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.