# ServiceNow, Inc. (NOW)

> ServiceNow sells cloud software that helps organizations manage technology, security, employee services, and customer workflows.

- Exchange: NYSE · Sector: Technology · Industry: Software Application
- Headquarters: Santa Clara, California
- Founded: 2004
- Employees: 29,187 (December 31, 2025)
- SEC CIK: 0001373715 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001373715))
- Full page: https://inspectstocks.com/stocks/now
- Data as of: price 2026-09-28; newest filing used 2026-07-23; latest fiscal period ended 2026-06-30

## Grade

**A** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $14.7B | $8B |
| Revenue growing recently | passed | $14.7B | $13.3B |
| Free cash flow positive | passed | $4.6B |  |
| Free cash flow growing overall | passed | $4.6B | $2.3B |
| Free cash flow growing recently | passed | $4.6B | $4.6B |

Business quality (the + / − mark): 4 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 11.3% |  |
| Healthy profit margin | passed | 11.3% |  |
| Strong operating margin | failed | 11.4% |  |
| Good return on equity | failed | 12.9% |  |
| Debt under control | passed | 0.19 |  |
| Turns sales into cash | passed | 31.1% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $14.7B |
| Net income, trailing twelve months | $1.7B |
| Free cash flow, trailing twelve months | $4.6B |
| Net margin | 11.3% |
| Operating margin | 11.4% |
| Return on equity | 12.9% |
| Debt to equity | 0.19 |
| Diluted EPS, trailing twelve months | $1.33 |
| Share price | $131.45 |
| Market value | $135.9B |
| Price / earnings | 98.6x |
| Price / sales | 9.2x |

## What the business does

ServiceNow makes software that helps organizations coordinate work across departments and existing computer systems. Its products can route requests, manage approvals, track technology and security issues, and automate tasks such as employee onboarding or customer service. The company also sells artificial intelligence tools that can assist with, or carry out, some tasks under customer-set rules.

### How it makes money

- **License and Service** (97.0% (year ended December 31, 2025)) — The filing’s product revenue data places most revenue in this category. Customers generally pay subscription fees for access to ServiceNow software and related support; cloud subscription revenue is recognized over the contract term.
- **Technology Service** (3.0% (year ended December 31, 2025)) — The filing reports this as a separate product revenue category. ServiceNow also earns fees for professional services and training, generally invoicing for services as they are delivered.

### Products

- **Now Assist** — Artificial intelligence tools that can summarize requests, suggest actions, and help automate tasks in ServiceNow products.
- **IT Service Management (ITSM)** — Software for handling information technology service requests, incidents, changes, and routine tasks.
- **IT Operations Management (ITOM)** — Software that tracks and monitors a customer’s physical and cloud-based technology systems and helps identify service disruptions.
- **Security Operations and Risk Management** — Tools for managing security incidents, technology vulnerabilities, compliance work, and other organizational risks.
- **Customer Service Management and Sales and Order Management** — Software for handling customer requests, sales leads, quotes, orders, and the work needed to fulfill them.
- **EmployeeWorks** — A conversational service for employees to search for information, get help, and complete tasks across human resources, information technology, and workplace services.

### Customers

- Large private and public organizations buy subscriptions through ServiceNow’s direct sales team, managed service providers, or resale partners.
- Government agencies and other public-sector organizations buy ServiceNow software through subscription agreements; procurement rules and contract terms can apply.
- Customers use ServiceNow in sectors including financial services, healthcare, manufacturing, retail, telecommunications, technology, and government.
- The company reported a 98% renewal rate (quarter ended June 30, 2026, high); it calculates this using contract value, not simply the number of customers.
- The company reported 658 customers with annual contract value above $5 million (June 30, 2026, high).

### Competitors

- Microsoft (MSFT) — Enterprise software and services that overlap with ServiceNow’s workplace, technology, and workflow products.
- Oracle (ORCL) — Enterprise applications and cloud software that can overlap with ServiceNow’s business workflows.
- SAP (SAP) — Business applications and cloud software that can overlap with ServiceNow’s workflows for companies.
- Salesforce (CRM) — Customer relationship management software and related customer-service and sales workflows.
- Workday (WDAY) — Human resources and finance software that can overlap with ServiceNow’s employee and business workflows.

### What it depends on

- ServiceNow uses its own data centers and public cloud providers to host its software; it says costs for third-party cloud services have increased as customer use has grown.
- The company relies on implementation, sales, and technology partners to help reach customers, set up products, and provide related services.
- Most revenue comes from subscriptions, and customers generally pay for cloud access over a contract term, so renewals and new subscriptions matter to revenue.
- The software connects with customers’ other systems and data, making successful setup and integration important to customers’ use of the products.
- Government and other regulated customers can require specific security, data residency, procurement, and contracting arrangements.

### What could go wrong

- The company says rapid changes in artificial intelligence and intense competition could make it harder to adapt its products and keep them useful to customers.
- A security incident or service disruption affecting ServiceNow or its third-party providers could expose customer information, interrupt important business processes, or lead customers to leave.
- Data protection, residency, and artificial intelligence laws or customer requirements could limit how ServiceNow stores or uses data and could require changes to its services.

## More on this company

- [Overview](https://inspectstocks.com/stocks/now)
- [Financial statements](https://inspectstocks.com/stocks/now/financials)
- [Competitors](https://inspectstocks.com/stocks/now/peers)
- [Earnings](https://inspectstocks.com/stocks/now/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.