ServiceNow, Inc. (NOW)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at sensible prices. ServiceNow has real scale in cloud-based digital workflows. Its filed revenue rose from $9.0B in fiscal year 2023 to $11.0B in fiscal year 2024 and $13.3B in fiscal year 2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.0B, up from $3.2B in fiscal Q2 2025, the quarter ended 2025-06-30, but net income fell to $298.0M from $385.0M and diluted EPS fell to $0.29 from $0.37. The latest quarter's net margin was 7.47%. That gap is the key issue: growth is not yet converting into rising profit. The balance sheet looks sound, with D/E 0.68 and an Altman Z-Score of 5.42, and trailing free cash flow is $4.6B, a FairStock-calculated FCF yield of 2.8%. But ROCE is only 4.25% and the Piotroski F-Score is 3/9, so the quality evidence is mixed. At the 2026-10-26 close of $158.18, FairStock calculates P/E 98.86, P/B 13.06 and EV/EBITDA 48.66. Its Graham Number is $20.88, leaving a -661.30% margin of safety. FairStock labels it a FAST GROWER because it computed 71.2% annual profit growth over five years and 24.1% revenue growth, but today's price already assumes a lot. I would call this a fine business but not a bargain.

In plain English: ServiceNow sells cloud software that helps companies manage digital workflows. Revenue is growing quickly, but profit fell in the latest reported quarter, and the share price looks very high compared with the company's reported profits and net worth. At the 2026-10-26 close, the price looks expensive rather than cheap.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer