ServiceNow (NOW): analysis in plain words
Is ServiceNow cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
ServiceNow (NOW) is listed on the NYSE and we classify it in software and cloud. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against ServiceNow according to those figures, and the questions people ask most about the stock. No buy or sell tips.
ServiceNow (NOW) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $108.81 | Last price on November 4, 2026 |
| P/E ratio (TTM) | 78.3x | Price over earnings per share |
| Revenue growth | +20.5% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | 9.4% | Profit for every 100 of sales |
| Net debt / EBITDA | 1.2x | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $112.9 billion | What the stock market values it at |
The ServiceNow figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any NOW figure that is not available shows as N/A: we do not estimate it.
How ServiceNow makes money
ServiceNow sells subscriptions to its cloud-based Now Platform, which automates workflows for large companies and governments. IT service management is its original and largest business, now extended to customer service, HR, security operations and AI agents. North America is its main market, followed by EMEA and Asia Pacific.
Over the last 12 months, ServiceNow brought in revenue of $15.4 billion. For every 100 it sells, ServiceNow keeps 73.1 after the direct cost of what it sells (gross margin) and 17.4 after all operating costs (operating margin).
ServiceNow against its sector
To know whether a ServiceNow figure is high or low you have to put it next to similar companies. This table compares ServiceNow with the median of the 19 software and cloud companies Fintols covers, with data as of November 4, 2026.
| Figure | ServiceNow | software and cloud median |
|---|---|---|
| P/E | 78.3x | 29.0x (19) |
| Revenue growth | +20.5% | +20.5% (25) |
| Net margin | 9.4% | 16.0% (25) |
| Dividend yield | 0.00% | 0.00% (25) |
| Net debt / EBITDA | 1.2x | 0.1x (23) |
In short, against the typical software and cloud company, ServiceNow trades on a higher P/E, earns a thinner margin and carries more debt. By size, ServiceNow ranks number 9 of 22 software and cloud companies quoted in USD on Fintols.
The bull case for ServiceNow
What works in favour of ServiceNow, according to its figures as of November 4, 2026:
- Analysts expect ServiceNow earnings to rise: its P/E on the next 12 months of estimated earnings is 22.7x, below the current 78.3x.
- ServiceNow grew sales +20.5% in its latest quarter against the same quarter a year earlier, while the median software and cloud company Fintols tracks grew +20.5%.
- ServiceNow generates real cash: $5.8 billion of free cash flow over 12 months, 5.1% of its stock market value.
The main risk for ServiceNow
The price already assumes a lot: ServiceNow trades at 78.3x its last 12 months of earnings, against 29.0x for the software and cloud median. If growth disappoints, the multiple can shrink and the share price with it.
On top of that: serviceNow stock sits 39% below its 52-week high ($178.52): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of software and cloud, ServiceNow is exposed to a competitor or AI making what it sells cheaper and forcing price cuts.
Frequently asked questions about ServiceNow
Is it a good time to buy ServiceNow stock?
Fintols does not tell you whether to buy or sell ServiceNow, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, ServiceNow stock trades at $108.81, 39% below its 52-week high ($178.52) and 34% above its low ($81.24). Its P/E is 78.3x against a software and cloud median of 29.0x, and 22.7x on the earnings analysts expect over the next 12 months. With ServiceNow, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does ServiceNow pay a dividend?
No. As of November 4, 2026, ServiceNow does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying ServiceNow today is counting on the share price rising, not on income.
Is ServiceNow stock expensive?
It depends on what you compare it with. On P/E, ServiceNow trades at 78.3x its last 12 months of earnings: more expensive than the software and cloud median (29.0x). Including its debt, ServiceNow is valued at 36.2x its EBITDA (EV/EBITDA). A high P/E alone does not make ServiceNow expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are ServiceNow's competitors?
On Fintols we compare ServiceNow with Salesforce, IBM and Intuit, which are also in software and cloud. As of November 4, 2026, Salesforce is worth $186.9 billion and trades on a P/E of 20.8; IBM is worth $240.4 billion and trades on a P/E of 21.7; Intuit is worth $95.3 billion and trades on a P/E of 21.7. Each has a side-by-side comparison with ServiceNow below.
ServiceNow competitors
- Salesforce (CRM) analysis · ServiceNow vs Salesforce comparison
- IBM (IBM) analysis · ServiceNow vs IBM comparison
- Intuit (INTU) analysis · ServiceNow vs Intuit comparison
To understand ServiceNow better
- Economic Moats Explained: From Warren Buffett to AI
- P/E Ratio and EPS Explained: How to Read Them Without Traps
More companies like ServiceNow: software and cloud stocks, S&P 500 companies and S&P 100 companies. Open the full NOW analysis with its valuation and scenarios. Educational content about ServiceNow, not investment advice.