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ServiceNow Inc

ServiceNow Inc

NOW
$103.24USD↓-0.74%-0.77 today

MARKET CAP

106.5B

P/E (TTM)

28.1x

FWD P/E

22.1x

DAY RANGE

$103 – $106

52W RANGE

$81
$210

AI Summary

Stalk
StalkMedium

ServiceNow remains in a Stage 2 advancing corrective reset within an ongoing uptrend, with price repairing above the 9/20 EMAs and the 50-day SMA. However, recent sideways action around the EMAs and neutral OB/OS signals indicate no clear immediate entry. With mean-reversion eligibility affirming a bullish medium-term bias, execution will be stalked, targeting a pullback and acceptance into the rising EMA zone or near 50-day support. Key risks include a breakdown below the 9/20 EMA zone, failure to hold the 50-day SMA, and increasing Stage 2→3 transition risk if momentum stalls.

  • ↑Q1 subscription revenue grew 19% YoY to $3.671 B, outperforming guidance
  • ↑Raises full-year revenue outlook to $15.735–15.775 B (20.5–21% growth)
  • ↓Negative earnings yield and weak quality score signal valuation risk
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

ServiceNow, Inc. (NYSE: NOW) is a leading cloud computing platform specializing in enterprise workflow automation for IT service management (ITSM), employee productivity, security operations, and customer service across various sectors. Positioned as a critical player in the AI and digital transformation landscape, ServiceNow integrates advanced AI capabilities to enhance operational efficiency and streamline complex business processes for its clients, establishing itself firmly in a growing market driven by increasing demand for automation and innovation.

Bull says

  • ↑Q1 subscription revenue grew 19% YoY to $3.671 B, outperforming guidance
  • ↑Raises full-year revenue outlook to $15.735–15.775 B (20.5–21% growth)
  • ↑AI offerings exceeded $500 M ACV, indicating strong enterprise adoption
  • ↑Free cash flow margin at 44% with $2 B accelerated share repurchase
  • ↑Acquisitions of Armis and Moveworks expand security and AI capabilities
  • ↑High profitability, favorable analyst revisions, manageable leverage

Bear says

  • ↓Negative earnings yield and weak quality score signal valuation risk
  • ↓Anticipated margin pressure from Armis and Moveworks integrations
  • ↓Intense AI competition may cap ServiceNow’s market share gains
  • ↓Customer budget shifts toward AI could weaken traditional subscriptions
  • ↓Downward momentum and adverse sentiment pressure stock performance
  • ↓Geopolitical and economic uncertainty pose spending headwinds

Investment themes with NOW

Software↓ -1.57%

Cloud-based digital tools powering business productivity and innovation

MSFT · ORCL · PLTR
Robotics↑ +0.45%

Robotics and automation technology companies

IPGP · ZBRA · 6954.T
High Beta↓ -0.12%

Stocks with high volatility relative to market

AMD · DELL · MPWR

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-23-2026bullish

Transcript signals

Bull points

  • Q1 subscription revenues are $3.671 billion, growing 19% year-over-year in constant currency and above the high end of our guidance.
  • RPO ended the quarter at approximately $27.7 billion, representing 23.5% year-over-year constant currency growth.
  • New logo ACV growth accelerated to over 50% year over year in Q1, which included our largest net new logo deal ever at over 15 million.

Bear points

  • strong AI efficiencies internally from now on now and our underlying platform leverage will normalize our operating and free cash flow margin expansion trajectory in 2027 and beyond.
Read full transcript analysis ›