ServiceNow, Inc. (NOW) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ServiceNow, Inc. Do?
ServiceNow, Inc. provides enterprise cloud computing solutions that defines, structures, consolidates, manages, and automates services for enterprises worldwide. It operates the Now platform for workflow automation, artificial intelligence, machine learning, robotic process automation, performance analytics, electronic service catalogs and portals, configuration management systems, data benchmarking, encryption, and collaboration and development tools. The company also provides information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; IT business management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT Asset Management to automate IT asset lifecycles; and security operations that connects with internal and third party. In addition, it offers governance, risk, and compliance product to manage risk and resilience; human resources, legal, and workplace service delivery products; safe workplace applications; customer service management product; and field service management applications. Further, it provides App Engine product; IntegrationHub enables application to extend workflows; and professional, industry solutions, and customer support services. It serves government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through direct sales team and resale partners. It has a strategic partnership with Celonis to help customers identify and prioritize processes that are suitable for automation. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. The company was founded in 2004 and is headquartered in Santa Clara, California. ServiceNow, Inc. (NOW) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO William R. McDermott and employs approximately 20,400 people, headquartered in Santa Clara, California. With a market capitalization of $108.8B, NOW is one of the prominent companies in the Technology sector.
ServiceNow, Inc. (NOW) Stock Rating — Reduce (April 2026)
As of April 2026, ServiceNow, Inc. receives a Reduce rating with a composite score of 36.0/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.NOW ranks #2,862 out of 4,446 stocks in our coverage universe. Within the Technology sector, ServiceNow, Inc. ranks #320 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NOW Stock Price and 52-Week Range
ServiceNow, Inc. (NOW) currently trades at $83.19. The stock lost $6.62 (7.4%) in the most recent trading session. The 52-week high for NOW is $1057.39, which means the stock is currently trading -92.1% from its annual peak. The 52-week low is $98.00, putting the stock -15.1% above its annual trough. Recent trading volume was 58.7M shares, indicating strong institutional interest and high liquidity.
Is NOW Overvalued or Undervalued? — Valuation Analysis
ServiceNow, Inc. (NOW) carries a value factor score of 46/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 58.56x, compared to the Technology sector average of 45.27x — a premium of 29%. The price-to-book ratio stands at 8.04x, versus the sector average of 3.16x. The price-to-sales ratio is 8.33x, compared to 1.06x for the average Technology stock. On an enterprise value basis, NOW trades at 57.91x EV/EBITDA, versus 12.79x for the sector.
Overall, NOW's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ServiceNow, Inc. Profitability — ROE, Margins, and Quality Score
ServiceNow, Inc. (NOW) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 13.7%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 6.8% versus the sector average of -1.0%.
On a margin basis, ServiceNow, Inc. reports gross margins of 78.2%, compared to 50.9% for the sector. The operating margin is 14.4% (sector: -0.5%). Net profit margin stands at 14.3%, versus -1.5% for the average Technology stock. Revenue growth is running at 29.7% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
NOW Debt, Balance Sheet, and Financial Health
ServiceNow, Inc. has a debt-to-equity ratio of 101.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.00x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $2.29B. Cash and equivalents stand at $3.73B.
NOW has a beta of 0.98, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for ServiceNow, Inc. is 32/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
ServiceNow, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, ServiceNow, Inc. reported revenue of $12.51B and earnings per share (EPS) of $1.69. Net income for the quarter was $1.78B. Gross margin was 78.2%. Operating income came in at $1.80B.
In FY 2025, ServiceNow, Inc. reported revenue of $13.28B and earnings per share (EPS) of $1.69. Net income for the quarter was $1.75B. Gross margin was 77.5%. Revenue grew 20.9% year-over-year compared to FY 2024. Operating income came in at $1.82B.
In Q3 2025, ServiceNow, Inc. reported revenue of $3.41B and earnings per share (EPS) of $2.42. Net income for the quarter was $502M. Gross margin was 77.3%. Revenue grew 21.8% year-over-year compared to Q3 2024. Operating income came in at $572M.
In Q2 2025, ServiceNow, Inc. reported revenue of $3.21B and earnings per share (EPS) of $1.86. Net income for the quarter was $385M. Gross margin was 77.5%. Revenue grew 22.4% year-over-year compared to Q2 2024. Operating income came in at $358M.
Over the past 8 quarters, ServiceNow, Inc. has demonstrated a growth trajectory, with revenue expanding from $2.63B to $12.51B. Investors analyzing NOW stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NOW Dividend Yield and Income Analysis
ServiceNow, Inc. (NOW) does not currently pay a dividend. This is common among growth-oriented companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
NOW Momentum and Technical Analysis Profile
ServiceNow, Inc. (NOW) has a momentum factor score of 9/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 24/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 61/100 reflects moderate short selling activity.
NOW vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, ServiceNow, Inc. (NOW) ranks #320 out of 584 stocks based on the Blank Capital composite score. This places NOW in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing NOW against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NOW vs S&P 500 (SPY) comparison to assess how ServiceNow, Inc. stacks up against the broader market across all factor dimensions.
NOW Next Earnings Date
No upcoming earnings date has been announced for ServiceNow, Inc. (NOW) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NOW? — Investment Thesis Summary
The quantitative profile for ServiceNow, Inc. suggests caution. Momentum is weak at 9/100, a headwind for near-term performance. High volatility (stability score 32/100) increases portfolio risk.
In summary, ServiceNow, Inc. (NOW) earns a Reduce rating with a composite score of 36.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NOW stock.
Related Resources for NOW Investors
Explore more research and tools: NOW vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare NOW head-to-head with peers: NOW vs IHS, NOW vs VRSN, NOW vs ESE.