# ServiceNow Inc. (NOW) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/now/thesis · /memo/now

## Financial Snapshot

---
ticker: NOW
step: 04
generated: 2026-05-12
source: quick-research
---

### ServiceNow, Inc. (NOW) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $8.97B | $10.98B | $13.30B | +21% |
| Subscription Revenue | $8.71B | $10.65B | $12.95B | +22% |
| Non-GAAP Gross Margin | 83.0% | 83.5% | 84.0% | +50bps |
| Non-GAAP Operating Margin | 29.4% | 30.7% | 31.5% | +80bps |
| Non-GAAP Net Income | $2.7B | $3.5B | $4.3B | +23% |
| Non-GAAP EPS (diluted) | $13.13 | $16.62 | $20.50 | +23% |
| Free Cash Flow | $2.7B | $3.5B | $4.4B | +25% |

#### Q1 2026 Highlights

| Metric | Q1 2026 |
|--------|---------|
| Subscription Revenue | $3.50B (+19% YoY constant currency) |
| Operating Margin | 32%+ |
| cRPO | ~$11.5-12B (+23% YoY) |

#### cRPO Growth Trajectory

| Quarter | cRPO | YoY Growth |
|---------|------|-----------|
| Q4 2024 | $10.27B | +19% (cc +22%) |
| Q2 2025 | $10.92B | +24.5% (cc +21.5%) |
| Q4 2025 | ~$11.5B | +21% |

#### AI ACV Trajectory

| Metric | Value |
|--------|-------|
| Now Assist ACV (FY25 exit) | >$500M |
| Now Assist FY26 target (raised) | $1.5B (from $1B) |
| $1M+ Now Assist customers | +130% YoY |

#### Customer Metrics

| Metric | FY25 Year End |
|--------|--------------|
| $1M+ ACV customers | 2,109 (+12%) |
| $5M+ ACV customers | ~500 (+21%) |
| Fortune 500 penetration | ~85% |

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$5B |
| Capital Expenditures | ~$600M |
| Free Cash Flow | $4.4B (33% margin) |
| Cash & Investments | ~$8.5B |
| Total Debt | ~$1.5B |
| Net Cash Position | ~$7B |

#### Key Ratios (approximate, May 2026)
- P/E (forward): ~38x | EV/Sales: ~13x | FCF Yield: ~2.4%
- Net Cash Position: +$7B
- Rule of 40: ~53 (21% growth + 32% non-GAAP margin)

#### Growth Profile
NOW is one of the few enterprise software companies sustaining 20%+ subscription growth at scale. FY25 revenue +21% to $13.3B; cRPO +21-24% provides strong forward visibility. Now Assist scaling rapidly: >$500M ACV (FY25 exit) → $1.5B target (FY26). Despite the strong growth, stock is -33% YTD 2026 on broader growth-deceleration concerns and concerns that AI may eventually compress base SKU prices. Q1 2026 was viewed as a potential "turning point" but market remained cautious.

#### Forward Estimates
- **FY2026E Revenue:** ~$16B (+20%)
- **FY2026E Non-GAAP EPS:** ~$24.50 (+20%)
- **FY2027E Revenue:** ~$19B (+19%)
- **FY2027E EPS:** ~$29 (+18%)
- **FY2026 cRPO target:** mid-teens to high-teens growth

#### Capital Return
- $5B additional buyback authorized FY25 (total $8.5B+ authorization)
- No dividend
- FY25 buybacks: ~$2B repurchased
- Net cash position $7B provides flexibility

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/NOW/fundamental

## Navigation

- Overview: /stocks/now
- Financials (this page): /stocks/now/financials
- Thesis: /stocks/now/thesis
- Investment Memo: /memo/now
- Coverage universe: /stocks