ServiceNow, Inc. (NOW) Published Snapshot
ServiceNow, Inc. is added as a high-quality large-cap coverage candidate with subscription workflow software with high retention and platform expansion economics. The initial AnalystScope view weighs workflow automation expansion across IT, employee, customer, and AI-enabled enterprise use cases against a premium software multiple leaves limited room for growth deceleration, keeping the rating restrained until the model has more live refresh history.
This page preserves a point-in-time printable snapshot at the report date shown below. It is not the live research workspace. For the current fair value, model signal, filing status, refreshed model output, and private scenario sandbox, return to the company research view.
Current research view reference
Kept here as reference beside the printable snapshot: the current research view now shows a Buy signal with medium confidence as shares are currently being evaluated against the latest daily scheduled quote of $104 versus $702 fair value, implying +574.0 upside.
Price vs fair value
+574.0%
Model-implied return
Latest daily scheduled quote
$104
Fair value
$702
Valuation method stack
Weighted fair value $702
Published method weights
DCF (Base)
$715 | 45%
NTM P/E Multiple
$695 | 35%
EV/EBITDA Cross-check
$685 | 20%
Fundamental snapshot
FY2025
Normalized annual model base
Revenue
+19.3% YoY
$13.0B
Op. margin
+2.1% pts
13.1%
FCF margin
+0.6% pts
30.0%
Published valuation range
Bear / base / bull context
Uses report scenario anchors
DCF (Base)
$715
NTM P/E Multiple
$695
EV/EBITDA Cross-check
$685
Current workspace signal
Buy
Confidence
Medium
Latest daily scheduled quote
$104
Fair value
$702
+574.0 upside
Reference freshness
Price basis
Latest daily scheduled quote
Daily scheduled refresh as of Jun 16, 2026, 6:09 AM UTC. Fresh through Jun 17, 2026, 6:09 AM UTC.
Filing reference
4 filed Jun 1, 2026 | Reporting period May 28, 2026
Filing refreshed Jun 17, 2026, 3:56 AM UTC. Fresh through Jun 17, 2026, 3:56 PM UTC.
Fundamentals reference
Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-12-31.
Fundamentals refreshed 17 Jun 2026, 03:56 UTC. Fresh through 17 Jun 2026, 15:56 UTC.
Model vs published view
Current model signal differs from the latest published analyst rating.
Live current-price moves may be widening the gap versus the latest published view.
Thesis scorecard
Growth
Moderateworkflow automation expansion across IT, employee, customer, and AI-enabled enterprise use cases
Profitability
Strongsubscription scale and high gross margins support rising cash-flow margins
Balance sheet
Moderatenet cash keeps reinvestment optionality high
Valuation
Moderatea premium software multiple leaves limited room for growth deceleration
Execution / Resilience
Moderatelarge-enterprise expansion and AI monetization need to keep supporting premium growth assumptions
Bull / Base / Bear scenarios
Bull case
$791
Normalized support: Growth, margin, and cash-flow trends are mixed versus the upside case.
Base case
$702
Normalized support: Current margin, cash-generation, and balance-sheet profile are mixed.
Bear case
$560
Downside protection: Cash generation and balance-sheet support remain supportive in the bear case.
Base-case assumptions
These are the published base-case assumptions behind the note. They are reasoned valuation inputs at the report date, not reported facts.
Revenue CAGR (5Y)
16.0%
+/- 1.5% => +/-$22/sh
Why this level: This is AnalystScope's base-case growth assumption, not a guarantee. It sits below the latest FY model-base revenue pace (2025.0%), so the model does not extend current strength too far into the outer years. Current company context: Platform consolidation can deepen wallet share in large enterprises.
Terminal Growth
3.0%
+/- 0.5% => +/-$18/sh
Why this level: This is AnalystScope's mature long-run growth assumption, not a perpetual hypergrowth claim. At 3.0%, it sits well below the 16.0% five-year revenue CAGR, so the model steps down from the explicit forecast period to a steadier long-run pace. For ServiceNow, Inc., that means a durable franchise can keep compounding after year five without assuming today's faster growth profile lasts indefinitely.
WACC
8.8%
+/- 0.5% => -$32/sh
Why this level: This is AnalystScope's base-case cost-of-capital judgment, not a precise CAPM output. It reflects the current rates backdrop, equity risk premium, and the company's balance-sheet posture. Net cash and strong billings support reinvestment capacity
Operating Margin (Year 5)
26.0%
+/- 100 bps => +/-$16/sh
Why this level: This is AnalystScope's base-case margin view, not a promise of straight-line expansion. It assumes some expansion from today's model-base operating margin (13.1%), with mix, scale, and operating leverage doing the work over time. Margin input uses a durable operating base and tempers one-off restructuring, mix, and cycle effects.
How to read the assumptions and sensitivities
These are base-case assumptions used to estimate fair value. They are reasonable model inputs, not reported facts.
Each sensitivity line shows the estimated fair-value-per-share change from a small move in that one input while the other inputs stay fixed.
bps means basis points. 100 bps equals 1.00 percentage point.
WACC sensitivity moves in the opposite direction because a higher discount rate lowers present value, while a lower discount rate raises it.
Model base vs reported fundamentals
Side-by-side view of the latest live reported fundamentals versus the current AnalystScope model base used in public valuation and thesis work.
Reported numbers show the latest company print. Model base is the comparable operating base AnalystScope uses for valuation work, which can include standardization, conservative balance-sheet treatment, working-capital cleanup, and through-cycle adjustments when current reported figures do not look durable.
Reported fundamentals source
SEC XBRL companyfacts API
Live SEC companyfacts currently cover revenue, operating margin, free cash flow, and net cash / net debt. Reporting period end 2025-12-31.
Fundamentals refreshed 17 Jun 2026, 03:56 UTC. Fresh through 17 Jun 2026, 15:56 UTC.
Model-base impact on the thesis
This initial coverage setup keeps valuation tied to durable normalized fundamentals and avoids letting a single recent print dominate the public view.
| Metric | Live reported | Status | Model base | Status |
|---|---|---|---|---|
| Revenue (TTM) | $13.3B | Live reported | $13.0B +19.3% YoY Adjustment: Model revenue smooths short-term demand, timing, and segment-mix volatility rather than treating the latest period as a straight-line run rate. | Model base |
| Operating Margin | 13.7% | Live reported | 13.1% +207 bps YoY Adjustment: Margin input uses a durable operating base and tempers one-off restructuring, mix, and cycle effects. | Model base |
| FCF (TTM) | $4.6B | Live reported | $3.9B 30.0% margin Adjustment: FCF input normalizes working-capital and capital-spending timing so cash conversion is not over-read from one period. | Model base |
| Net Cash / (Debt) | $1.2B | Live reported | $7.7B Net cash and strong billings support reinvestment capacity Adjustment: Balance-sheet input uses a conservative net cash / debt posture without assuming all cash is excess or fully distributable. | Model base |
Published investment view
The published snapshot remains anchored to a Hold rating, with the latest note event recorded as New. The current workspace now evaluates the stock against $104 versus a base-case fair value of $702, implying +574.0 upside.
Fair value $702 vs. current $104 (+574.0 upside).
Confidence framing
Method agreement / dispersion
Valuation methods are tightly grouped, with implied values ranging from $685 to $715.
Margin strength
Operating margin is 13.1%, with +207 bps vs prior FY.
Balance sheet position
Balance sheet positioning is $7.7B, with net cash and strong billings support reinvestment capacity.
Key drivers
Platform consolidation can deepen wallet share in large enterprises.
High subscription visibility supports cash-flow durability.
AI workflow features could extend expansion if adoption broadens.
Key risks
A slowdown in large-deal activity would challenge premium growth assumptions.
AI monetization may take longer than valuation expectations imply.
Competitive workflow and platform-suite pressure could affect expansion rates.
What would change our view
A clearer evidence base around workflow automation expansion across it, employee, customer, and ai-enabled enterprise use cases would improve confidence.
A deterioration in subscription scale and high gross margins support rising cash-flow margins would reduce support for the current fair value.
A wider gap between price and normalized cash-flow support would make the rating harder to defend.
Near-term catalysts
Next quarterly update and management commentary on demand quality.
Reported margin, cash-flow conversion, and balance-sheet movement versus the normalized model base.
Daily scheduled quote refreshes that tighten the current price-versus-fair-value read.
What we are watching
Current remaining performance obligation and large-deal commentary.
Free-cash-flow margin progression versus reinvestment needs.
Evidence that AI workflow adoption is monetizing beyond pilots.
Report archive context
Archive metadata below keeps the published snapshot context visible. Current research-view valuation and quote context stay secondary on this page.
How to read note event vs rating
Note event tells you what changed in the latest published note. Published rating shows the stance after that event.
Both were published Jun 13, 2026.
Report updated
Jun 13, 2026
Coverage status
Active coverage
Latest note event
New
Published Jun 13, 2026
Current published rating
Hold
Published Jun 13, 2026
Analyst note
New coverage entry focused on workflow automation expansion across it, employee, customer, and ai-enabled enterprise use cases and a premium software multiple leaves limited room for growth deceleration.
What changed in the report
Jun 13, 2026
Added to AnalystScope coverage
Impact: Started coverage with a Hold view on excellent software economics versus premium valuation sensitivity.
Jun 13, 2026
Initialized normalized annual model base
Impact: Adds a high-quality software compounder while keeping upside assumptions guarded.
Report timeline
Jun 13, 2026
Started coverage with a Hold view on excellent software economics versus premium valuation sensitivity.