ServiceNow Inc

ServiceNow Inc

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Market Cap$115B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
ServiceNow IncServiceNow Inc69.1-13%7.91.3

Earnings Call Q2 2026

July 22, 2026 - AI Summary

Q2 outperformance vs guidance (good/surprising): - Subscription revenue: $3.877B, +23% YoY constant currency, 150 bps above high end of guidance. - CRPO growth: +21.5% YoY constant currency, 200 bps above guidance. - Operating margin (non-GAAP): 29.5%, 300 bps above guidance. - AI momentum beat: AI net new ACV grew >40% QoQ; AI ACV >$1B and company says it remains on track to $1.5B ACV by end of 2026.
Strong demand breadth + deal quality (good): - $1M+ net new ACV deals: 123, +40% YoY. - AI Control Tower demand: AI is described as “supercharging” security/risk and supporting ITOM/CMDB governance/data foundation. - Renewal health: 98% renewal rate (Q2); 658 customers at >$5M ACV, plus 32 more crossed >$20M since last year. - Widespread top-deal penetration: e.g., ITSM in 15/20 top deals, ICON in 18/20, security/risk in 16/20, CRM/workflows in 16/20.
Customer shift to agentic AI + measurable ROI narrative (good/opportunity): - Company highlights that renewal customers buying GenAI for the first time doubled QoQ and YoY, suggesting expansion beyond existing AI adopters. - Agentic AI in production: +9x in 9 months (leading indicator of future consumption). - Level 1 ITSM (“AI specialists”): 40+ customers already using; company claims closing ~80–85% of service requests without human interaction, citing dramatic cycle-time reduction (humans taking days vs AI in ~20 minutes). - Monetization: AI ACV “crossed $1B” this quarter; management emphasizes pricing uplift aligned with 20–30% framework and consumption-driven expansion (also tying to labor arbitration + higher usage from request “burn down”).

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$139.60

Target Price by Analysts

25.5% upsideServiceNow Target Price DetailsTarget Price
$191.28

Current Fair Value

72% upside

Undervalued by 72% based on the discounted cash flow analysis.

Share Statistics

Market cap$115.00 Billion
Enterprise Value$129.00 Billion
Dividend Yield$- (-)
Earnings per Share$1.69
Beta0.96
Outstanding Shares1,033,000,000

Return

Return on Equity13.34%ROE
Return on Assets5.27%
Return on Invested Capital11.48%

Valuation & Multiples

P/E Ratio69.09P/E Ratio
PEG-305.73PEG
Price to Sales7.95Price to Sales
Price to Book Ratio9.27Price to Book Ratio
Enterprise Value to Revenue8.76
Enterprise Value to EBIT57.54
Enterprise Value to Net Income77
Total Debt to Enterprise0.13
Debt to Equity1.32Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 22, 2026
EPS Estimate
$0.86
Average shareholder expectation
Revenue Estimate
$3.93 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 28, 2026
EPS Estimate
$1.03
Average shareholder expectation
Revenue Estimate
$4.10 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio1.0957▲ 6.67%
Total Calls325,447▼ 98.79%
Total Puts356,600▼ 98.72%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %6.80%▼ 76.65%
Total Invested$6.98B▼ 92.28%
Investors Holding984▼ 1345.00%

ESG Score

No data

About ServiceNow Inc

CEO: John Donahoe

Relevant Senate Committees

Joint Committee on Taxation

This committee's non-partisan analysis and 'revenue estimates' are crucial for all tax legislation. Its influence directly shapes corporate tax structures and credits, which are vital for ServiceNow's financial planning and profitability.

Finance

This committee controls taxation and trade policy, which directly impacts ServiceNow's corporate tax burden, global operations, and overall profitability, significantly influencing its valuation.

Appropriations

This committee directly allocates discretionary federal spending. Its subcommittees determine the precise budgets for government agencies, directly influencing the funding available for IT contracts and order books for companies like ServiceNow.

Select Committee on Intelligence

Members receive classified briefings on global cybersecurity threats and intelligence community priorities. This could provide non-public material information relevant to government cybersecurity spending and demand for security operations software, an area ServiceNow operates in.

Commerce, Science, and Transportation

This committee has broad jurisdiction over interstate commerce, data privacy, and technology regulation (FCC, FTC), directly impacting 'Big Tech' companies like ServiceNow regarding data handling, market competition, and digital services.

Homeland Security and Governmental Affairs

This committee directly influences federal IT procurement and efficiency, which are key markets for ServiceNow's government-focused enterprise workflow solutions. Potential regulation of AI, a component of ServiceNow's offerings, also falls under its purview.