The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 28 | 69.2x | 20.1x | Below average | |
Growth | 50 | 21.7% | 5.6% | Near average | |
Quality | 69 | 17.5% | 7.6% | Above average | |
Safety | 62 | -1.0x | 0.4x | Near average | |
Capital Return | 49 | — | 2.19% | Near average | |
Momentum | 19 | — | — | Below average | |
Sentiment | 53 | — | — | Near average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Analyst revisions for ServiceNow stock showed relative stability in expectations over the past week, with a slight increase in the average target price by 1.17% over the last 30 days to reach 153.3 dollars. Despite one analyst recently dropping coverage, major institutions such as UBS and Oppenheimer maintained positive ratings (Outperform), reflecting continued confidence in the company's operational performance.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
ServiceNow, Inc. operates as the AI-powered control tower for business reinvention, serving as a leading cloud platform for enterprise digital workflow management across the domains of IT, HR, customer service, and security. The company generates revenue primarily through a hybrid model that combines seat-based subscription licenses with consumption-based pricing models, such as digital tokens and connectors, with non-seat contracts currently representing 50% of net new business. The company aims to reach $30 billion in annual subscription revenues by 2030, driven mainly by the adoption of generative AI technologies.
During the first quarter of fiscal year 2026, the company achieved strong financial results that exceeded expectations, with subscription revenues reaching $3.671 billion, representing a 19% year-over-year growth in constant currency, despite facing a 75 basis point headwind due to delayed closures of some major deals in the Middle East. First-quarter net income was $469.0 million, or $0.45 per share, while the company achieved a Non-GAAP operating margin of 32% and a strong free cash flow margin of 44%, driven by operational spending efficiency resulting from the internal use of AI tools.
ServiceNow stock currently trades at a price of $137.5401, which is significantly below the average price target set by analyst consensus of $153.3, with the stock enjoying a general buy consensus. The current price lies within the stock's 52-week trading range of a minimum of $81.24 and a maximum of $211.478, indicating a positive valuation gap in favor of investors compared to the highest analyst target of $236.
ServiceNow raised its subscription revenue guidance for fiscal year 2026 to range between $15.735 billion and $15.775 billion, representing a 20.5% to 21% year-over-year growth in constant currency, which includes a 1.25% contribution from the newly acquired Armis. In terms of profitability, the company expects a gross subscription revenue margin of 81.5% and an operating margin of 31.5%, impacted by Armis integration pressures of 25 and 75 basis points, respectively, while the free cash flow margin is expected to reach 35%.
ServiceNow follows a clear methodology that measures only the incremental contribution generated from advanced AI features integrated into various product suites. Driven by the significant acceleration in customer adoption, management raised the Now Assist commitment target for fiscal year 2026 from $1 billion to $1.5 billion. This jump is supported by a 70% year-over-year growth in deals that include 3 or more Now Assist products in the first quarter of 2026.
The ongoing conflict in the Middle East caused delays in closing several major on-premise deals related to sovereign cloud, which exerted a negative pressure of approximately 75 basis points on subscription revenues in the first quarter of 2026. For the second quarter of 2026, the company adopted a conservative outlook in its guidance to account for this geopolitical impact, expecting subscription revenues between $3.815 billion and $3.820 billion and current remaining performance obligations (cRPO) growth of 19.5% in constant currency.
Automated analysis for informational purposes only — not investment advice.
During the first quarter of 2026, ServiceNow executed an accelerated share repurchase program worth $2 billion, under which it repurchased approximately 20.2 million shares, equivalent to double the volume of shares repurchased throughout the entire year of 2025. By the end of the first quarter, the company announced that it still has a remaining authorization of $4.2 billion to continue buyback operations to enhance shareholder value.