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 | Rank |
|---|---|---|---|---|---|
Valuation | 28 | 59.4x | 20.8x | Bottom tier | |
Growth | 80 | 22.2% | 6.1% | Top tier | |
Quality | 88 | 8.6% | 6.6% | Top tier | |
Safety | 76 | 1.0x | 0.7x | Top tier | |
Capital Return | 39 | — | 2.02% | Bottom tier | |
Momentum | 6 | -48.3% | 4.1% | Bottom tier | |
Sentiment | 68 | 30 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
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. (NOW) is a global leader in cloud computing and enterprise software, providing a unified digital platform designed to automate workflows and transform complex processes into seamless digital experiences. The company primarily generates revenue through Software-as-a-Service (SaaS) subscriptions covering information technology, human resources, customer service, and cybersecurity, targeting major corporations and government institutions worldwide through a direct sales model and an extensive network of strategic partners.
In the first quarter of 2026, ServiceNow delivered strong financial results that exceeded expectations, with total revenues reaching $3.8 billion, generating a gross profit of $2.8 billion and net income of $469.0 million, resulting in earnings per share of $0.45. First-quarter subscription revenues amounted to $3.671 billion, representing a 19% year-over-year growth in constant currency, while remaining performance obligations (RPO) reached $27.7 billion, up 23.5%, highlighting the growing demand for its AI-powered platforms.
ServiceNow stock is currently trading within a 52-week range of $81.24 to $211.478, reflecting wide volatility driven by AI opportunities. The current analyst consensus points to a 'Buy' rating with an average price target of $153.3, with the analyst target range spanning from a low of $85 to a high of $236. Based on the recent annual trading range, the stock has exceeded the average analyst target during its upward movements but remains below the highest target ceiling set by analysts.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
ServiceNow recorded total revenues of $3.8 billion in the first quarter of 2026, with a gross profit of $2.8 billion and net income of $469.0 million. The company also achieved earnings per share of $0.45, and subscription revenues reached $3.671 billion, representing a 19% year-over-year growth in constant currency, exceeding previous expectations due to strong demand for its cloud products.
The early closing of the Armis acquisition prompted management to raise its 2026 subscription revenue guidance by $205 million to a range of $15.735 billion to $15.775 billion, representing growth of 20.5% to 21%. This acquisition will add a 125 basis point contribution to annual revenue growth, although it will cause temporary pressure on operating margins and free cash flows during the current year before recovering in 2027.
The Employee Works product is a unified AI interface launched in February 2026 following the acquisition of Moveworks and the integration of its technologies with the ServiceNow platform in less than three weeks. The product aims to provide an advanced conversational and search experience for employees across platforms like Teams and Slack, serving approximately 200 million employees. The product demonstrated rapid commercial success by closing 6 deals exceeding $1 million in net-new Annual Contract Value (ACV) during its first quarter.
Automated analysis for informational purposes only — not investment advice.
ServiceNow relies on a hybrid pricing model that combines traditional, predictable seat licenses with consumption-based pricing such as tokens and other technical assets. The company revealed that 50% of its net-new business now comes from non-seat-based pricing models, allowing customers high flexibility in scaling AI adoption without administrative constraints. This strategy contributes to accelerating product upgrades and increasing the return on investment for customers adopting Now Assist solutions.
In the first quarter of 2026, ServiceNow faced delays in closing some large on-premise deals in the Middle East due to ongoing geopolitical conflicts, which negatively impacted quarterly revenue growth by approximately 75 basis points. However, management confirmed that these deals were not canceled but only delayed, and some have already closed at the beginning of the second quarter of 2026. The company incorporates these geopolitical conditions with flexibility and caution when formulating its future financial guidance to ensure accurate forecasts.