ServiceNow NOW
ServiceNow is an enterprise software company offering a cloud platform to automate IT, operations, and customer service workflows, with a recurring subscription model. ServiceNow shows solid revenue growth (24%) and an exceptional gross margin (74.77%), but its valuation is very demanding (P/E 84.76) and earnings growth is negative (-21.9%), justifying a low valuation score.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
ServiceNow is an enterprise software company offering a cloud platform to automate IT, operations, and customer service workflows, with a recurring subscription model. ServiceNow shows solid revenue growth (24%) and an exceptional gross margin (74.77%), but its valuation is very demanding (P/E 84.76) and earnings growth is negative (-21.9%), justifying a low valuation score.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.7 |
| Quality / Moat | 6.1 |
| Valuation | 3.7 |
| Growth | 5.0 |
| Dividend | 1.5 |
| Momentum | 2.8 |
| Risk & Context | 6.0 |
OVERALL SCORE: 4.8/10
Context and risks
The rise in 10-year Treasury yields (5.17%) and the geopolitical risk premium affect long-duration growth valuations like ServiceNow (P/E 84.76). Concerns about AI security add pressure to the tech sector, although it is not a company-specific risk.
News considered in the analysis
- 2 Unpopular Stocks That Should Get More Attention and 1 We Avoid — Listículo sin información nueva sobre ServiceNow.
- Here’s The Actual Reason I Keep Buying Salesforce On Repeat — Opinión sobre un competidor, sin impacto directo en ServiceNow.
- 3 Software ETFs to Buy as the SaaSpocalypse Bottoms Out — Sugiere un posible punto de inflexión para el sector SaaS, lo que podría beneficiar a ServiceNow, pero es una opinión de un medio, no un hecho confirmado.
- Palantir’s Valuation Is Huge. So Is the Opportunity — Análisis de un competidor, sin impacto directo en ServiceNow.
- CrowdStrike (CRWD) Joined A Founding Alliance To Secure AI Agents — Noticia sobre un competidor en un segmento diferente, sin impacto directo en ServiceNow.
Verdict: Hold. The quality of the business is high, but the valuation and negative earnings growth limit the potential for short-term re-rating.
Main risk: The main risk is the extreme valuation (P/E 84.76) in a rising interest rate environment, which could compress the multiple if earnings growth does not recover.
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