ServiceNow, Inc.(NOW)Stock Analysis
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Rank #115 of 2,879 stocksTOP 5%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
NOW Stock Analysis & AI Quality Score
AI stock analysis and institutional research for ServiceNow, Inc. (NOW), a Technology sector company. 13F Pro's AI-powered ranking engine scores NOW at 76.0/100 on a 32-signal composite quality model, placing it at rank #115 of 2,879 stocks — the top 5% of the AI-ranked universe. NOW scores in the top quartile across revenue scale (89.4), free cash flow (86.0), revenue growth (81.9). Shareholder dilution risk is elevated at 12.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), ServiceNow, Inc. reports quarterly revenue of $3.8B, net income of $469.0M, an operating margin of 13.3%. Top institutional holders of NOW by reported 13-F value include BlackRock,, VANGUARD CAPITAL MANAGEMENT, STATE STREET, based on the most recent SEC filings. NOW trades on the NYSE exchange and files with the SEC under CIK 1373715. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate NOW daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ServiceNow, Inc. directly from SEC EDGAR. ServiceNow, Inc.'s 13F Pro composite quality score has ranged between 8 and 85 since 2021, currently 76.0 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving NOW's Business? Latest 10-Q Breakdown
✓ 29/29 datapoints verifiedAI-extracted from ServiceNow, Inc.'s 10-Q filed 2026-04-23 — Q1 2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
ServiceNow Q1 2026 revenue grew 22% YoY to $3.77B, driven by 22% subscription revenue growth to $3.67B, with 630 customers at $5M+ ACV and RPO of $27.7B.
Biggest Revenue Drivers
Total revenue: $3,770M+22% YoY
Increased purchases by new and existing customers, cloud-based and self-hosted offerings.
Increase in services and trainings provided to new and existing customers.
Largest Expense Items
Increased headcount, data center costs, amortization of intangibles from acquisitions, cloud service costs.
Increased headcount, personnel costs, deferred commission amortization, marketing program expenses.
Increased headcount and personnel-related costs including stock-based compensation.
Increased outside services related to acquisitions and personnel-related costs.
Margins: Subscription gross profit margin declined to 78% from 81% YoY due to higher third-party cloud services usage and intangible asset amortization from acquisitions. Professional services gross loss widened to -21% from -8% as personnel and partner ecosystem costs grew faster than revenue.
Watch Items from the Filing
- One customer (U.S. federal channel partner) represents 12% of Q1 2026 revenues and 19% of accounts receivable as of March 31, 2026, up from 11% of receivables at year-end 2025.
- Renewal rate declined to 97% in Q1 2026 from 98% in Q1 2025, indicating slight uptick in customer attrition.
- Subscription gross margin expected to decline further in 2026 due to expanded third-party cloud services and incremental intangible asset amortization from acquisitions.
- Subsequent to quarter-end, company closed $7.8B acquisition of Armis Security Ltd. on April 20, 2026, funded with $4.0B term loan and other liquidity.
- RPO of $27.7B grew 25% YoY; 46% of RPO expected to convert to revenue in next 12 months; strong backlog supports revenue visibility.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$3.8B
Net Income
Q1 2026
$469.0M
Free Cash Flow
Q1 2026
$1.5B
Operating Margin
Q1 2026
13.3%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+20.9% YoYNet Income
+22.7% YoYOperating Income
+33.7% YoYEPS (Diluted)
+509.5% YoYTotal Assets
+27.7% YoYTotal Debt
Op. Cash Flow
+27.6% YoY| Metric | FY 2025 | FY 2024 | FY 2021 | FY 2020 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|
| Revenue | $13.28B +20.9% | $10.98B +86.3% | $5.90B +30.5% | $4.52B +73.2% | $2.61B +35.0% | $1.93B |
| Net Income | $1.75B +22.7% | $1.43B +519.6% | $230.0M +93.3% | $119.0M +545.6% | $-26.7M +77.1% | $-116.8M |
| Operating Income | $1.82B +33.7% | $1.36B +430.7% | $257.0M +29.1% | $199.0M +569.1% | $-42.4M +34.1% | $-64.4M |
| EPS (Diluted) | $1.67 +509.5% | $0.27 +21.2% | $0.23 +91.5% | $0.12 +493.3% | $-0.03 +77.9% | $-0.14 |
| Total Assets | $26.04B +27.7% | $20.38B +88.8% | $10.80B +23.9% | $8.71B +124.7% | $3.88B +9.3% | $3.55B |
| Total Debt | — | — | $92.0M -94.4% | $1.64B | — | — |
| Operating Cash Flow | $5.44B +27.6% | $4.27B +94.8% | $2.19B +22.7% | $1.79B +120.2% | $811.1M +26.2% | $642.9M |
AI Insight: NOW Financial Trends
ServiceNow grew revenue 43% over eight quarters to $3.77B while operating income nearly doubled, but net income volatility and seasonal cash flow patterns mask underlying profitability consistency.
• Revenue grew 43% from $2.63B (Q2 2024) to $3.77B (Q1 2026), with consistent sequential growth each quarter.
• Operating income expanded from $240M to $503M (109% growth), with operating margin improving from 9.1% to 13.4%.
• Equity increased 49% from $8.67B to $11.73B over the period, strengthening balance sheet despite no debt visibility.
⚠ Net income volatile despite rising op income: $502M (Q3 2025) fell to $401M (Q4 2025) then rebounded to $469M (Q1 2026).
⚠ Operating cash flow seasonal: peaked at $2.24B (Q4 2025), fell to $716M (Q2 2025)—track sustainability of conversion.
AI Insight: NOW Ratio Trends
ServiceNow's profitability remains volatile quarter-to-quarter, with OpMargin and ROIC swinging 4–7pp despite TTM metrics holding steady around 13–16% levels.
• Operating margin ranged 9.1% to 16.8% across nine periods; Q3 2025 peaked at 16.8%, but Q4 2025 fell to 12.4%, now recovering to 13.3% in Q1 2026.
• ROIC expanded from 11.1% (Q2 2024) to 17.2% (Q1 2026) annualized, though exhibiting similar quarterly volatility—20.2% high in Q3 2025 versus 13.1% low in Q2 2025.
• ROE and ROA follow comparable patterns: ROE ranged 12.1% to 18.6%, ROA 5.8% to 9.4%, with no sustained direction over the nine-quarter window.
⚠ Q4 2025 marked a sharp dip: OpMargin 12.4%, ROE 12.4%, ROA 6.2%—lowest ROA in dataset. Monitor if Q1 2026 recovery is durable.
⚠ Dramatic seasonal or business-cycle swings (e.g., Q3 2025 ROIC 20.2% vs. Q2 2025 13.1%) suggest lumpy earnings or margin volatility drivers.
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Top Institutional Holders of NOW
BlackRock, Inc.
$10.2B97,501,594 shVANGUARD CAPITAL MANAGEMENT LLC
$7.1B67,980,219 shSTATE STREET CORP
$5.0B48,058,492 shVANGUARD PORTFOLIO MANAGEMENT LLC
$2.6B25,172,570 shGEODE CAPITAL MANAGEMENT, LLC
$2.5B24,423,811 shMORGAN STANLEY
$2.4B23,347,995 shUBS AM, a distinct business unit of UBS ASSET MANAGEMENT AME
$1.5B14,275,465 shFMR LLC
$1.3B12,284,999 shAmundi
$1.2B11,479,098 shNORTHERN TRUST CORP
$1.1B10,837,127 sh
| Fund | Value | Shares |
|---|---|---|
| BlackRock, Inc. | $10.2B | 97,501,594 |
| VANGUARD CAPITAL MANAGEMENT LLC | $7.1B | 67,980,219 |
| STATE STREET CORP | $5.0B | 48,058,492 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $2.6B | 25,172,570 |
| GEODE CAPITAL MANAGEMENT, LLC | $2.5B | 24,423,811 |
| MORGAN STANLEY | $2.4B | 23,347,995 |
| UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AME | $1.5B | 14,275,465 |
| FMR LLC | $1.3B | 12,284,999 |
| Amundi | $1.2B | 11,479,098 |
| NORTHERN TRUST CORP | $1.1B | 10,837,127 |
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Popular Research
Is NOW a good stock to buy?
13F Pro's AI-powered analysis of ServiceNow, Inc. (NOW) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on NYSE). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for NOW are available on the NOW stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own NOW?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling NOW. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of ServiceNow, Inc.'s investment landscape.