ServiceNow Past Earnings Performance
Past criteria checks 3/6
ServiceNow has been growing earnings at an average annual rate of 39.7%, while the Software industry saw earnings growing at 22.4% annually. Revenues have been growing at an average rate of 20.2% per year. ServiceNow's return on equity is 15%, and it has net margins of 12.6%.
Key information
39.66%
Earnings growth rate
39.08%
EPS growth rate
| Software Industry Growth | 17.33% |
| Revenue growth rate | 20.22% |
| Return on equity | 14.98% |
| Net Margin | 12.59% |
| Last Earnings Update | 31 Mar 2026 |
Recent past performance updates
Recent updates
Narrative Update • May 14
NOW: AI And Cloud Alliances Will Drive Future Upside
Analysts have reset their fair value estimate for ServiceNow to $145.27 from $179.26 as they factor in slightly different assumptions for discount rates, revenue growth, profit margins, and future P/E expectations. What's in the News ServiceNow issued new GAAP subscription revenue guidance for the second quarter of 2026 of US$3,815 million to US$3,820 million, and full year 2026 guidance of US$15,735 million to US$15,775 million, which the company states represents 22% to 22.5% year over year growth (Corporate guidance).
Narrative Update • Apr 28
NOW: AI Platform Adoption And Expanded Buybacks Will Drive Long Term Upside
Analysts have reduced their fair value estimate for ServiceNow from about $246.83 to about $200.78, citing updated views on discount rates, revenue growth, profit margins, and a lower assumed future P/E multiple. What's in the News ServiceNow issued new 2026 guidance, with expected GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for the full year, followed by updated guidance for Q2 2026 of US$3,815 million to US$3,820 million and full year 2026 subscription revenue of US$15,735 million to US$15,775 million, corresponding to 22% to 22.5% year over year subscription revenue growth (Corporate guidance).Seeking Alpha • Apr 26
ServiceNow: Don't Throw The Baby Out With The Bathwater
Summary Despite a violent post-earnings market reaction, ServiceNow actually reported a beat-and-raise quarter, with subscription revenues once again expected to grow in excess of 20% in fiscal 2026. The deeply negative sentiment surrounding the software industry is creating the opportunity to acquire a wonderful business at the reasonable price of 18.0x consensus earnings of fiscal 2027. Using management's guidance, ServiceNow is expected to generate free cash flows of approximately $5.5 billion this year, the equivalent of a ~6.0% yield at current market prices. One element that could have prompted such a large post-earnings selloff is the narrative that ServiceNow is becoming increasingly dependent on acquisitions to maintain subscription revenue growth above 20%. Artificial intelligence is a massive opportunity for the NOW platform rather than a disruptive threat. This is exactly where my perspective diverges from what is currently implied by the market. Read the full article on Seeking AlphaNarrative Update • Apr 14
NOW: AI Platform Expansion And Buybacks Will Drive Future Upside
Analysts have reduced their ServiceNow price target by roughly $9 to reflect slightly lower fair value, modest adjustments to growth and margin assumptions, and a reduced forward P/E outlook. What's in the News ServiceNow plans to make its entire product portfolio AI enabled, with AI, data connectivity, workflow execution, security, and governance built into every product, and is introducing new offerings such as Context Engine, Build Agent skills, and an Enterprise Service Management Foundation package for midsize companies (Key Developments).
New Narrative • Apr 11
ServiceNow Inc. (NOW): The "AI Control Tower" and the 2026 Agentic Transformation
ServiceNow Inc. (NOW) closed the April 10, 2026, session at $82.91 USD on the NYSE, experiencing a period of significant technical pressure as the stock trades near its 52-week lows.Narrative Update • Mar 31
NOW: Expanded Buybacks And AI Partnerships Will Support Long Term Upside
Analysts now place ServiceNow's price target at $246.83, down from $257.47. This reflects updated assumptions for a slightly higher discount rate, modestly stronger revenue growth and profit margins, and a lower future P/E multiple.
Narrative Update • Mar 17
NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside
Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).Narrative Update • Mar 03
NOW: Future AI And Cybersecurity Expansion Will Drive Long Term Upside
Analysts have revised their ServiceNow price target from about $904 to roughly $133. This reflects updated views on fair value, discount rate, revenue growth, profit margin, and future P/E assumptions.Narrative Update • Feb 17
NOW: AI Partnerships And Share Repurchases Will Drive Future Upside
Analysts have trimmed their price target on ServiceNow to about $189 from roughly $226, citing updated assumptions that include slightly lower discount rates, a future P/E of about 62.5, and revised expectations for revenue growth and profit margins that they believe better reflect the company’s current risk and return profile. What's in the News Kearney and ServiceNow formed a partnership around the ServiceNow AI Platform to support enterprise-wide business process reengineering, targeting gains in operational efficiency, workflow speed, and AI driven process orchestration across functions such as sales, operations, and IT (Key Developments).Analysis Article • Feb 05
We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit
The market seemed underwhelmed by the solid earnings posted by ServiceNow, Inc. ( NYSE:NOW ) recently. Our analysis...Analysis Article • Feb 04
ServiceNow, Inc.'s (NYSE:NOW) Stock Retreats 26% But Earnings Haven't Escaped The Attention Of Investors
To the annoyance of some shareholders, ServiceNow, Inc. ( NYSE:NOW ) shares are down a considerable 26% in the last...Narrative Update • Feb 02
NOW: AI Partnership And Stock Split Will Support Long Term Upside
Analysts have modestly reduced their price target on ServiceNow to about US$257 from roughly US$266, citing updates to revenue growth, profit margin, discount rate, and future P/E assumptions in their models. What's in the News ServiceNow and Anthropic expanded their collaboration to make Claude the default model for ServiceNow Build Agent, with the goal of streamlining enterprise app development and internal workflows across the ServiceNow AI Platform.Narrative Update • Jan 19
NOW: AI And Security Deals Plus Stock Split Will Drive Upside
Analysts have adjusted their price target on ServiceNow from US$1,332.00 to US$266.40 as they update assumptions around revenue growth, profit margins and future P/E expectations. What's in the News Shareholders approved a 5 for 1 stock split, with the amended and restated certificate of incorporation to become effective on December 17, 2025, followed by the split or significant stock dividend on December 18, 2025 (Changes in Company Bylaws/Rules, Stock Splits).Narrative Update • Jan 05
NOW: Shares Will Benefit From Stock Split And Expanding AI Partnerships
Analysts have revised their price expectations for ServiceNow from about US$1,154.54 to roughly US$225.84, citing updated assumptions on revenue growth, profit margins, discount rate, and future P/E that they view as more closely aligned with current fundamentals. What's in the News ServiceNow shareholders approved an amended and restated charter to effect a 5 for 1 stock split of the common stock, with implementation scheduled for mid December 2025 following a special meeting on December 5, 2025.Narrative Update • Dec 13
NOW: AI Partnerships And Stock Split Will Drive Long-Term Upside
Analysts have raised their price target on ServiceNow from approximately $1,243 to $1,332, reflecting slightly stronger long term margin expectations that more than offset a modestly lower revenue growth outlook and a small contraction in anticipated future valuation multiples. What's in the News Shareholders approved a 5 for 1 stock split, with the amended and restated certificate of incorporation to take effect on December 17, 2025, increasing the number of authorized common shares (Special Meeting and charter amendment).Narrative Update • Nov 15
NOW: Shares Will Gain From Stock Split And Expanded AI Partnerships
Analysts have slightly lowered their price target for ServiceNow, reducing the estimated fair value by $2 to $1,154. This change is supported by modest adjustments in growth and margin projections.Narrative Update • Oct 31
NOW: AI Partnerships And Workflow Expansion Will Drive Upside Momentum
Analysts have raised their price target for ServiceNow, increasing the fair value estimate from $1,142.59 to $1,156.59. This change is due to adjustments in growth and profit margin expectations.Narrative Update • Sep 04
AI And CRM Integration Will Unlock Future Market Opportunities
With both ServiceNow’s Net Profit Margin and Discount Rate essentially unchanged, the consensus analyst price target remains steady at $1,143. What's in the News ServiceNow announced a landmark OneGov agreement with the U.S. General Services Administration, offering substantial discounts (up to 70%) for AI-powered IT service management solutions to federal agencies and accelerating government modernization with comprehensive AI workflow tools.Analysis Article • Aug 10
These 4 Measures Indicate That ServiceNow (NYSE:NOW) Is Using Debt Safely
NYSE:NOW 1 Year Share Price vs Fair Value Explore ServiceNow's Fair Values from the Community and select yours The...Analysis Article • Jul 21
The Return Trends At ServiceNow (NYSE:NOW) Look Promising
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...Seeking Alpha • Apr 24
ServiceNow: Great Quarter, Even Greater Guidance
Summary ServiceNow reaffirmed its 20% topline growth guidance, despite a minor shift in U.S. federal deals, maintaining investor confidence. The stock is attractively priced at 41x forward free cash flow, supported by strong financials and a $5.1 billion net cash position. ServiceNow's AI tools and new products like RaptorDB and CRM expansions are driving significant growth and high customer demand. Key risks include potential tariff impacts, rising inflation affecting growth stock multiples, and timing issues with U.S. federal deals. Read the full article on Seeking AlphaSeeking Alpha • Apr 14
ServiceNow: Very High Quality But Very High Expectations
Summary ServiceNow, with cross-functional workflows and low churn, is well-positioned to capitalize on the Gen AI opportunity, though its high valuation leaves little margin for error. ServiceNow's platform excels in process digitalization and orchestration, making it a strong candidate for large-scale Gen AI agent deployment and cross-functional automation. Financially, ServiceNow boasts higher gross margins and a lighter balance sheet than Salesforce, positioning it for faster growth and more agile R&D responses. Despite its strengths, ServiceNow's high multiples mean execution risks could lead to under-market performance if Gen AI deployments don't meet high expectations. I rate it a hold. Read the full article on Seeking AlphaRevenue & Expenses Breakdown
Revenue & Expenses Breakdown
How ServiceNow makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Mar 26 | 13,960 | 1,757 | 5,556 | 3,080 |
| 31 Dec 25 | 13,278 | 1,748 | 5,335 | 2,960 |
| 30 Sep 25 | 12,667 | 1,731 | 5,214 | 2,855 |
| 30 Jun 25 | 12,057 | 1,661 | 5,072 | 2,731 |
| 31 Mar 25 | 11,469 | 1,538 | 4,895 | 2,640 |
| 31 Dec 24 | 10,984 | 1,425 | 4,757 | 2,543 |
| 30 Sep 24 | 10,464 | 1,336 | 4,557 | 2,437 |
| 30 Jun 24 | 9,955 | 1,146 | 4,400 | 2,360 |
| 31 Mar 24 | 9,478 | 1,928 | 4,249 | 2,238 |
| 31 Dec 23 | 8,971 | 1,731 | 4,126 | 2,124 |
| 30 Sep 23 | 8,474 | 1,586 | 3,991 | 2,016 |
| 30 Jun 23 | 8,017 | 1,424 | 3,863 | 1,923 |
| 31 Mar 23 | 7,619 | 400 | 3,719 | 1,846 |
| 31 Dec 22 | 7,245 | 325 | 3,525 | 1,768 |
| 30 Sep 22 | 6,919 | 201 | 3,446 | 1,706 |
| 30 Jun 22 | 6,601 | 184 | 3,292 | 1,608 |
| 31 Mar 22 | 6,258 | 223 | 3,091 | 1,497 |
| 31 Dec 21 | 5,896 | 230 | 2,889 | 1,397 |
| 30 Sep 21 | 5,532 | 221 | 2,745 | 1,289 |
| 30 Jun 21 | 5,171 | 171 | 2,578 | 1,199 |
| 31 Mar 21 | 4,833 | 153 | 2,412 | 1,111 |
| 31 Dec 20 | 4,519 | 119 | 2,309 | 1,024 |
| 30 Sep 20 | 4,221 | 701 | 2,149 | 942 |
| 30 Jun 20 | 3,955 | 728 | 2,025 | 864 |
| 31 Mar 20 | 3,718 | 676 | 1,974 | 803 |
| 31 Dec 19 | 3,460 | 627 | 1,873 | 749 |
| 30 Sep 19 | 3,224 | 35 | 1,762 | 695 |
| 30 Jun 19 | 3,011 | 3 | 1,694 | 640 |
| 31 Mar 19 | 2,809 | -39 | 1,596 | 585 |
| 31 Dec 18 | 2,609 | -27 | 1,499 | 530 |
| 30 Sep 18 | 2,442 | -51 | 1,411 | 485 |
| 30 Jun 18 | 2,262 | -82 | 1,311 | 448 |
| 31 Mar 18 | 2,079 | -85 | 1,202 | 410 |
| 31 Dec 17 | 1,918 | -117 | 1,106 | 378 |
| 30 Sep 17 | 1,755 | -132 | 1,023 | 347 |
| 30 Jun 17 | 1,620 | -146 | 959 | 323 |
| 31 Mar 17 | 1,513 | -140 | 909 | 304 |
| 31 Dec 16 | 1,391 | -414 | 818 | 285 |
| 30 Sep 16 | 1,290 | -457 | 795 | 270 |
| 30 Jun 16 | 1,194 | -461 | 740 | 251 |
| 31 Mar 16 | 1,099 | -474 | 685 | 233 |
| 31 Dec 15 | 1,005 | -198 | 625 | 217 |
| 30 Sep 15 | 918 | -206 | 580 | 201 |
| 30 Jun 15 | 835 | -206 | 536 | 185 |
Quality Earnings: NOW has high quality earnings.
Growing Profit Margin: NOW's current net profit margins (12.6%) are lower than last year (13.4%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: NOW's earnings have grown significantly by 39.7% per year over the past 5 years.
Accelerating Growth: NOW's earnings growth over the past year (14.2%) is below its 5-year average (39.7% per year).
Earnings vs Industry: NOW earnings growth over the past year (14.2%) exceeded the Software industry 11.2%.
Return on Equity
High ROE: NOW's Return on Equity (15%) is considered low.
Return on Assets
Return on Capital Employed
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Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/18 00:29 |
| End of Day Share Price | 2026/05/18 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
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Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
ServiceNow, Inc. is covered by 66 analysts. 41 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Adam Shepherd | Arete Research Services LLP |
| Joseph Bonner | Argus Research Company |
| Robert Oliver | Baird |