NOW
ServiceNow · Information Technology · Systems Software
$140.32
52w 81.24 – 192.97
20y monthly, adjusted
Mkt cap
$145.1B
P/E
83.3
P/FCF
31.8
FCF yield
3.1%
ROE
13.5%
Shldr yield
1.3%
div 0.0% + bb 1.3%
What today's price assumes
At $145.1B, the market is pricing in 14.0% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 34.8% per year — expectations look undemanding relative to history.
Simple DCF per-share range: $67 · $151 · $218 (4% / base / optimistic growth). An estimate, not a target.
Historical multiple lens
At its own median P/OCF of 49.7× across 11 years, NOW would trade near $262/share (25th–75th percentile: $227–$308); it trades at 26.7× today.
Assumes the historical multiple regime persists — re-ratings can be permanent.
Growth record
Compound annual growth rates from as-filed 10-K data, split-adjusted
Rev 3y
+22.4%
Rev 5y
+24.1%
Rev 10y
+29.4%
EPS 5y
+70.2%
EPS 10y
—
FCF 5y
+27.3%
FCF 10y
+34.8%
Fundamentals
Fiscal 2010–2025, from SEC filings
Revenue
Net income
Free cash flow
Diluted shares (lower is better)
Margins
Capital returned (dividends + buybacks)
Cash vs long-term debt
Quarterly
Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.
Revenue by quarter
Net income by quarter
| Quarter | Revenue | YoY | Net income | YoY | EPS | OCF |
|---|---|---|---|---|---|---|
| Q2'26 | $4.0B | +24.0% | $298.0M | −22.6% | 0.29 | $587.0M |
| Q1'26 | $3.8B | +22.1% | $469.0M | +2.0% | 0.45 | $1.7B |
| Q4'25 * | $3.6B | +20.7% | $401.0M | +4.4% | -1.54 | $2.2B |
| Q3'25 | $3.4B | +21.8% | $502.0M | +16.2% | 2.40 | $813.0M |
| Q2'25 | $3.2B | +22.4% | $385.0M | +46.9% | 0.37 | $716.0M |
| Q1'25 | $3.1B | +18.6% | $460.0M | +32.6% | 0.44 | $1.7B |
| Q4'24 * | $3.0B | +21.3% | $384.0M | +30.2% | -3.63 | $1.6B |
| Q3'24 | $2.8B | +22.2% | $432.0M | +78.5% | 2.07 | $671.0M |
| Q2'24 | $2.6B | +22.2% | $262.0M | −74.9% | 1.26 | $620.0M |
| Q1'24 | $2.6B | +24.2% | $347.0M | +131.3% | 1.67 | $1.3B |
| Q4'23 * | $2.4B | +25.6% | $295.0M | +96.7% | -5.30 | $1.6B |
| Q3'23 | $2.3B | +25.0% | $242.0M | +202.5% | 1.17 | $311.0M |
| Q2'23 | $2.1B | +22.7% | $1.0B | +5120.0% | 5.08 | $580.0M |
Track record
Compound annual growth by period. For debt and share count, negative is the good direction.
| Series | 3y | 5y | 10y | 15y |
|---|---|---|---|---|
| Revenue | +22.4% | +24.1% | +29.4% | +46.5% |
| Operating cash flow | +26.0% | +25.0% | +32.9% | — |
| Free cash flow | +28.2% | +27.3% | +34.8% | — |
| EPS (diluted) | +74.0% | +70.2% | +56.1% | — |
| Equity | +37.1% | +35.5% | +36.8% | — |
| LT debt | — | — | — | — |
| Diluted shares | +0.6% | +0.5% | +3.6% | +4.2% |
| Stock price | +6.4% | +0.1% | +23.1% | — |
$100, 3 years ago
$121vs $192 in SPY
6.4% vs 24.4%/yr
$100, 5 years ago
$101vs $181 in SPY
0.1% vs 12.6%/yr
$100, 10 years ago
$798vs $428 in SPY
23.1% vs 15.6%/yr
The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)
Last 5 years
$2.09
$11.4B created / $5.5B retained
Quality & capital discipline
Cash-based returns and how management deploys capital
Cash ROIC
42.0%
OCF ÷ (equity + debt)
OCF / EV yield
3.8%
MC vs 10× OCF
2.68
≤1 = priced under 10× OCF
Debt / FCF
—
SBC / FCF
42.7%
Owner earnings
$2.6B
OCF − capex − SBC
OE yield
1.8%
Share count 5y
+4.2%
per year; negative = buybacks
Capital intensity
17.2%
net PP&E ÷ revenue
Sales efficiency
$0.19
new PP&E per $1 new revenue, 5y
Growth engine (5y): reinvested 44.8% of operating cash flow at an incremental return of 45.3% — an organically fundable growth rate of about 20.3% per year (growth ≈ reinvestment rate × incremental ROIC).
Checklist
20 of 26 checks pass · 77%. Checks with structurally missing inputs are excluded.
Growth & Consistency
6/7
- pass
Revenue growth
24.1% · 5y CAGR ≥ 5%
- pass
EPS growth
70.2% · 5y CAGR ≥ 5%
- pass
FCF growth
27.3% · 5y CAGR ≥ 5%
- pass
Revenue rises consistently
9 of 9 · up in ≥ 7 of last 10 years
- pass
FCF consistently positive
10 of 10 · positive in ≥ 8 of last 10 years
- fail
Profitable every year
7 of 10 · net income > 0 in ≥ 8 of last 10
- pass
Cash flow keeps up with sales
25.0% vs 24.1% · OCF CAGR ≥ 0.9× revenue CAGR
Profitability
7/7
- pass
Net margin
13.2% · ≥ 8%
- pass
Operating margin
13.7% · ≥ 10%
- pass
Gross margin stable or rising
77.5% vs 78.3% · no drop > 2 pts over 3y
- pass
Return on equity
13.5% · ≥ 12%
- pass
Cash ROIC
42.0% · ≥ 12%
- pass
FCF margin
34.5% · ≥ 5%
- pass
Earnings back their cash
OCF $5.4B vs NI $1.7B · OCF ≥ net income (latest FY)
Balance Sheet
4/4
- pass
Debt payable from cash flow
no debt · LT debt ≤ 3× FCF
- pass
Cash cushion
— · cash ≥ 50% of LT debt
- pass
Leverage
— · LT debt ≤ 1.5× equity
- pass
Equity positive and compounding
$13.0B · equity > 0 and grew over ~5y
- na
Interest burden
— · interest ≤ 15% of operating income
Capital Allocation
1/4
- fail
Share count flat or shrinking
4.2% · ≤ +0.5%/yr over ~5y
- fail
Stock comp restrained
43% · SBC ≤ 15% of FCF
- pass
Distributions funded by FCF
40% · dividends + buybacks ≤ 100% of FCF
- fail
Repurchases are a habit
4 of 10 · buybacks in ≥ 5 of last 10 years
Valuation Discipline
2/4
- pass
FCF yield
3.1% · ≥ 3%
- fail
Earnings multiple
83.3 · P/E ≤ 25
- pass
Price asks less than history delivered
14.0% vs 34.8% · implied FCF growth ≤ historical FCF CAGR
- fail
Shareholder yield
1.3% · dividends + buybacks ≥ 2% of market cap
Red flags
Mechanical checks — a flag is a question to investigate, not a verdict
Heavy stock compensation
Stock-based compensation consumes more than 30% of free cash flow.
Shareholder dilution
Diluted share count has grown by more than 2% per year over ~5 years.
Financial data
As filed in 10-Ks; per-share figures split-adjusted. $ in millions.
| FY | Revenue | Gross profit | Op income | Net income | EPS | OCF | CapEx | FCF | Dividends | Buybacks | SBC | Cash | LT debt | Equity | Shares |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 13,278 | 10,295 | 1,824 | 1,748 | 1.67 | 5,444 | 868 | 4,576 | — | 1,840 | 1,955 | 3,726 | — | 12,964 | 1,047 |
| 2024 | 10,984 | 8,697 | 1,364 | 1,425 | 1.37 | 4,267 | 852 | 3,415 | — | 696 | 1,746 | 2,304 | — | 9,609 | 1,042 |
| 2023 | 8,971 | 7,050 | 762 | 1,731 | 1.68 | 3,398 | 694 | 2,704 | — | 538 | 1,604 | 1,897 | — | 7,628 | 1,028 |
| 2022 | 7,245 | 5,672 | 355 | 325 | 0.32 | 2,723 | 550 | 2,173 | — | 0 | 1,401 | 1,470 | — | 5,032 | 1,028 |
| 2021 | 5,896 | 4,543 | 257 | 230 | 0.22 | 2,191 | 392 | 1,799 | — | 0 | 1,131 | 1,728 | — | 3,695 | 1,026 |
| 2020 | 4,519 | 3,532 | 199 | 119 | 0.12 | 1,786 | 419 | 1,367 | — | — | 870 | 1,677 | — | 2,834 | 1,023 |
| 2019 | 3,460 | 2,664 | 42 | 627 | 0.63 | 1,236 | 265 | 971 | — | 0 | 662 | 776 | — | 2,127 | 996 |
| 2018 | 2,609 | 1,986 | -42 | -27 | -0.03 | 811 | 224 | 587 | — | 0 | 544 | 566 | — | 1,110 | 898 |
| 2017 | 1,918 | 1,419 | -64 | -117 | -0.13 | 643 | 151 | 492 | — | 55 | 394 | 726 | — | 779 | 865 |
| 2016 | 1,391 | 992 | -382 | -414 | -0.50 | 159 | 106 | 54 | — | 0 | 318 | 401 | — | 541 | — |
| 2015 | 1,005 | 676 | -166 | -198 | -0.25 | 318 | 87 | 230 | — | 0 | 258 | 412 | — | 567 | — |
| 2014 | 683 | 434 | -152 | -179 | -0.24 | 141 | 54 | 87 | — | — | 154 | 252 | — | 429 | — |
| 2013 | 425 | 269 | -66 | -74 | -0.11 | 82 | 55 | 26 | — | — | 66 | 366 | — | 394 | 684 |
| 2012 | 244 | 140 | -38 | -37 | -0.06 | 49 | 42 | 7 | — | — | 28 | 119 | — | 243 | 684 |
| 2011 | 93 | 61 | 11 | 10 | 0.00 | 37 | 9 | 29 | — | — | 3 | 60 | — | -58 | 684 |
| 2010 | 43 | 27 | -28 | -30 | -0.05 | -8 | 2 | -9 | — | — | 1 | 29 | — | -71 | 564 |
Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.