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ServiceNow Inc (NOW)

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Upturn Advisory Summary
12/09/2025: NOW (2-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $1147.35
1 Year Target Price $1147.35
| 31 | Strong Buy |
| 10 | Buy |
| 5 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 9.98% | Avg. Invested days 44 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 177.66B USD | Price to earnings Ratio 103.08 | 1Y Target Price 1147.35 |
Price to earnings Ratio 103.08 | 1Y Target Price 1147.35 | ||
Volume (30-day avg) 47 | Beta 0.97 | 52 Weeks Range 678.66 - 1198.09 | Updated Date 12/9/2025 |
52 Weeks Range 678.66 - 1198.09 | Updated Date 12/9/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 8.28 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.67% | Operating Margin (TTM) 16.79% |
Management Effectiveness
Return on Assets (TTM) 5.65% | Return on Equity (TTM) 16.81% |
Valuation
Trailing PE 103.08 | Forward PE 45.25 | Enterprise Value 174254900320 | Price to Sales(TTM) 14.03 |
Enterprise Value 174254900320 | Price to Sales(TTM) 14.03 | ||
Enterprise Value to Revenue 13.76 | Enterprise Value to EBITDA 60.38 | Shares Outstanding 207481507 | Shares Floating 206997350 |
Shares Outstanding 207481507 | Shares Floating 206997350 | ||
Percent Insiders 0.16 | Percent Institutions 91.14 |
Upturn AI SWOT
ServiceNow Inc

Company Overview
History and Background
ServiceNow Inc. was founded in 2003 by Fred Luddy as an IT service management (ITSM) company. Initially focused on automating IT workflows, it has evolved into a cloud-based platform company offering a wide range of digital workflow solutions across IT, employee, and customer service management. Key milestones include its IPO in 2012 and significant expansion into new markets and product categories through organic growth and strategic acquisitions.
Core Business Areas
- IT Workflows: Provides solutions for IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), and IT Asset Management (ITAM) to streamline IT operations, enhance service delivery, and manage IT resources.
- Employee Workflows: Offers solutions for HR Service Delivery, Legal Service Delivery, and Workplace Service Delivery to automate and improve employee experiences across various departments.
- Customer Workflows: Delivers solutions for Customer Service Management (CSM) and Field Service Management (FSM) to enhance customer engagement, streamline service operations, and improve customer satisfaction.
- Creator Workflows: Enables customers to build custom applications and workflows on the ServiceNow platform, fostering innovation and digital transformation within organizations.
Leadership and Structure
ServiceNow is led by a management team with deep industry experience. Bill McDermott serves as the CEO, overseeing the company's strategic direction and global operations. The company operates with a matrixed organizational structure, aligning its various product lines, sales teams, and engineering departments to drive innovation and customer success.
Top Products and Market Share
Key Offerings
- ServiceNow Platform: The core of ServiceNow's offering, a cloud-based platform that enables organizations to digitize and automate workflows across IT, HR, customer service, and other business functions. It serves as a foundation for all its applications. Competitors include Salesforce (for CSM), Workday (for HR), and broad enterprise software providers.
- IT Service Management (ITSM): A flagship product suite that helps organizations manage IT incidents, requests, problems, and changes. It is a market leader in ITSM. Competitors include BMC Software, Ivanti, and Atlassian.
- IT Operations Management (ITOM): Tools to discover, map, and manage IT infrastructure, automate operational tasks, and ensure service health. Competitors include Dynatrace, Splunk, and SolarWinds.
- HR Service Delivery (HRSD): Automates HR processes, from onboarding to employee inquiries, improving HR efficiency and employee experience. Competitors include Workday, SAP SuccessFactors, and Oracle HCM.
- Customer Service Management (CSM): Connects customer service teams to the rest of the enterprise, enabling faster issue resolution and improved customer satisfaction. Competitors include Salesforce Service Cloud, Zendesk, and Oracle Service Cloud.
Market Dynamics
Industry Overview
ServiceNow operates in the enterprise software and cloud computing markets, specifically within the rapidly growing areas of digital workflow automation, IT Service Management (ITSM), Customer Relationship Management (CRM), and Human Capital Management (HCM). The industry is characterized by increasing demand for cloud-based solutions, AI-driven automation, and seamless digital experiences.
Positioning
ServiceNow is a leader in digital workflow automation, recognized for its robust platform and comprehensive suite of applications. Its competitive advantages lie in its integrated platform, strong customer relationships, extensive partner ecosystem, and ability to deliver tangible ROI to enterprises seeking to improve operational efficiency and employee/customer experiences. The company is well-positioned to capitalize on digital transformation trends.
Total Addressable Market (TAM)
The Total Addressable Market for ServiceNow's solutions is substantial and expanding, encompassing various segments of enterprise software. Analysts estimate the TAM for digital workflow automation and related areas to be in the hundreds of billions of dollars. ServiceNow aims to capture a significant portion of this market by expanding its product offerings and penetrating new industries and geographies. They are well-positioned to address this large and growing TAM.
Upturn SWOT Analysis
Strengths
- Dominant market position in ITSM and strong presence in ITOM, HRSD, and CSM.
- Powerful and integrated cloud-based platform that fosters sticky customer relationships.
- Strong revenue growth and high gross margins.
- Extensive partner ecosystem and a large, loyal customer base.
- Significant investment in R&D and innovation, including AI capabilities.
Weaknesses
- Relatively high cost of its solutions can be a barrier for smaller organizations.
- Dependency on continued strong execution and innovation to maintain market leadership.
- Potential for increased competition as market leaders expand their platforms.
- Integration complexities for some enterprise-level deployments.
Opportunities
- Continued expansion into new workflow areas and industries (e.g., healthcare, financial services).
- Leveraging AI and machine learning to further enhance platform capabilities and automation.
- Growth in international markets.
- Upselling and cross-selling to existing customer base with new modules and solutions.
- Acquisition of complementary technologies and companies to accelerate growth.
Threats
- Intensifying competition from established enterprise software vendors and emerging players.
- Economic downturns impacting enterprise IT spending.
- Cybersecurity threats and data privacy concerns related to cloud services.
- Changes in regulatory landscapes impacting cloud computing.
- Talent acquisition and retention challenges in the competitive tech landscape.
Competitors and Market Share
Key Competitors
- Salesforce (CRM)
- Microsoft (MSFT)
- Workday (WDAY)
- Atlassian (TEAM)
- BMC Software
Competitive Landscape
ServiceNow excels in its integrated platform approach and deep workflow automation capabilities, particularly in IT. Competitors like Salesforce have a strong hold in CRM and customer service, while Workday is a leader in HR. Microsoft offers a broad suite of enterprise tools that can overlap. ServiceNow's advantage lies in its ability to connect disparate workflows and provide a unified experience, but it faces intense competition from both broad enterprise software players and specialized niche providers.
Major Acquisitions
Glean
- Year: 2024
- Acquisition Price (USD millions): 220
- Strategic Rationale: To enhance its AI capabilities, particularly in enterprise search and knowledge management, integrating Glean's AI-powered enterprise search into its platform for better insight discovery and workflow automation.
Muraspec
- Year: 2023
- Acquisition Price (USD millions):
- Strategic Rationale: To strengthen its digital workflow solutions for the telecom industry by acquiring a leading provider of network infrastructure management software.
Pathstream
- Year: 2023
- Acquisition Price (USD millions):
- Strategic Rationale: To bolster its workforce transformation and digital skills development capabilities, enabling better employee upskilling and reskilling.
Lighthouse
- Year: 2023
- Acquisition Price (USD millions):
- Strategic Rationale: To expand its professional services capabilities and further support customer digital transformation journeys.
Cask
- Year: 2022
- Acquisition Price (USD millions): 300
- Strategic Rationale: To enhance its capabilities in cloud migration and management, strengthening its cloud solutions for enterprises.
Growth Trajectory and Initiatives
Historical Growth: ServiceNow has a history of robust double-digit revenue growth, consistently outperforming the broader software market. This growth has been fueled by its expansion from ITSM into adjacent enterprise workflows and by its successful adoption by large enterprises globally.
Future Projections: Analysts project continued strong revenue growth for ServiceNow in the coming years, driven by increasing demand for digital transformation, workflow automation, and the expansion of its platform into new use cases. The company is expected to maintain its leadership position and benefit from ongoing secular trends in cloud adoption and AI integration.
Recent Initiatives: Continued investment in Artificial Intelligence (AI) and Machine Learning to enhance platform capabilities and automate complex workflows.,Expansion of its Creator Workflows to empower customers to build custom applications and solutions.,Strategic partnerships and integrations to broaden its ecosystem and reach.,Focus on expanding its presence in key international markets and specific industry verticals.
Summary
ServiceNow Inc. is a strong player in the enterprise workflow automation market, leveraging its robust cloud platform to deliver solutions across IT, employee, and customer service. Its consistent revenue growth, high margins, and leading market positions in key segments like ITSM are significant strengths. However, it faces increasing competition and must continue to innovate, particularly in AI, to maintain its edge. Future growth will likely be driven by expanding into new workflows, international markets, and leveraging strategic acquisitions.
Similar Stocks
Sources and Disclaimers
Data Sources:
- ServiceNow Inc. Investor Relations Filings (10-K, 10-Q)
- Financial News Websites (e.g., Yahoo Finance, Bloomberg)
- Industry Analyst Reports (e.g., Gartner, Forrester)
- Company Press Releases and Official Website
Disclaimers:
This analysis is based on publicly available information and is for informational purposes only. It does not constitute financial advice. Market share data is an estimation and can vary based on reporting methodology. Financial metrics are subject to change and should be verified with official company filings.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ServiceNow Inc
Exchange NYSE | Headquaters Santa Clara, CA, United States | ||
IPO Launch date 2012-06-29 | Chairman & CEO Mr. William R. McDermott | ||
Sector Technology | Industry Software - Application | Full time employees 26293 | Website https://www.servicenow.com |
Full time employees 26293 | Website https://www.servicenow.com | ||
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform, an AI platform for digital transformation machine learning, robotic process automation, process mining, analytics, and low-code/no-code development tools. It also provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; and field service management applications. In addition, the company offers human resources, legal, and workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. Further, ServiceNow, Inc. develops and operates a mobile-enabled manufacturing application. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, IT services, technology, and Telecom sectors through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

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