Company Overview
ServiceNow provides a cloud software platform used by organizations to run and automate workflows across their operations. The business centers on delivering software capabilities that standardize processes and help teams manage work in a single system. It sells its platform to customers that need repeatable, controlled workflows at scale. With a market value around USD 104 billion, it operates at large-company scale.
Analysis of recent data
FundamentalsIn 2025, reported in USD, revenue reached USD 13.3 billion, with EBIT of USD 1.8 billion and net income of USD 1.7 billion. Revenue grew 20.9% year over year, while the cost structure remained software-like, shown by a 77.56% gross margin alongside a 13.74% operating margin and a 13.16% net profit margin on a trailing basis.
Cash on the balance sheet was USD 3.7 billion against total debt of USD 2.1 billion. Depreciation and amortization were USD 738 million, and the cash flow proxy was about USD 2.0 billion, placing cash generation in the same general neighborhood as reported earnings.
Valuation
DCF / MultiplesThe current price of USD 99.41 sits above the modeled DCF range, even under the stronger end of outcomes. Headline pricing also reflects elevated expectations, with a 59.39 P/E, a 7.82 price-to-sales ratio, and 39.59 EV/EBITDA.
Conclusion
TakeawayOperations are profitable, and the margin profile is clearly established. The balance sheet looks net-cash, which reduces financing pressure. The price assumes the business keeps compounding without many stumbles. Any slowdown in growth or margin slippage would hurt that setup. Overall, execution needs to stay unusually consistent from here.