Subscription revenue growth rate and current remaining performance obligations (cRPO) growth as leading indicators of future revenue
Net new Annual Contract Value (ACV) bookings and large deal activity ($1M+ ACV deals)
Operating margin expansion trajectory and free cash flow margin progression toward 30%+ targets
AI product adoption metrics, particularly Pro Plus SKU attach rates and AI-powered workflow penetration
moderate - Enterprise software spending correlates with corporate profit growth and IT budget expansion, but mission-critical workflow automation sees more resilient demand than discretionary software. ServiceNow's 98%+ renewal rates provide downside protection, though new logo acquisition and expansion deal velocity slows during recessions. Typical enterprise sales cycles extend 3-6 months during economic uncertainty, impacting quarterly bookings volatility.
High sensitivity through valuation multiple compression rather than operational impact. As a high-growth SaaS company trading at 8.4x P/S, rising rates reduce present value of future cash flows and compress software sector multiples. Operationally, ServiceNow carries minimal debt (0.25x D/E) so financing costs are negligible, but customer financing decisions for large multi-year deals can be affected by corporate borrowing costs. The 45.9% one-year decline reflects broader SaaS multiple compression as 10-year yields rose from 1.5% to 4.5%.
AI disruption risk as generative AI could automate workflow creation, potentially commoditizing ServiceNow's low-code platform differentiation or enabling faster competitive alternatives
Hyperscaler competition as Microsoft, Salesforce, and Oracle expand workflow automation capabilities within their existing enterprise footprints, leveraging bundling advantages
Microsoft's Power Platform integration with Teams/Office 365 provides zero-friction workflow automation for 345M+ enterprise seats, threatening ServiceNow's expansion into non-IT workflows
growth - Investors seek durable 20%+ revenue growth, expanding margins, and secular enterprise digital transformation tailwinds. The 77.5% gross margin and capital-light model attract quality growth investors focused on Rule of 40 metrics (revenue growth + FCF margin). Recent 45.9% drawdown has shifted investor base from momentum to long-term growth-at-reasonable-price buyers seeking SaaS market leader at compressed multiples.
Trend
-12.1% vs SMA 50 · -39.2% vs SMA 200
Momentum
Accumulation pattern present — more buying days than selling over the past 20 sessions. Volume conditions support gradual price improvement.
Based on volume distribution analysis. Direct short interest data (short float %, days to cover) is not available in current data sources.
Analyst consensus estimates · Actuals replace estimates as reported
| Year | Revenue Est. | Rev Gth | EPS Est. | EPS Gth | Range | Analysts |
|---|---|---|---|---|---|---|
FY2025 | $13.2B $13.2B–$13.3B | — | $3.48 | — | ±2% | High29 |
FY2026(current) | $16.2B $16.1B–$16.2B | ▲ +22.1% | $4.16 | ▲ +19.5% | ±9% | High31 |
FY2027 | $19.2B $18.9B–$19.4B | ▲ +18.7% | $5.06 | ▲ +21.8% | ±11% | High31 |
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ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.
| Symbol | Price | Day % | Mkt Cap↓ | P/E | Rev Grw | Margin | ELO |
|---|---|---|---|---|---|---|---|
NOW◀ | $89.00 | +0.34% | $94.4B | 53.9 | +2088.5% | 1316.5% | 1476 |
| $220.78 | +1.97% | $5.3T | 44.4 | +6547.4% | 5560.3% | 1496 | |
| $294.80 | -0.22% | $4.3T | 35.1 | +642.6% | 2691.5% | 1484 | |
| $407.77 | -0.59% | $3.1T | 24.5 | +1493.2% | 3614.6% | 1471 | |
| $419.30 | -0.37% | $2.0T | 81.3 | +2387.4% | 3619.8% | 1498 | |
| $766.58 | +6.50% | $896.9B | 37.1 | +4885.1% | 2284.5% | 1533 | |
| $449.50 | +0.79% | $748.1B | 149.9 | +3433.8% | 1251.5% | 1520 | |
| Sector avg | — | +1.20% | — | 60.9 | +3068.3% | 2905.5% | 1497 |