Gross Retention

NOW▲ long

643 bpshigh4mo horizon

Thesis

ServiceNow's moat is not AI — it is the installed workflow graph: years of accumulated permissions, dependencies, approval chains, and institutional scar tissue that makes its platform the control plane for enterprise operations. As enterprises deploy AI agents, the unglamorous plumbing of identity, policy, system state and audit trails becomes the critical asset. Subscription revenue is 96.8% of total, cRPO grew 24.5% YoY, and the Now Assist $1B ACV target is on track.

What would prove this wrong

ServiceNow subscription revenue growth falls below 20% or cRPO growth drops below 20% in any reported quarter through FY2027

Unwind Conditions

[falsified]ServiceNow reports subscription revenue growth below 20% or cRPO growth below 20% in any quarterly filing through FY2027
[risk stop]Close drops 15% from open price

Status

2026-08-24pending review

Financial Analytics

Quantitative context for the qualitative thesis. Valuation is not the argument — it is the landscape against which the thesis plays out.

$128.67

MCap 133.0B

EV 136.6B

Rev +24.0% YoY (+22.4% CAGR)

66% of 52w high

Valuation

79.9x

P/E Trailing

25.7x

P/E Forward

2.9x

PE / Comp Median

vs Peers

Salesforce, Inc.

PE 24.4xGM 78%

Microsoft Corporation

PE 27.1xGM 68%

Atlassian Corporation

GM 86%

MedianPE 27.1x

Margins

74.8%

Gross

4.1%

Operating

11.3%

Net

Trendstable

Cash Flow & DCF

FCF Yield3.9%

DCF Sanity Check+32%

$169.59 implied

Current: $128.67 · WACC: 0.1% · Terminal: 3%

Sanity check only — not a price target.

Data as of 2026-08-24 14:14 UTC · Source: Yahoo Finance (via yfinance)

Evaluation

No evaluation data available.