NOW
ServiceNow, Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong growth across revenue, net income, and EPS — all exceeding 20% year over year — and consistent sequential quarterly revenue gains drove meaningful positive contributions to the 47.2/100 composite score.
- Moderate profitability metrics, including a 13.2% net margin and 6.7% return on assets, provided a positive but constrained contribution to the overall score.
- The confirmed absence of a dividend and the macro theme assignment both scored zero, which structurally weighed on the composite and placed the stock in the Research Further category.
Why Not Higher
- ServiceNow does not pay a dividend — a confirmed company characteristic — and this factor scored zero, pulling down the composite despite strong growth and momentum.
- Profitability metrics, while positive, are moderate: a 13.2% net margin and 6.7% return on assets reflect a large asset base relative to earnings, which constrained the profitability score below the upper range.
Data Confidence
7 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $10,984,000,000 in FY2024 to $13,278,000,000 in FY2025, a gain of +20.9%. Net income rose +22.7% over the same period, from $1,425,000,000 to $1,748,000,000, while diluted EPS increased +21.9% from $1.37 in FY2024 to $1.67 in FY2025.
The model rewarded consistent double-digit expansion across revenue, net income, and earnings per share simultaneously, reflecting broad-based top- and bottom-line growth that fell just short of the highest tier.
In FY2025, ServiceNow reported a net margin of 13.2%, an operating margin of 13.7%, and a return on assets of 6.7%.
The model recognized positive but moderate profitability metrics; the margins indicate the company converts a meaningful share of revenue to profit, though the return on assets suggests the asset base is large relative to earnings, which likely constrained the score below the upper range.
Filing evidence currently available does not support a more specific explanation for this factor.
Quarterly revenue rose sequentially across all four periods: $3,215,000,000 in 2025Q2, $3,407,000,000 in 2025Q3, $3,568,000,000 in 2025Q4, and $3,770,000,000 in 2026Q1. Operating income followed a broadly upward path from $358,000,000 in 2025Q2 to $503,000,000 in 2026Q1, though net income showed some quarter-to-quarter variability, ranging from $385,000,000 in 2025Q2 to a high of $502,000,000 in 2025Q3 before settling at $469,000,000 in 2026Q1.
The model rewarded the unbroken sequential revenue acceleration and the general upward trend in operating income, while the modest net income variability across quarters likely prevented a perfect momentum score.
ServiceNow does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income and yield, a confirmed non-payer receives the minimum score on this factor regardless of other financial strengths.
ServiceNow is assigned to the Enterprise AI Software macro theme.
Although the company carries an active and currently prominent macro theme assignment, this assignment did not translate into a positive score under the model's current methodology for this factor.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
ServiceNow delivered strong double-digit growth in FY2025, with revenue rising 20.9% to $13,278,000,000 and net income climbing 22.7% to $1,748,000,000, reflecting broad-based top- and bottom-line expansion. Profitability metrics are positive but moderate, with a net margin of 13.2% and return on assets of 6.7%, suggesting a large asset base relative to earnings. Sequential quarterly revenue has accelerated uninterrupted through 2026Q1, reinforcing operational momentum, though the company pays no dividend and its Enterprise AI Software theme assignment did not contribute positively under the model's current methodology, both of which weighed on the composite score of 47.2/100.
Plain English
ServiceNow is growing fast — revenues and profits are both up more than 20% year over year — and its quarterly sales keep climbing every single quarter, but it doesn't pay dividends and some scoring factors didn't give it credit, so its overall research score lands in the middle of the range.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 20.9% year over year to $13,278,000,000 in FY2025, while net income rose 22.7% and diluted EPS increased 21.9%, demonstrating simultaneous top- and bottom-line expansion.
- Quarterly revenue has risen sequentially in every reported period, from $3,215,000,000 in 2025Q2 to $3,770,000,000 in 2026Q1, signaling durable and accelerating demand.
- Operating income followed a broadly upward path from $358,000,000 in 2025Q2 to $503,000,000 in 2026Q1, indicating improving operational leverage over time.
Bear Case
- Net margin of 13.2% and return on assets of 6.7% in FY2025 are positive but moderate, suggesting the company's large asset base constrains capital efficiency.
- Net income showed quarter-to-quarter variability — ranging from $385,000,000 in 2025Q2 to $502,000,000 in 2025Q3 before settling at $469,000,000 in 2026Q1 — introducing some earnings unpredictability.
- ServiceNow pays no dividend, which is a confirmed structural characteristic of the company, and this absence weighed on the composite score.
What Could Change the Picture
Bullish Triggers
- A sustained improvement in net margin or return on assets beyond the current 13.2% and 6.7% levels would signal that the large asset base is becoming more productive and could lift profitability scores.
- Continued unbroken sequential revenue acceleration beyond $3,770,000,000 in 2026Q1 would reinforce the momentum case and reduce concerns about earnings variability.
Bearish Triggers
- A deceleration in the sequential quarterly revenue trend — which has been unbroken through 2026Q1 — would undermine the primary momentum thesis supporting the current score.
- A meaningful compression in operating margins below the current 13.7% level would raise concerns about cost discipline given the already large asset base of $26,038,000,000.
Risk Profile
Medium RiskThe company carries total assets of $26,038,000,000 in FY2025, and the relatively modest return on assets of 6.7% suggests the asset base is large relative to current earnings, which could amplify downside if growth slows. While sequential quarterly revenue has risen consistently through 2026Q1, net income variability across recent quarters — swinging between $385,000,000 and $502,000,000 — introduces some uncertainty around near-term earnings predictability.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.