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ServiceNow, Inc. (NOW)

Technology Out of favour

ServiceNow provides a digital platform that helps large companies automate their internal workflows, from IT support to human resources.

$111.23

Is ServiceNow, Inc. a good stock for a UK beginner?

The honest version: ServiceNow provides a digital platform that helps large companies automate their internal workflows, from IT support to human resources.

No rating · no target price · nothing for sale here
Price-31.5%
Priced in USD - as a UK investor your £ return also moves with the pound-to-dollar exchange rate, on top of the share price itself.
52-week range-45% past year
$111.23
Low $81.24High $194.73
Where today's price sits versus its past year - context, not a signal.
If you had put $1,000 into ServiceNow, Inc.
$685-31%

Over about 2 years to 2026-07-31. This is the share price only; any dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
$115.00B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
28.00M
Day range: The lowest and highest price the shares traded at during the latest day.
$106.05 – $112.39
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
$81.24 – $194.73
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
69.1
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
0.0%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.96
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.96
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +1% past week · ▼ -45% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

ServiceNow becomes the standard operating system for all large enterprises.

The bear case

Technological obsolescence or a major shift in how businesses manage workflows.

What does ServiceNow, Inc. do?

Think of ServiceNow as the digital 'plumbing' for big businesses, helping them manage tasks like fixing broken laptops or onboarding new staff through a single, unified system. The income stream is a recurring subscription fee charged to companies for using their software, which has become essential for many large organisations. What will really move the needle is whether they can keep growing their customer base while managing the costs of developing new artificial intelligence features.

VQGMI
Factor profile

On our factor screen it looks strongest on quality and growth, and weakest on income.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 26Quality: How profitable and financially healthy the company is (higher = stronger). 59Growth: How fast revenue and earnings are growing (higher = faster). 46Momentum: How the share price has been trending recently (higher = stronger recent run). 30Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 16
Quick checks
What's strong
  • High gross margins indicate a very efficient business model.
  • Strong year-on-year revenue growth shows high demand.
  • Provides essential services that are difficult for companies to switch away from.
What to watch
  • Value screens low (26/100)
  • Momentum screens low (30/100)
  • Income screens low (16/100)
  • High reliance on large corporate budgets which can be cut during downturns.
  • Intense competition from other major technology firms.

What do ServiceNow, Inc.'s numbers mean?

Forward P/E
22.1
This suggests that for every pound of expected future earnings, investors are currently paying about 22 pounds for the share.
Gross Margin
76.6%
This shows that for every pound of sales, the company keeps over 76 pence after paying the direct costs of providing its software.
Revenue Growth
22.1%
This indicates the company's total sales grew by over a fifth compared to the previous year, showing strong demand for its services.
P/S
8.2
This ratio compares the company's total market value to its annual sales, helping to show how much investors are paying for each pound of revenue.

How much money does ServiceNow, Inc. make?

Revenue and profit by quarter, and how much of each sale turns into profit.

RevenueNet income
$0$996.75M$1.99B$2.99B$3.99BQ2 25Q3 25Q4 25Q1 26Q2 26
Gross margin
74.8%
Net margin
11.3%
Return on equity
14.2%

Does ServiceNow, Inc. pay a dividend?

No - ServiceNow, Inc. doesn't currently pay a dividend, so the whole return would rest on the share price. Plenty of growing companies reinvest their profits instead of paying them out - neither approach is better or worse, they're just different.

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Appears in
Technology shares, explained

What are the scenarios for ServiceNow, Inc.?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

$196$111$79today · $111▲ Bull · $120• Base · $111▼ Bear · $103in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+5% to +10%Stronger than expected quarterly subscription renewals.
Base
-2% to +2%Steady growth in line with current market expectations.
Bear
-5% to -10%A slowdown in corporate IT spending budgets.

What are the pros and cons of ServiceNow, Inc.?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • High gross margins indicate a very efficient business model.
  • Strong year-on-year revenue growth shows high demand.
  • Provides essential services that are difficult for companies to switch away from.
The catch3
  • Does not pay a dividend, so returns rely entirely on share price growth.
  • Earnings growth is currently quite low compared to revenue growth.
  • The share price has seen significant volatility over the past year.
Key risks3
  • High reliance on large corporate budgets which can be cut during downturns.
  • Intense competition from other major technology firms.
  • The risk that new AI developments might disrupt their current software model.
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: USD · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.