Is the business good?
How good a business is NOW?
ServiceNow earns 8.6% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.6%
Return on invested capital · cost of capital 9.0% · 0.36 points below what the capital costs: growth destroys value
- Operating margin
- 11%
Operating margin · Software - Application median 8.2% · 12 months to Q2 2026
- Cash conversion
- 2.74×
Cash conversion · 2.32× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.4% |
| FY2021 | 4.4% |
| FY2022 | 4.9% |
| FY2023 | 8.5% |
| FY2024 | 12% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 75%
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 11%
- Free cash flow margin
- 31%
- R&D as % of revenue
- 22%
- Revenue, trailing twelve months
- $14.7B
- Free cash flow, trailing twelve months
- $4.58B
- Net income, trailing twelve months
- $1.67B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #51 of 90 by Smart Score