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Research from Friday’s close · next update overnight after Monday’s close

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NOW

NOW Research brief

ServiceNow

Adjusted close as of 2026-10-30
$105.12(−4.15%)

Sagehood’s view on NOW

ServiceNow · Research 2026-10-30 · Accepted

Research score

36Bearish50 is balancedScore change −4 since 2026-10-29, from 40 to 36; view unchanged at Bearish. Compare the two recordsConfidence 60 · It is not a calibrated probability of investment success.Confidence across the 100 names in this research run: 45 to 70, median 55.
How to read this score

Dated research brief

WhyThe bearish view is driven by a margin squeeze, since operating margin fell 4.2 points while revenue grew 21.8%. The unresolved risk is that growth still tracks the 23.1% sector median, leaving the base value only 15% below the close.
What argues against this viewThe strongest case against the bearish view is the revenue growth still near the sector median. Trailing-twelve-month revenue grew 21.8% against a 23.1% sector median, and the base fair value of $89.1 sits only 15% below the $105.12 close.
Break conditionA later reading showing operating margin at or above the 23.2% sector operating-margin median would break the margin-compression claim.

Sagehood does not check this condition automatically. See research limitations below.

Valuation range

Close vs. model fair value · discounted cash flow

Bear
$30.20
Base
$89.10
Bull
$172.60

Base case −15% vs. the 2026-10-30 close, on fundamentals to 2026-09-30. Peer-implied median $97.79 from 3 peer-median multiples. Those medians include figures from another company that are withheld on its own page; see “Valuation & peers”. Estimates from this research’s valuation model, not a price target.

Against peers

Information Technology
MultipleNOWGroup medianPercentile
P/E (TTM)75.63×29.89×85th
P/S7.08×6.59×52nd
P/B8.35×8.30×52nd
FCF yield4.35%2.54%70th
Score details & research limitations9 unavailable fields
Conditions Sagehood can check on its ownNot available in this run. A written break condition is not an automated check; this run does not provide a source-linked rule Sagehood can verify on its own.

How to read this research

The score expresses the published research view. 50 is balanced.

Bullish, Neutral or Bearish beside the score is the direction of that view, set by the research from the score: 65 and above is Bullish, 45 to 64 Neutral, 44 and below Bearish.

Confidence is how well the evidence supports this view, not which way it points: Sagehood research is asked to keep it no higher than its most confident specialist, and lower when the specialists disagree or much of the evidence is weak. It is not a calibrated probability of investment success.

Source verification checks the identity and origin of evidence. It does not prove that a claim is correct or that an investment will succeed.

Valuation estimates depend on their inputs and assumptions. They are not guaranteed future prices.

Retrospective research looks back at an earlier period. It is not a verified record of a decision made then using only information available then.

Unavailable is not zero. Read the adjacent reason: information may be missing, unverified or deliberately withheld.

How Sagehood works

The session this view is fixed to

Close$105.12 on 2026-10-30, as the research recorded it
Change on the day−4.15%
First eligible market session2026-11-02

Recorded score context

Specialist source coverage8 of 10 specialists have a verified source on this run. 2 do not.
Score reconciliationThe 8 specialist contributions shown add up to the weighted starting point this score was built from.
Change since the last accepted run40 on 2026-10-29 → 36 on 2026-10-30 (−4 points). This is simple arithmetic between the two published scores, not an explanation of the change.
The run this is compared withResearch of 2026-10-29

Not in this run: Run-specific score definition, Confidence band, Horizon, Why the score changed, Today's unexplained move and Blockers.

What this was built from

Filing cited in the evidenceNot recorded on this card. The newest filing on record is under Key financials, and recent filings are listed under SEC filings.
Peer set27 names in Information Technology, listed with how they were chosen under “Valuation & peers”. The valuation range shows the peer-implied median from 3 peer-median multiples.

Not in this run: Company profile date and Standing disclosure.

Not available in this run

9 fields are unavailable. Each is identified with its reason above; missing information is not zero or a negative research signal.

Price context

· adjusted close $105.12

+17.4% from 2026-06-25

Recent price-basis check: 2026-10-02 to 2026-10-30 (20 sessions). Economic comparability outside this window remains unchecked.

NOW adjusted close
Adjusted price · USD · viewing 2026-06-25 to 2026-10-30

Selected 2026-10-30. NOW adjusted close. Continuous series. $105.12 US dollars.

90 daily adjusted-price observations through 2026-10-30, ending at the 2026-10-30 research date. The final point is a dated final close. Shown for context, not point-in-time research evidence: the research used the prices recorded with it.

Use the arrow keys on the chart to step through observations.

Published score history

2026-07-23 to 2026-10-30 · 37 publications

Each point is a verified published score. The line breaks where the research method changed (4 methods, numbered in the order they were first used), so scores are not joined across methods. Hollow points were published after their decision window (retrospective).

Every published score and confidence
Research dateScoreViewConfidenceMethod
2026-10-3036Bearish60Method 4
2026-10-2940Bearish49Method 4
2026-10-2854Neutral49Method 4
2026-10-2755Neutral49Method 4
2026-10-2654Neutral60Method 4
2026-10-2354Neutral55Method 4
2026-10-2258Neutral55Method 4
2026-10-2155Neutral55Method 4
2026-10-1654Neutral55Method 4
2026-10-0960Neutral62Method 4
2026-10-0750Neutral55Method 4
2026-10-0247Neutral58Method 4
2026-10-0152Neutral60Method 4
2026-09-3052Neutral58Method 4
2026-09-2952Neutral60Method 4
2026-09-2852Neutral60Method 4
2026-09-2554Neutral55Method 4
2026-09-24 · retrospective53Neutral55Method 4
2026-09-2354Neutral62Method 4
2026-09-1856Neutral65Method 4
2026-09-16 · retrospective55Neutral60Method 4
2026-09-09 · retrospective45Neutral50Method 4
2026-09-0456Neutral60Method 4
2026-09-01 · retrospective57Neutral70Method 4
2026-08-31 · retrospective55Neutral71Method 3
2026-08-2854Neutral71Method 3
2026-08-26 · retrospective54Neutral73Method 3
2026-08-24 · retrospective55Neutral73Method 3
2026-08-20 · retrospective53Neutral73Method 3
2026-08-19 · retrospective54Neutral73Method 3
2026-08-1453Neutral73Method 2
2026-08-1357Neutral63Method 1
2026-08-0756Neutral63Method 1
2026-08-0652Neutral60Method 1
2026-08-0452Neutral60Method 1
2026-07-3153Neutral54Method 1
2026-07-2349Neutral49Method 1

Specialists

8 of 10 published specialist analyses are available.

Each specialist’s view is shown as the published research recorded it; supporting detail appears only when it was recorded with that same view.

2 unavailable

NOW research

Financial specialist

Showing Financial specialist result.

Financial specialist

Evaluated for this session

Neutral

ServiceNow is growing revenue at 21.8% year over year, near the 23.1% sector revenue-growth median, but margins are contracting sharply: operating margin fell 4.2 percentage points and gross margin dropped 5.0 points.

Full analyst note

What the specialist sees

Evidence: trailing-twelve-month revenue of $15,431 million grew 21.8% year over year, near the 23.1% sector revenue-growth median, while operating margin contracted 4.2 percentage points and gross margin fell 5.0 percentage points.

Why it matters now

Revenue growth near the sector median combined with sharply contracting margins implies the company is spending heavily to sustain growth, which erodes profitability if the trend continues.

What could change the view

Countercase: The read would be wrong if the next filing shows operating margin recovering above the 23.2% sector operating-margin median or if free cash flow conversion falls below 1.01, since both would signal the margin compression is reversing rather than deepening. Falsifier: A later reading showing operating margin at or above the 23.2% sector operating-margin median would break the margin-compression claim.

Specialist score details
Specialist score
50
Evidence confidence
80
Base weight for this role
0.13
Base weight × confidence
10.40
Weight in the score (the chip's weight)
0.19
Weighted contribution
9.55
Business driver
Trailing-twelve-month revenue of $15,431 million grew 21.8% year over year, near the 23.1% sector revenue-growth median, while operating margin contracted 4.2 percentage points and gross margin fell 5.0 percentage points.
Mechanism
Revenue growth near the sector median combined with sharply contracting margins implies the company is spending heavily to sustain growth, which erodes profitability if the trend continues.
Countercase
The read would be wrong if the next filing shows operating margin recovering above the 23.2% sector operating-margin median or if free cash flow conversion falls below 1.01, since both would signal the margin compression is reversing rather than deepening.
Contributions & coverage details

Specialist contributions

Each specialist’s recorded numbers, in the usual specialist order, as recorded: nothing is re-ranked or recalculated. Weights and contributions show two decimals; hover for the exact value.

Financial specialist

Neutral

Score
50
Evidence confidence
80
Weight in the score
0.19
Weighted contribution
9.55

Risk specialist

Bearish

Score
28
Evidence confidence
55
Weight in the score
0.08
Weighted contribution
2.26

Sector specialist

Bearish

Score
38
Evidence confidence
45
Weight in the score
0.08
Weighted contribution
3.14

SEC filings specialist

Neutral

Score
50
Evidence confidence
55
Weight in the score
0.03
Weighted contribution
1.51

News specialist

Bearish

Score
38
Evidence confidence
72
Weight in the score
0.15
Weighted contribution
5.53

Price-trend specialist

Bearish

Score
30
Evidence confidence
60
Weight in the score
0.22
Weighted contribution
6.61

Valuation specialist

Neutral

Score
45
Evidence confidence
55
Weight in the score
0.16
Weighted contribution
7.27

Economy specialist

Neutral

Score
50
Evidence confidence
60
Weight in the score
0.09
Weighted contribution
4.41

Published specialist analyses unavailable: Geopolitics specialist, Social-media specialist. No specialist result is inferred.

  • Geopolitics specialist: This specialist had no checked public source on this run, so no source-backed analysis is shown.
  • Social-media specialist: This specialist had no checked public source on this run, so no source-backed analysis is shown.

How this insight was formed

Each specialist view shown here is checked against the published research files. Sagehood research combined those views into the one Research Score above.

Evidence & method

Inspect the reasoning, source records and valuation behind this dated view.

Sagehood research reasoningSpecialist reasoning, selected statements and filing context
Accepted publication2026-10-30 researchNext eligible session 2026-11-02point-in-time

NOW: Sagehood research reasoning

Accepted research score

36

Bearish50 is balanced
Lead specialist in the research decision:

Financial specialist

Neutral

Specialist score 50Evidence confidence 80
What the specialist sees

Trailing-twelve-month revenue of $15,431 million grew 21.8% year over year, near the 23.1% sector revenue-growth median, while operating margin contracted 4.2 percentage points and gross margin fell 5.0 percentage points.

Why it matters

Revenue growth near the sector median combined with sharply contracting margins implies the company is spending heavily to sustain growth, which erodes profitability if the trend continues.

What argues against it

The read would be wrong if the next filing shows operating margin recovering above the 23.2% sector operating-margin median or if free cash flow conversion falls below 1.01, since both would signal the margin compression is reversing rather than deepening.

This specialist’s break condition: A later reading showing operating margin at or above the 23.2% sector operating-margin median would break the margin-compression claim.

How the score was formed

The specialists’ weighted starting point was 40.27. Sagehood research’s adjustment was −4.27. 40 on 2026-10-29 → 36 on 2026-10-30 (−4 points). This is simple arithmetic between the two published scores, not an explanation of the change.

Evidence Sagehood research weighed

These selected claims are evidence Sagehood research weighed, not a reconstruction of the numeric adjustment.

Claims as this research published them. Sagehood confirms each claim and its support were published together with this research. That is not an independent check, and it does not prove the claim is accurate or predict future performance.

  1. Financial specialist

    Same statement as under “What the specialist sees” above.

  2. News specialist

    ServiceNow's guidance news on 2026-10-28 from Barrons.com and Bloomberg, both tier 1, produced a −26.57% excess reaction, and material-news net tone is −0.15 with bad-news days followed by underperformance 8 against good-news days followed by outperformance 7.

  3. Risk specialist

    NOW shows twenty-day annualized volatility 102.4% against sixty-day annualized volatility 75.0% with volatility trend rising, drawdown from the one-year high −43.8% versus maximum one-year drawdown −55.6%, one-year large daily-move count 51, and worst five-day return over one year −33.9%.

Sagehood research decision

The investment case, main risk and break condition are the ones shown under Sagehood’s view at the top of this page.

Recorded break condition
Break condition as kept in the decision trail

A later reading showing operating margin at or above the 23.2% sector operating-margin median would break the margin-compression claim.

Evidence & sourcesClaim-support availability, filing-context links and research method

NOW: This run has no checked links from its claims to their evidence. The specialists’ writing is shown as recorded, and no missing evidence is filled in.

Research evidence at a glance

Accepted specialist evidence · no score adjustment

Key figures

Fundamentals

Trailing-twelve-month revenue of $15,431 million grew 21.8% year over year, near the 23.1% sector revenue-growth median, while operating margin contracted 4.2 percentage points and gross margin fell 5.0 percentage points.

Valuation model

The base case pairs revenue growth of 16.2% with an FCF margin of 30.8% for a fair value of $89.1, while the close is $105.12 and the peer-implied median of $97.79 rests on 3 implied prices.

This analysis cites the peer-implied figure, whose sector median this page flags. See Valuation & peers.

Potential upside

  • ServiceNow is growing revenue at 21.8% year over year, near the 23.1% sector revenue-growth median, but margins are contracting sharply: operating margin fell 4.2 percentage points and gross margin dropped 5.0 points.

Potential downside

  • Base fair value of $89.1 sits 15% below the $105.12 close, with the bull case at $172.6 above it. Revenue CAGR of 22.4% over three years anchors the growth row, and the peer-implied median of $97.79 is close to the price.

See the note under Key figures above.

Questions to watch

  • A later reading showing operating margin at or above the 23.2% sector operating-margin median would break the margin-compression claim.

  • A later reading that shows revenue growth holding above 16.2% while the FCF margin stays at or above 30.8% would break the fair-value case.

Accepted research

Research dated 2026-10-30.

How this research was made

This research is AI-generated and is not investment advice.

Research date
2026-10-30
Valuation & peersInput limits notedFair-value cells, peer multiples and the inputs behind the range

Valuation the research computed

Against the 2026-10-30 close of $105.12 (recorded)

Fundamentals reference date: 2026-09-30.

Fair value by discounted cash flow, at the cells this run nominated.

Bear
$30.20−71% vs close
Base
$89.10−15% vs close
Bull
$172.60+64% vs close

Implied by the median of 3 peer-median multiples: $97.79 (−7% vs close)

Peers: the 27 Liquid 100 names in Information Technology that this run priced. Companies outside the Liquid 100 are not in the set.

The 27 names

AAPL, AMD, APH, AVGO, CRM, CRWD, CSCO, DELL, GEN, GLW, HPE, HPQ, INTC, KLAC, LRCX, MCHP, MRVL, MSFT, MU, NVDA, ON, ORCL, PLTR, QCOM, SMCI, SNDK, WDC.

Multiples against the peer group

Information Technology · 27 companies in the group

Sector median includes AVGO, whose per-share figure failed the share-basis check in this research.

  • Price to earnings (trailing twelve months)75.63×

    Peer median 29.89× · middle half 19.24× to 45.53× · 85th percentile of the group

  • Price to sales7.08×

    Peer median 6.59× · middle half 4.55× to 12.88× · 52nd percentile of the group

  • Price to book8.35×

    Peer median 8.30× · middle half 6.41× to 15.99× · 52nd percentile of the group

  • Free cash flow yield4.35%

    Peer median 2.54% · middle half 1.33% to 5.43% · 70th percentile of the group

This run declares Enterprise value to EBITDA and computes no value for it, for this company or for its peer group.

Evidence limits: 7 valuation inputs required conservative handling: another valuation input required conservative handling; depreciation and amortization were available but not used because this version does not compute an EV/EBITDA multiple.

Includes the currently displayed specialist or comparison, not every specialist. Dates and limitations remain attached.

Sagehood research is for general information. It is not individualized investment advice or a recommendation to buy or sell any security.

ServiceNow (NOW) research | Sagehood