When did ServiceNow split its stock?

ServiceNow's board approved a 5-for-1 split of its common stock on December 5, 2025, with an effective date of December 17, 2025.

How much did ServiceNow pay for Armis?

ServiceNow acquired Armis on April 20, 2026 for preliminary purchase price consideration of approximately $7.6 billion, settled in cash. It funded part of that with a $4.0 billion term loan, repaid in May 2026 mainly through an issue of notes.

How much debt does ServiceNow have?

At September 30, 2026, ServiceNow carried short-term debt of $2,086 million and long-term debt of $5,438 million, against long-term debt of $1,491 million and no short-term debt at December 31, 2025.

Valuation · DCF model

Is ServiceNow (NOW) stock undervalued?

Brief Equity's quick DCF model of ServiceNow, dated October 31, 2026, values the shares at about $136 today, about 29% above the share price of $105.12, the previous day's close. After its fall in October 2026 ServiceNow looks somewhat cheap, with a lot of risk: the view rests on its organic revenue growth, which it does not report, staying well above the 11.8% a year the share price implies.

All valuations →

By The Brief Equity Team · Model dated October 31, 2026 · Published October 31, 2026

Brief Equity valuation model card for ServiceNow (NOW): a DCF model with projected revenue, EBITDA, margins and free cash flow to 2028 and a value per share today. — The ServiceNow model card as captured on October 31, 2026: the model's value, the share price that day and the projection behind them.

The model's assumptions for ServiceNow

ServiceNow's fiscal year is the calendar year and it reports in US dollars. The model runs three years, to 2028, with revenue growing at the analyst consensus rate compounded from 2025 to 2028 and the EBITDA margin held at its 2025 level, which is measured after stock-based compensation. The second table sets the model's revenue beside analyst consensus revenue for the same years.

ServiceNow: model assumptions, 2026 to 2028 (revenue, EBITDA and free cash flow in USD billions)
	2026	2027	2028
Revenue, model	15.88	18.99	22.72
Revenue growth, model	19.6%	19.6%	19.6%
EBITDA, model	3.06	3.67	4.38
EBITDA margin, model	19.3%	19.3%	19.3%
Free cash flow, model	4.71	5.63	6.73

ServiceNow: model revenue and analyst consensus revenue, 2026 to 2028 (USD billions)
	2026	2027	2028
Revenue, model	15.88	18.99	22.72
Revenue, analyst consensus	16.23	19.24	22.71

Why ServiceNow looks undervalued

ServiceNow's shares look somewhat cheap at $105.12, their close on October 30, 2026, though the view carries a lot of risk.

ServiceNow's share price fell 26.9% on October 29, 2026, the day after it reported its third-quarter results. In those results it guided growth in current remaining performance obligations, the contracted revenue it expects to recognize over the next twelve months, to 18.5% in constant currency for the fourth quarter, down from 21% in the third quarter.

“We expect cRPO growth of 18.5% on a constant currency basis. This reflects a higher mix of on-prem deals and excludes a rising balance of T4C backlog, both of which contribute to revenue but not cRPO.”

Gina Mastantuono, Chief Financial Officer, ServiceNow third-quarter 2026 earnings call, October 28, 2026

In the model, ServiceNow's revenue grows at the analyst consensus rate of 19.6% a year through 2028 and its EBITDA margin stays at 19.3%, the 2025 level after stock-based compensation, and the discounted cash flows come to about $136 a share today, about 29% above the price. Holding the rest of the model unchanged, the share price of $105.12 implies revenue growth of 11.8% a year.

ServiceNow's revenue grew 22% in the first nine months of 2026, well above the growth rate the share price implies.

ServiceNow's 2026 revenue includes the businesses it acquired, Moveworks, Veza and Armis, from the dates of acquisition, and the company gives no organic growth figure. The view rests on its organic growth staying well above the 11.8% a year the share price implies.

What has to be true, and what would break it

ServiceNow looks somewhat cheap on this model while a few things hold, and the view fails if they stop holding.

What has to be true

ServiceNow's revenue growth stays well above 11.8% a year through 2028.
Its organic revenue growth, which it does not report, also stays well above 11.8% a year.

What would break it

Revenue growth falls toward 11.8% a year once the 2026 acquisitions sit in both years' figures.
The slowdown in current remaining performance obligations carries into revenue growth near 11.8% a year in 2027.

The parts of ServiceNow's business

ServiceNow reports one operating segment and splits its revenue between subscriptions and professional services, and the shares below cover the full year 2025.

ServiceNow by part, year ended December 31, 2025 against year ended December 31, 2024
	Share of revenue	Share of revenue growth
Subscription	97.0%	97.5%
Professional services and other	3.0%	2.5%

ServiceNow beside its peers

ServiceNow is compared here with ten companies chosen to cover enterprise workflow software, IT service management, security and IT operations.

CRM: Front-office workflow software
SAP: Enterprise resource planning on subscription
WDAY: Human resources and finance workflow software
TEAM: IT service management software
ADBE: Subscription software at scale
INTU: Subscription software at scale
ADSK: Subscription software at scale
PANW: Security software, where the Armis and Veza acquisitions point
CRWD: Security software
DDOG: IT operations software

Peer comparison table for ServiceNow (NOW) and ten enterprise software, security and IT operations companies, with each company's valuation multiples, revenue growth and margin. — ServiceNow beside Salesforce, SAP, Workday, Atlassian, Adobe, Intuit, Autodesk, Palo Alto Networks, CrowdStrike and Datadog on trailing multiples, as captured on October 31, 2026.

How the estimate moves with its assumptions

The two pictures below show how far the ServiceNow estimate moves when its assumptions change: one moves two assumptions at a time, and the other runs the model many times with growth, margin and the exit multiple drawn at random.

Sensitivity grids for ServiceNow (NOW): the per-share value as revenue growth, EBITDA margin, the exit multiple, the discount rate and terminal growth change. — How the ServiceNow estimate changes when two assumptions move together. The exit grids are discounted to today's dollars.

Monte Carlo distribution of per-share outcomes for ServiceNow (NOW), with the share price at the model's date and the median outcome marked. — The spread of outcomes for ServiceNow when growth, margin and the exit multiple vary at random.

Questions about ServiceNow

These questions about ServiceNow (NOW) are answered from the documents listed under Sources.

When did ServiceNow split its stock?: ServiceNow's board approved a 5-for-1 split of its common stock on December 5, 2025, with an effective date of December 17, 2025.
How much did ServiceNow pay for Armis?: ServiceNow acquired Armis on April 20, 2026 for preliminary purchase price consideration of approximately $7.6 billion, settled in cash. It funded part of that with a $4.0 billion term loan, repaid in May 2026 mainly through an issue of notes.
How much debt does ServiceNow have?: At September 30, 2026, ServiceNow carried short-term debt of $2,086 million and long-term debt of $5,438 million, against long-term debt of $1,491 million and no short-term debt at December 31, 2025.

Sources

The quotations and facts about ServiceNow (NOW) on this page rest on the documents below.

ServiceNow third-quarter 2026 results release, October 28, 2026
ServiceNow quarterly report (Form 10-Q) for the third quarter of 2026, October 28, 2026
ServiceNow third-quarter 2026 earnings call, October 28, 2026
ServiceNow's one-day share price fall on October 29, 2026, October 30, 2026
ServiceNow's closing price and fourth-quarter backlog guide, October 29, 2026, October 30, 2026

About this page

Brief Equity and its team hold no position in ServiceNow (NOW) as of October 31, 2026.

This page is research, not investment advice. It describes one model and the assumptions behind it, and market data is delayed. Read how these models are built and our editorial policy.