NOW
ACCE-researchedOverview
ACCE thesis
ServiceNow operates the dominant workflow automation platform that digitizes and connects business processes across IT, HR, customer service, and security operations for enterprise customers. The company sits at the center of digital transformation initiatives, with switching costs that increase exponentially as organizations embed ServiceNow deeper into their operational fabric. Management expects to reach $15 billion in annual recurring revenue by 2026, driven by expanding use cases beyond IT service management into areas like employee workflows and AI-powered automation. Trading at 19x forward earnings despite 21% revenue growth, NOW offers compelling risk-adjusted returns as enterprises accelerate workflow digitization and the AI boom creates new automation opportunities across every business function.
- highEarnings decline significantEarnings YoY down 21.9% despite 24% revenue growth signals meaningful cost pressure or margin erosion at net income level.
- highOperating margin very thinOperating margin of only 4.1% for a 74.8% gross margin SaaS company implies heavy opex burden, leaving little buffer for downturns.
- moderateValuation above fair value rangeCurrent price $111.06 sits at the floor of the $115-$135 fair value range; trailing P/E 69.1x leaves limited margin of safety.
- moderateLow momentum ACCE scoreMomentum sub-score M:25/100 is notably weak; despite +20 score recovery from 26, overall 46/100 still signals poor near-term quality.
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Price
Valuation
INVESTORSix independent models converge on one confidence-weighted fair value, with full methodology and editable assumptions.
- +All six models: DCF, P/E and EV/EBITDA comps, Graham, dividend discount, residual income
- +Scenario bands, sensitivity tornado, and the 5-year historical valuation range
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Quality
INVESTORThe full quality picture: conviction breakdown, earnings quality, score history, and backtested returns.
- +Conviction score breakdown and earnings-quality grade
- +Growth / value / quality / momentum component scores
- +90-day score history and score-threshold backtests
Analysts
Wall Street consensus
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
- +Price-target low / average / high vs the current price, with implied upside
- +Forward revenue and EPS consensus by fiscal year
- +ACCE fair-value models lined up against the Street
Smart Money
PROFollow the institutions: 13F position changes, insider trades, and active 13D activist filings.
- +Quarter-over-quarter institutional position changes
- +Recent open-market insider transactions
- +Active 13D activist filings and top holders
Compare
Where it sits vs peers
Algorithmic peers (6)
| Ticker | Company | Mcap | P/E | ROE | D/E | Yield | Quality | |
|---|---|---|---|---|---|---|---|---|
| UBER | Uber Technologies Inc. Common Stock | $144.0B | 15.5 | 37.2% | 0.40 | 0.0% | - | Compare |
| SHOP.TO | Shopify | $164.7B | 87.1 | 15.5% | 0.00 | 0.0% | - | Compare |
| SHOP | Shopify Inc. Class A Subordinate Voting Shares | $165.3B | 86.8 | 15.5% | 0.00 | 0.0% | - | Compare |
| SNOW | Snowflake Inc. Common Stock | $117.3B | - | -48.1% | 1.21 | 0.0% | - | Compare |
| ADP | Automatic Data Processing Inc. Common Stock | $107.7B | 24.8 | 72.2% | 0.82 | 2.5% | - | Compare |
| CRM | Salesforce Inc. Common Stock | $195.8B | 21.8 | 19.4% | 0.24 | 0.7% | - | Compare |
Sector report card
Where NOW ranks against its sector peers on each metric.
News and Record
Press releases mentioning this company
- PR Newswire•Sep 15, 2026Perk Brings Its Spend Platform to U.S.: NYSE Content Update
- PR Newswire•Sep 15, 2026Perk Brings Its Spend Platform to U.S.: NYSE Content Update
- Business Wire•Sep 2, 2026Genesys Expands Ecosystem for Trusted Enterprise Agentic Experience Orchestration
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