Service Now

• Revenue: $2.80 billion, up 22% year-over-year.

• Net Income: $432 million, a significant increase from $210 million YoY.

• Gross Margin: Approximately 79%, indicating strong operational efficiency.

• EPS (Earnings Per Share): $2.07 (GAAP), surpassing analyst expectations.

• Free Cash Flow: $471 million, reflecting robust cash generation.

💰 Valuation Analysis

• P/E Ratio: Approximately 54x, higher than the industry average, reflecting a growth premium.

• P/S Ratio: Approximately 20x, indicating that the market values its revenue growth highly.

• Forward P/E: Approximately 48x, suggesting a continued growth trajectory.

• PEG Ratio: Approximately 1.8, highlighting a good balance between growth and valuation.

• Market Cap: $225 billion, solidifying its status as a mega-cap stock.

📈 Growth Metrics

• 2025 EPS Growth Forecast: ServiceNow is projected to see continued strong growth, driven by AI integration and expanding cloud services.

• Price Target: Analysts have set a consensus price target of $1,200, reflecting confidence in ServiceNow’s sustained performance.

🔍 Revenue Breakdown

1. Subscription Revenues (97%): $2.72 billion (+23% YoY)
• Growth driven by increased adoption of AI-powered enterprise solutions.

2. Professional Services and Other (3%): $82 million (+14% YoY)
• Steady growth in consulting and implementation services.

🔮 Forecast

Final Summary

• 🚀 Strong Buy: ServiceNow’s leading position in the enterprise software market, combined with its exceptional financial performance, make it a top-tier stock.

• 📊 Strong Financials: With substantial revenue and net income growth, ServiceNow’s financial health is outstanding.

• 💡 Valuation Justified: Despite high multiples, ServiceNow’s growth potential in AI and cloud services supports its valuation.

• ⚠️ Minor Risks: Watch for short-term market fluctuations due to high valuations and potential regulatory changes, but the long-term outlook remains highly positive.