ServiceNow - AI Stock Analysis

Analysis generated January 13, 2026

ServiceNow, Inc. (NYSE: NOW) is a leading provider of enterprise cloud services. The company's cloud-based platform and solutions deliver digital workflows that create great experiences and unlock productivity for over 6,000 enterprise customers worldwide. ServiceNow primarily helps organizations through its software-as-a-service (SaaS) offerings that automate enterprise IT operations, streamline processes, and enhance overall service delivery. With a market presence that encompasses multiple industries, ServiceNow has positioned itself as a cornerstone for modern digital transformation.

Fundamental Analysis

ServiceNow reported revenue of $3.41 billion for the last quarter. This represents a quarterly increase of 5.97%, which is a solid sign of growth and operational efficiency. Year-over-year, the revenue has surged by 21.81%, highlighting robust demand for its services in a growing market.

Net income for the last quarter was reported at $502 million, a significant 30.39% increase from the previous quarter. Compared to the same quarter last year, net income exhibited a growth rate of 16.20%. These numbers suggest that ServiceNow is not only increasing its revenue but also improving its profit margins.

EBITDA for the last quarter came in at $894 million, marking a notable 37.75% rise from the preceding quarter and an impressive 39.47% year-over-year increase. This strong EBITDA growth underlines the efficiency in the company's operations and its ability to convert revenue into earnings before interest, taxes, depreciation, and amortization.

On the downside, the current P/E ratio stands at 85.42, which may raise concerns about the stock being overvalued. A high P/E ratio often indicates elevated future growth expectations, but it can also signal caution among investors about potential overvaluation. Additionally, recent insider stock sales could be seen as a bearish signal, suggesting that even those closest to the company may lack confidence in its short-term stock performance.

Technical Analysis

The current stock price of ServiceNow is $138.19, reflecting a decrease of 20.13% month-over-month and 33.00% year-over-year. These declines could be alarming for both short-term and long-term investors, signaling possible distress in the stock's market perception.

The Simple Moving Average (SMA10) stands at $144.72, which is down from the previous SMA10 of $145.64, indicating a potential downward trend. Additionally, the Relative Strength Index (RSI) is at a high 94.2, reflecting an overbought condition that often precedes a bearish trend. This bearish outlook is further supported by the downward trend in both short-term and long-term stock prices.

Alternative Data Analysis

ServiceNow has approximately 979 open positions according to data from popular job boards, and this number has remained stable over the past few months. This consistency suggests a stable hiring climate, which can be interpreted as a positive signal of steady business operations.

Employee sentiment is highly positive, with an estimated 85% of employees holding a favorable outlook on the company's future. This high morale among the workforce can be a good indicator of internal stability and productive business culture.

The company’s website attracts about 3.6 million visitors per month with no meaningful changes recently, pointing towards a stable customer acquisition rate. However, the number of users downloading the ServiceNow mobile app has decreased by 50% in recent months, which could be concerning as it may indicate waning customer engagement.

On social media, ServiceNow's Instagram followers have increased by 8% recently, a positive sign indicating rising interest. Their Twitter follower count remains stagnant at 53,000. An AI score of 64 from AltIndex, which combines various analytical dimensions, suggests a buy signal.

Conclusion

While ServiceNow exhibits robust revenue, net income, and EBITDA growth, signaling strong fundamental performance, there are certain cautionary notes to consider. The high P/E ratio and recent insider sales may indicate overvaluation. Technical indicators also point to a bearish trend, with a concerning drop in stock price and a high RSI. On the alternative data front, employee sentiment and job posting stability are positive, but the decline in mobile app downloads suggests potential issues in customer engagement.

In summary, ServiceNow presents a mixed investment outlook. While its strong fundamentals suggest potential for long-term growth, caution should be exercised due to current bearish technical indicators and concerns about overvaluation. Investors may want to closely monitor these metrics and consider the risk before making investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.