In a market crowded with cloud players and AI hopefuls, ServiceNow, Inc. (NYSE: NOW) stands out not just as a survivor—but a consistent compounder. With over $10.5 billion in annual revenue, explosive AI integration, and a loyal customer base, ServiceNow is turning workflow automation into a futuristic AI-powered engine.
Whether you’re a seasoned investor or a curious tech follower, here’s why NOW stock could be one of your best bets this year.
📊 Financial Performance: Breaking the $10B Barrier
ServiceNow had an exceptional 2024. Let’s break it down:
📅 Q4 2024 Snapshot
| Metric | Q4 2024 | Q4 2023 | YoY Growth | Q3 2024 | QoQ Growth |
|---|---|---|---|---|---|
| Revenue | $2.85B | $2.33B | +22% | $2.66B | +7% |
| Net Income | $295M | $250M | +18% | $280M | +5% |
| EBITDA | $620M | $516M | +20% | $585M | +6% |
🧾 Full-Year 2024
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Total Revenue: $10.5B (↑22%)
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Net Profit: $1.1B (↑20%)
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EBITDA: $2.3B (↑21%)
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EBITDA Margin: 21.8% (↑ from 21.1%)
💡 95% of revenue came from subscriptions—highlighting predictable, recurring cash flows.
⏳ 5-Year Growth at a Glance (2020–2024)
| Metric | 2020 | 2024 | CAGR |
|---|---|---|---|
| Revenue | $4.52B | $10.5B | 24% |
| Net Income | $119M | $1.1B | ~75% |
| EBITDA Margin | 18% | 21.8% | Improving |
ServiceNow not only grew revenue and profit at a fast pace, but also became more operationally efficient over time.
📦 $8.9 Billion Order Book (RPO) Shows Future Confidence
Remaining Performance Obligations (RPO) represent future contracted revenue—critical for SaaS valuation.
| Metric | Q4 2024 | Q4 2023 | YoY Growth |
|---|---|---|---|
| Total RPO | $8.9B | $7.5B | +19% |
| Current RPO (12 mo.) | $4.7B | $3.9B | +20% |
| Non-Current RPO | $4.2B | $3.6B | +18% |
✅ Backed by strong 98%+ renewal rates, cloud scalability, and $4.2B in cash, ServiceNow is fully capable of delivering this backlog.
🤖 Leading the AI Revolution with “Now Assist”
ServiceNow isn’t just riding the AI wave—they’re shaping it. Their AI roadmap is already generating revenue.
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Now Assist brings AI into HR, IT, and customer workflows.
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AI bookings rose 30% YoY in 2024.
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50% of R&D ($2B) is dedicated to AI in 2025.
Key AI Collaborations:
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🤝 Microsoft: Azure + Now integration
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🤝 NVIDIA: Generative AI for enterprise automation
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🤝 Salesforce: CRM + ITSM cross-platform solutions
🌍 Expansion: Sectors & Global Footprint
🏥 Key Sectors with Custom Solutions
| Sector | Offerings | YoY Growth |
|---|---|---|
| Healthcare | Compliance, coordination tools | +30% |
| Finance | Regulatory risk management | +25% |
| Manufacturing | Supply chain + asset workflows | +20% |
| Public Sector | U.S. federal and EU modernization contracts | +25% |
| HR Experience | Hybrid workforce onboarding | +25% |
🌐 Regional Expansion
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APAC: 28% growth (India & Japan data centers)
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Europe: 20% growth (GDPR-focused)
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LATAM & MENA: New early-stage markets (5% share)
💵 Cash Flow & Financial Health: Rock Solid
| Metric | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Operating Cash Flow | $2.8B | $2.4B | +16% |
| Free Cash Flow | $2.3B | $1.96B | +17% |
| CapEx | $500M | $450M | +11% |
🟢 Free cash flow margin: 22%
🟢 Funded $500M in share buybacks
🟢 Debt-to-equity ratio: 0.15 (very low)
📌 ServiceNow doesn’t need to repay debt soon (maturity: 2030). Cash flow funds AI, buybacks, and smart tuck-in acquisitions.
📈 Technical Outlook: Charting the Path to $1,500
| Level | Price |
|---|---|
| Support Levels | $850 / $750 / $650 |
| Resistance | $1,000 / $1,100 / $1,200 |
| RSI | 62 (Neutral – not overbought) |
| MACD | Bullish crossover |
| Volume Trend | +10% YoY (buyer interest) |
🔮 Price Forecasts
| Timeframe | Price Target |
|---|---|
| Short-Term | $1,000 |
| Medium-Term (12M) | $1,100–$1,200 |
| Long-Term (2027) | $1,500–$1,700 |
💡 ServiceNow remains in a long-term uptrend with bullish technicals and strong institutional support (90% ownership).
💹 Valuation: Growth at a Premium
| Metric | Value | Meaning |
|---|---|---|
| P/E (TTM) | 78x | High, but backed by quality + momentum |
| Forward P/E | 65x | Based on $14.50 EPS for 2025 |
| P/S Ratio | 18x | Premium due to subscription model |
| PEG Ratio | 3.2 | Acceptable for high-growth tech |
📍 Not undervalued — but fair for long-term compounders.
📉 Entry points below $900 could be golden.
🔮 2025 Forecasts: Growth Still Going Strong
| Quarter | Revenue (Projected) | EPS (Projected) |
|---|---|---|
| Q1 | $2.95B | $3.20 |
| Q2 | $3.05B | $3.40 |
| Q3 | $3.15B | $3.60 |
| Q4 | $3.25B | $4.30 |
📊 2025 Full-Year Targets:
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Revenue: $12.2B (↑16%)
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EPS: $14.50 (↑20%)
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Net Income: $1.3B
✅ 10 FAQs About ServiceNow (NYSE: NOW) – 2025 Investor Edition
1. What is ServiceNow’s expected revenue for Q1 2025?
👉 Analysts project revenue between $2.995B–$3.0B, reflecting ~20% YoY growth in constant currency.
2. When will ServiceNow release its Q1 2025 results?
📅 April 23, 2025, after the market closes. A conference call follows at 5:00 PM ET.
3. What is the EPS forecast for Q1 2025?
🧾 Expected EPS is $2.01, a 10.4% YoY increase from $1.82 in Q1 2024.
4. How much revenue does ServiceNow generate from subscriptions?
💡 Over 95% of its total revenue comes from high-margin, recurring subscription contracts.
5. What is ServiceNow’s Remaining Performance Obligation (RPO)?
📦 As of Q4 2024, RPO stood at $8.9 billion, a clear indicator of future revenue visibility.
6. How is ServiceNow integrating AI into its platform?
🤖 With Now Assist, ServiceNow is embedding generative AI into IT, HR, and customer workflows, with AI bookings growing 30% YoY.
7. Is ServiceNow expanding internationally?
🌍 Yes. Asia-Pacific (APAC) saw 28% YoY revenue growth, and the company is expanding in Europe and emerging markets.
8. What is the company’s debt situation?
💼 Very healthy. Total debt is $1.5B, with a debt-to-equity ratio of 0.15 and interest coverage of 25x.
9. Is NOW stock overvalued?
📈 While its P/E of 78x seems high, its forward P/E of 65x and consistent 20%+ earnings growth justifies the premium for long-term investors.
10. What is the long-term stock forecast for ServiceNow?
🎯 Analysts and technical indicators suggest a potential target range of $1,500–$1,700 by 2027, assuming continued CAGR of 15%+ in revenue.
🏁 Conclusion: Should You Buy NOW?
✅ Yes, for long-term compounders.
ServiceNow is not just maintaining its lead—it’s expanding aggressively into AI, public sector, healthcare, and international markets.
With:
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🔁 Predictable cash flow
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🧠 Deep AI integration
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🧾 Strong RPO backlog
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📊 Technical momentum
…it’s one of the best-positioned enterprise software stocks for 2025 and beyond.
