Aureus
AExcellent

ServiceNow, Inc.(NOW)

A

Financial data as of Dec 31, 2025Declining · Technology

FCF Margin19.4%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$4.5B
Revenue$13.3B
Net Cash$1.3BCash exceeds debt
Debt / FCF0.9xManageable debt load
Current Ratio1.00Adequate short-term liquidity
YoY FCF Growth-200.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (19.4%, 0.9x)
→
-1Significant YoY FCF decline (-200.0%)
→
-0.5Highly volatile FCF (consistency: 1.34)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.9x)
→
+0.25Solid revenue growth (24.0% YoY)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (19.4%)
  • Net cash position ($1.3B)
  • Very low debt relative to cash flow (0.9x)
  • Strong revenue growth (24.0% YoY)

Concerns

  • Significant YoY FCF decline (-200.0%)
  • Highly volatile quarterly FCF
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $2.0B stock-based compensation (43% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin19.4%
Net Margin13.2%
Operating CF Margin41.0%
CapEx Ratio6.9%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.3BCash exceeds debt
Debt / FCF0.9xManageable debt load
Current Ratio1.00Adequate liquidity
Debt / Equity0.19Low leverage

Quarterly FCF Trend

-200.0% YoYDeclining (-200.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameServiceNow, Inc.
SectorTechnology
Free Cash Flow$4.5B
Revenue$13.3B
Net Income$1.7B
Operating Cash Flow$5.4B
Capital Expenditure$911.0M
FCF Margin19.4%
Cash Conversion Rate—
Net Margin13.2%
Total Debt$2.4B
Total Cash$3.7B
Net Cash$1.3B
Current Ratio1.00
Debt / Equity0.19
Debt / FCF0.9x
YoY FCF Growth-200.0%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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