Aureus
AExcellent

ServiceNow, Inc.(NOW)

A

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin34.1%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 / FCF0.5xManageable debt load
Current Ratio1.00Adequate short-term liquidity
YoY FCF Growth+45.8%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (34.1%, 0.5x)
→
+1Strong YoY FCF growth (45.8% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.5x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (34.1%)
  • Net cash position ($1.3B)
  • Very low debt relative to cash flow (0.5x)
  • Strong YoY FCF growth (+45.8%)
  • FCF trend is improving
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin34.1%
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 / FCF0.5xManageable debt load
Current Ratio1.00Adequate liquidity
Debt / Equity0.19Low leverage

Quarterly FCF Trend

+45.8% YoYImproving (+45.8%)

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 Margin34.1%
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 / FCF0.5x
YoY FCF Growth+45.8%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance