ServiceNow Price To Book vs. Net Income
| NOW Stock | USD 112.92 -0.05 -0.04% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.7753 |
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The profitability summary for ServiceNow compares income to revenue, assets, operating costs, and equity.
ServiceNow | Build AI portfolio with ServiceNow Stock |
Revenue by Earning Segment - ServiceNow
Correlation Analysis.
Macro event markers
ServiceNow Revenue by Earnings Segment Snapshot
The estimates help frame performance context across reporting periods. The estimates are provided as neutral context for research workflows and timeframe comparisons.
Quarterly Earnings Growth 0.034 | Earnings Share 1.67 | Revenue Per Share | Quarterly Revenue Growth 0.207 | Return On Assets |
Understanding ServiceNow includes distinguishing between market value and book value, where book value reflects ServiceNow's accounting equity. ServiceNow's market capitalization is 122.01 B. With a P/B ratio of 9.33, the market values ServiceNow well above its book equity. Enterprise value stands at 117.07 B. Value and price for ServiceNow are related but not identical, and they can diverge across cycles. Trading price represents the transaction level agreed by market participants.
The concept of value for ServiceNow differs from its quoted price, since each reflects a different lens. For ServiceNow, key inputs include a P/E ratio of 415.52, a P/B ratio of 9.33, a profit margin of 13.17%, and ROE of 15.49%. Market price reflects the current exchange level formed by active bids and offers.
ServiceNow Net Income vs. Price To Book Fundamental Analysis
Relative valuation frameworks assess ServiceNow's pricing compared to industry averages. ServiceNow is rated below average for price to book across the peer group. It falls in the fifth position for net income across the peer group reflecting a 187,360,659 ratio of Net Income to Price To Book. Current projections place Net Income at 1.84 Billion, representing a change of 4.76%. Last year, ServiceNow recorded Net Income of 1.75 Billion. Relative financial indicators compare ServiceNow to direct competitors.ServiceNow's Historical Earnings Breakdown by Geography
ServiceNow Net Income vs. Price To Book
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
ServiceNow |
| = | 9.33 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
ServiceNow |
| = | 1.75 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
ServiceNow Net Income Comparison
ServiceNow is currently under evaluation for net income across the peer group.
ServiceNow Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in ServiceNow, profitability is also one of the essential criteria for including it into their portfolios because, without profit, ServiceNow will eventually generate negative long term returns. The profitability progress is the general direction of ServiceNow's change in net profit over the period of time. It can combine multiple indicators of ServiceNow, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 19 M | 19.9 M | |
| Operating Income | 1.8 B | 1.9 B | |
| Income Before Tax | 2.3 B | 2.4 B | |
| Total Other Income Expense Net | 437 M | 458.9 M | |
| Net Income | 1.7 B | 1.8 B | |
| Income Tax Expense | 513 M | 538.6 M | |
| Net Income Applicable To Common Shares | 1.7 B | 1.8 B | |
| Net Income From Continuing Ops | 1.7 B | 1.8 B | |
| Non Operating Income Net Other | 23 M | 12.1 M | |
| Interest Income | 451 M | 473.6 M | |
| Net Interest Income | 428 M | 449.4 M | |
| Change To Netincome | 1.6 B | 1.7 B | |
| Net Income Per Share | 1.69 | 1.77 | |
| Income Quality | 3.11 | 3.27 | |
| Net Income Per E B T | 0.77 | 1.17 |
ServiceNow Profitability Driver Comparison
Understanding ServiceNow profitability drivers helps investors assess the sustainability of its earnings and business resilience. Unexpected events - including regulatory changes, economic disruptions, and commodity price swings - can significantly affect ServiceNow's financial outlook.
Earnings Estimation Breakdown
The forward earnings per share projection for ServiceNow is set at 0.97 based on consensus analyst estimates for ServiceNow. The projected range - from 0.81 at the bottom to 1.0138 at the top - illustrates the breadth of analyst opinion on ServiceNow's next quarter. EPS is calculated on a recurring basis to exclude distortions from non-repeating events.Last Reported EPS
0.81 Lowest | Expected EPS | 1.01 Highest |
Earnings Projection Consensus
For ServiceNow, the difference between the analyst consensus value estimate and the current market price can highlight relative opportunities or risks. An estimate above price may indicate the stock is underappreciated by current market sentiment. An estimate below price may signal that the market is pricing in a growth scenario that the underlying fundamentals do not yet support.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 44 | 89.21% | 0.92 | 0.97 | 1.67 |
Earnings History
The analyst consensus EPS for ServiceNow represents the average of individual estimates submitted by equity research professionals covering the company. As reporting dates approach, revisions to consensus can signal shifting confidence or updated management guidance. Monitoring revision trends alongside reported results provides a fuller picture of earnings momentum.ServiceNow Quarterly Gross Profit | 2.73 Billion |
Investors who believe in mean reversion view ServiceNow's price extremes not as permanent states but as temporary dislocations that create opportunities for disciplined, contrarian capital allocation.
Earnings per Share Projection vs Actual
ServiceNow's actual EPS reflects what the business genuinely earned per share in the most recently completed quarter. Expected EPS, produced by analysts covering ServiceNow, captures the market's consensus forecast for future periods. Higher profitability per share generally signals a stronger earnings engine; weighted share count normalizes for dilution or buybacks.Estimated Months Earnings per Share
For income investors with exposure to ServiceNow, EPS trend analysis provides essential context for dividend risk management. A pattern of rising EPS over multiple years is one of the most reliable predictors of durable dividend growth. Supplement EPS review with operating cash flow, payout ratio, and comparable company analysis for a complete income thesis.Quarterly Analyst Estimates and Surprise Metrics
For ServiceNow, the actual-versus-expected EPS comparison is the most immediate post-earnings market signal. Positive surprises frequently attract momentum buyers; negative surprises often accelerate selling across both retail and institutional holders. Analysts construct consensus estimates using revenue projections, cost assumptions, and tax rate modeling.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2026-01-28 | 2025-12-31 | 0.89 | 0.92 | 0.03 | 3 | ||
2025-10-29 | 2025-09-30 | 0.85 | 0.96 | 0.11 | 12 | ||
2025-07-23 | 2025-06-30 | 0.71 | 0.82 | 0.11 | 15 | ||
2025-04-23 | 2025-03-31 | 0.77 | 0.81 | 0.04 | 5 | ||
2025-01-29 | 2024-12-31 | 0.73 | 0.73 | 0.0 | 0 | ||
2024-10-23 | 2024-09-30 | 0.32 | 0.41 | 0.09 | 28 | ||
2024-07-24 | 2024-06-30 | 0.57 | 0.63 | 0.06 | 10 | ||
2024-04-24 | 2024-03-31 | 0.63 | 0.68 | 0.05 | 7 | ||
2024-01-24 | 2023-12-31 | 0.2 | 0.29 | 0.09 | 45 | ||
2023-10-25 | 2023-09-30 | 0.51 | 0.58 | 0.07 | 13 | ||
2023-07-26 | 2023-06-30 | 0.41 | 0.47 | 0.06 | 14 | ||
2023-04-26 | 2023-03-31 | 0.41 | 0.47 | 0.06 | 14 | ||
2023-01-25 | 2022-12-31 | 0.4 | 0.46 | 0.06 | 15 | ||
2022-10-26 | 2022-09-30 | 0.37 | 0.39 | 0.02 | 5 | ||
2022-07-27 | 2022-06-30 | 0.31 | 0.32 | 0.01 | 3 | ||
2022-04-27 | 2022-03-31 | 0.34 | 0.35 | 0.01 | 2 | ||
2022-01-26 | 2021-12-31 | 0.29 | 0.29 | 0.0 | 0 | ||
2021-10-27 | 2021-09-30 | 0.28 | 0.31 | 0.03 | 10 | ||
2021-07-28 | 2021-06-30 | 0.24 | 0.28 | 0.04 | 16 | ||
2021-04-28 | 2021-03-31 | 0.27 | 0.3 | 0.03 | 11 | ||
2021-01-27 | 2020-12-31 | 0.21 | 0.23 | 0.02 | 9 | ||
2020-10-28 | 2020-09-30 | 0.21 | 0.24 | 0.03 | 14 | ||
2020-07-29 | 2020-06-30 | 0.2 | 0.25 | 0.05 | 25 | ||
2020-04-29 | 2020-03-31 | 0.02 | 0.05 | 0.03 | 150 | ||
2020-01-29 | 2019-12-31 | 0.02 | 0.61 | 0.59 | 2950 | ||
2019-10-23 | 2019-09-30 | 0.18 | 0.2 | 0.02 | 11 | ||
2019-07-24 | 2019-06-30 | 0.13 | 0.14 | 0.01 | 7 | ||
2019-04-24 | 2019-03-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2019-01-30 | 2018-12-31 | 0.13 | 0.15 | 0.02 | 15 | ||
2018-10-24 | 2018-09-30 | 0.12 | 0.14 | 0.02 | 16 | ||
2018-07-25 | 2018-06-30 | 0.09 | 0.1 | 0.01 | 11 | ||
2018-04-25 | 2018-03-31 | 0.07 | 0.11 | 0.04 | 57 | ||
2018-01-31 | 2017-12-31 | 0.07 | 0.07 | 0.0 | 0 | ||
2017-10-25 | 2017-09-30 | 0.06 | 0.08 | 0.02 | 33 | ||
2017-07-26 | 2017-06-30 | 0.04 | 0.04 | 0.0 | 0 | ||
2017-04-26 | 2017-03-31 | 0.03 | 0.05 | 0.02 | 66 | ||
2017-01-25 | 2016-12-31 | 0.05 | 0.05 | 0.0 | 0 | ||
2016-10-26 | 2016-09-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2016-07-27 | 2016-06-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2016-04-20 | 2016-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2016-01-27 | 2015-12-31 | -0.06 | -0.05 | 0.01 | 16 | ||
2015-10-21 | 2015-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2015-07-29 | 2015-06-30 | -0.08 | 0.01 | 0.09 | 112 | ||
2015-04-16 | 2015-03-31 | -0.07 | -0.08 | -0.01 | 14 | ||
2015-01-28 | 2014-12-31 | 0.02 | 0.01 | -0.01 | 50 | ||
2014-10-22 | 2014-09-30 | 0.01 | 0.01 | 0.0 | 0 | ||
2014-07-30 | 2014-06-30 | -0.01 | -0.01 | 0.0 | 0 | ||
2014-04-23 | 2014-03-31 | -0.02 | -0.02 | 0.0 | 0 | ||
2014-01-29 | 2013-12-31 | -0.03 | -0.03 | 0.0 | 0 | ||
2013-10-23 | 2013-09-30 | -0.02 | 0.01 | 0.03 | 150 | ||
2013-07-31 | 2013-06-30 | -0.02 | -0.03 | -0.01 | 50 | ||
2013-04-24 | 2013-03-31 | -0.01 | -0.01 | 0.0 | 0 | ||
2013-01-30 | 2012-12-31 | -0.01 | -0.08 | -0.07 | 700 | ||
2012-10-24 | 2012-09-30 | -0.02 | -0.01 | 0.01 | 50 | ||
2012-08-01 | 2012-06-30 | -0.01 | -0.01 | 0.0 | 0 |
Use ServiceNow in pair-trading
Pair trading with ServiceNow can help investors hedge some company-specific exposure by balancing a long view with an offsetting position. The key question is whether the second leg adds real hedge value instead of just creating a more complex version of the same risk.
ServiceNow Pair Trading
ServiceNow Pair Trading Analysis
Sophisticated investors use correlation analysis to build ServiceNow replacement strategies that go beyond simple sector matching. Assets with similar factor exposures to ServiceNow provide the most accurate portfolio substitution during tax-loss harvesting periods.
Statistical correlation between ServiceNow and its peers is an essential input for mean-variance portfolio optimization. Lower correlation of ServiceNow with other holdings allows for a more efficient frontier with superior risk-adjusted returns.
Correlation analysis and pair evaluation for ServiceNow can support hedging context. This approach is commonly reviewed within sectors and across broader groups.Use Investing Themes to Complement your ServiceNow position
Using ServiceNow inside a theme workflow gives investors a structured way to compare related stocks, funds, ETFs, and crypto assets before allocating capital. The practical benefit is that the selected idea can be tuned either for higher upside or for tighter risk control.
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