Quick Read – ServiceNow is down 30% year-to-date despite 21% subscription revenue growth, a $12.85 billion forward-demand backlog, and four straight EPS beats. – Salesforce fell roughly a third this year making a defensive $3.6 billion acquisition, while Microsoft’s revenue…
owth trails ServiceNow’s by a wide margin. – A put/call ratio of 0.33 and 43 analyst buy ratings against 1 sell signal rare pre-earnings alignment between options desks and Wall Street. – ServiceNow (NYSE:NOW) at $112.86 as of July 13 stands out as a compelling setup for retirement-focused investors heading into the company’s July 22 report. The stock is down more than 23% year to date and more than 41% over the past year, while the underlying business is accelerating
That gap is the opportunity. Growth Is Accelerating Into the Report Q4 FY25 revenue grew 20.66% YoY to $3.568 billion, and current remaining performance obligations, the cleanest forward-demand metric in enterprise software, climbed 25% YoY to $12.85 billion. Management guided FY26 subscription revenue to $15.53 billion to $15.57 billion, with a 32% non-GAAP operating margin and a 36% free cash flow margin.
Now Assist net new ACV more than doubled YoY, and the company has beaten EPS estimates in all four quarters of FY25. CEO Bill McDermott called it a “Rule of 55+ profile”, and the math backs him up. Capital Return Is About to Get Loud The board authorized an additional $5 billion under the buyback in January and telegraphed an imminent $2 billion accelerated share repurchase.