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ServiceNow NOW Free cash flow yield

Free cash flow yield at other companies

International Business Machines logo
International Business MachinesIBM
5.7%+0.2pp
Salesforce logo
SalesforceCRM
10.2%+5.2pp
Workday, Inc. logo
Workday, Inc.WDAY
9.4%+5.8pp
Oracle logo
OracleORCL
-5.9%-7.2pp
Atlassian logo
AtlassianTEAM
6.7%+4.1pp
Accenture logo
AccentureACN
11%+5.8pp

Other financials

Income statement

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Revenue$3.8B+22.1%
Gross profit$2.8B+16.1%
Operating income$503.0M+11.5%
Net income$469.0M+2.0%
EPS (diluted)$0.45+2.3%

Balance sheet

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Cash & equivalents$2.7B-19.8%
Total debt$940.0M+3.4%
Total equity$11.7B+15.7%
Total assets$24.4B+16.3%

Cash flow

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Operating cash flow$1.7B-0.4%
CapEx$141.0M-31.2%
Free cash flow$1.5B+3.9%

Valuation

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Market cap$98.02B-33.5%
Enterprise value$96.25B-33.6%
P/E55.8×-40.0×
P/S-5.8×

Profitability

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Gross margin76.6%-2.4pp
Operating margin13.4%+0.5pp
Net margin12.6%-0.8pp
FCF margin33.2%+1.1pp

Returns & leverage

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Return on equity16.1%-0.8pp
Debt / equity0.1×0.0×
Current ratio0.8×-0.3×

Where this comes from

Calculated from ServiceNow’s reported figures.

Based on trailing twelve months.

The official record: ServiceNow’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is ServiceNow's free cash flow yield?
ServiceNow (NOW) reported free cash flow yield of 4.2% in Q1 2026.
How has ServiceNow's free cash flow yield changed year-over-year?
ServiceNow's free cash flow yield increased by 89.2% year-over-year, from 2.2% to 4.2%.
What is the long-term trend for ServiceNow's free cash flow yield?
Over 5 years (2020 to 2025), ServiceNow's free cash flow yield has grown at a 18.2% compound annual growth rate (CAGR), from 1.2% to 2.9%.
What does free cash flow yield mean?
The spendable cash the business throws off each year as a percentage of its market price.
How do you interpret free cash flow yield?
Higher yield can mean better value — you pay less for each dollar of cash generated. A useful sanity check against earnings-based multiples, which non-cash items can distort.
How does free cash flow yield compare across companies?
Comparable across cash-generative companies; less meaningful for firms in heavy-investment phases with temporarily negative FCF.