Stocks / NOW
ServiceNow, Inc.'s 10-K, read.
Bob rates ServiceNow, Inc. (NOW) 62/100, lean bullish, on the 10-K filed January 29, 2026, updated through the 10-Q filed October 28, 2026.
ServiceNow is still growing fast, with 9-month revenue up about 22% and free cash flow near $2.75B, but the 2026 Armis and Veza acquisitions (about $8.8B in cash) have pushed debt to roughly $7.5B and added heavy amortization. GAAP operating income and net income fell sharply in Q3, so the investment case now depends on the acquisitions producing growth that justifies the higher costs and leverage.
- Q3 2026 GAAP operating income fell to $385M from $572M a year earlier, and net income fell to $277M from $502M, as acquisition amortization and higher costs weighed on margins.
- Intangible amortization jumped to $198M in Q3 2026 from $33M, and goodwill plus intangibles now total about $13.6B, which raises the risk of future impairments.
- Total debt rose from about $1.5B to roughly $7.5B after the May 2026 senior notes and commercial paper, and quarterly interest expense went from $6M to $81M.
- Armis (about $7.6B) and Veza (about $1.2B) were paid mostly in cash, which cut cash and marketable securities from about $10B to about $7B and makes integration execution important.
- One U.S. federal channel partner and systems integrator represented 20% of accounts receivable and 12% of Q3 revenue, a concentration risk tied to government procurement.
Not investment advice — general research, the same for every reader. You make your own calls.
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Read NOW in Bob →Last read October 30, 2026. Bob's Research is a financial publisher, not an investment adviser. Everything here is general research and education — not personalized advice, and not a recommendation to buy or sell any security. Ratings are the same for every reader. You make your own calls.