ServiceNow Inc. (NOW) 10-K Red Flags
Risk signals extracted deterministically from ServiceNow Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (18)
- Gross margin compression: Gross margin contracted +129.8%pp (from 831.0% to 701.2%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 31 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Restatement of financial statements: The term "restate" "financial statements" appears in 39 recent filing(s) (vs 8 in the prior period). This risk language is ongoing.
- Operating cash flow exceeds net income: OCF is 1.96x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 5 new risk-language term(s) detected in filing text: Going concern doubt, Substantial doubt about ability to continue, Impairment charge, Restructuring, Off-balance sheet arrangements.
- Ongoing high-severity risk language: Material weakness in internal controls, Restatement of financial statements.
- Market cap $109.62B at $106.32 per share.
- Trailing P/E 63.29, P/S 109.02, P/B 9.35.
- Price $106.32 — downtrend (below 200-DMA); 1-month momentum negative.
- RSI(14) 53.89.
- Composite risk: Elevated.
- Leverage debt/equity 0.13 (low).
- Gross margin compression: Gross margin contracted +129.8%pp (from 831.0% to 701.2%). This may reflect input cost inflation, pricing pressure, or product mix shift toward lower-margin segments.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Jan 29, 2026.
- Latest quarterly report (10-Q) filed Apr 23, 2026.
- 10 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference ServiceNow Inc.; broad institutional reporting.
- Recent filers include SOUNDPOST PARTNERS, LP, Saranac Partners Ltd, Parallax Volatility Advisers, L.P..
- 20 recent 13G passive institutional ownership notices.
Full NOW analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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