US equity markets recorded notable volatility in late July 2026, with the Dow Jones Industrial Average declining over 500 points on 23 July 2026, driven in part by significant selloffs in Alphabet and Tesla [Brief - 2026-07-26]. A separate SEC filing for ServiceNow Inc. triggered a prior report in August 2026 [Brief - 2026-08-15]. These events formed the backdrop against which recent NOW filings and ownership changes have been assessed for this report.
For the trailing twelve months ending 30 June 2026, ServiceNow reported revenue of $14.73 billion, representing year-over-year growth of 24.0%, with a gross margin of 74.8% and an operating margin of 11.4% [SEC 10-Q - NOW - 2026-06-30]. Net income for the same period was $1.67 billion, producing a net margin of 11.3%. EPS declined 21.6% year-over-year. The company held $2.50 billion in cash against total debt of $7.52 billion. The market capitalisation stood at approximately $135.6 billion, with a P/E ratio of 81.98 [SEC 10-Q - NOW - 2026-06-30].
Insider activity in September 2026 recorded 46 transactions with a net selling direction, totalling a net disposed value of approximately $1.94 million [SEC Form 4 - NOW - 2026-09]. On the institutional side, five notable funds opened new positions in NOW during the most recent 13F reporting period: Citadel, Millennium, AQR Capital, Tiger Global, and Bridgewater each initiated positions [SEC 13F - Citadel - Q2 2026] [SEC 13F - Millennium - Q2 2026] [SEC 13F - AQR Capital - Q2 2026] [SEC 13F - Tiger Global - Q2 2026] [SEC 13F - Bridgewater - Q2 2026]. These simultaneous new entries by multiple institutional managers represent a material change in the ownership profile of the stock.
The prevailing macro environment reflects a 10-year US Treasury yield of 4.83% and a 2-year yield of 4.39%, producing a normal yield curve spread of 44 basis points [FRED DGS10] [FRED DGS2]. This rate configuration constitutes the broader fixed-income context in which equity valuations, including those of high-P/E technology names such as NOW, are currently situated. This report was motivated by the concurrent insider selling activity and the material institutional position changes disclosed in recent 13F filings.