MSFT
Microsoft Corporation
MSFT has the edge over NOW overall, supported by stronger fundamentals and lower modeled downside.
NOW
ServiceNow, Inc.
NOW offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
NOW Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Stable | |
| Strong | |
| Under pressure |
NOW's revenue and cash flow are currently healthy, and its profitability is stable, but its balance sheet is under pressure.
MSFT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 25x | $523 | — |
| Cheap | 27x | $525 | +0.4% |
| Current | 27x | $523 | — |
| Fair | 34x | $652 | +25% |
| Expensive | 37x | $711 | +36% |
Historical ranges are pointers, not guarantees.
MSFT has the edge over NOW in the historical PE scenario, which offers more potential upside but is not a forecast.
NOW PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 22x | $101 | — |
| Current | 72x | $101 | — |
| Cheap | 83x | $115 | +14% |
| Fair | 141x | $196 | +95% |
| Expensive | 518x | $720 | +616% |
Historical ranges are pointers, not guarantees.
NOW's PE is in its cheap range at 72x. If earnings grow as analysts expect, today's price would be 22x next year's earnings.
MSFT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Moderate | |
| High |
Analysts expect strong earnings and revenue growth for MSFT, with profitability holding steady.
NOW Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Broad | |
| Moderate |
Analysts expect strong earnings and revenue growth for NOW, with profitability holding steady.
MSFT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $20.79 | +8.6% |
| Q3 2026 | $19.15 | +36% |
| Q2 2026 | $17.95 | +32% |
| Q1 2026 | $16.80 | +30% |
| Q4 2025 | $15.99 | +29% |
| Q3 2025 | $14.06 | +16% |
| Q2 2025 | $13.64 | +16% |
| Q1 2025 | $12.93 | +12% |
| Q4 2024 | $12.41 | +12% |
MSFT has the edge over NOW on earnings, with more consistent year-over-year improvement.
NOW Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $4.55 | +227% |
| Q3 2026 | $1.39 | -16% |
| Q2 2026 | $1.60 | +0.6% |
| Q1 2026 | $1.68 | +14% |
| Q4 2025 | $1.67 | +22% |
| Q3 2025 | $1.66 | +29% |
| Q2 2025 | $1.59 | +43% |
| Q1 2025 | $1.47 | -21% |
| Q4 2024 | $1.37 | -18% |
NOW's earnings per share have fallen from their peak: $1.39 over the past year, against $1.87 in early 2024.
MSFT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $92.3B | +19% |
| Q2 2026 | $90B | +18% |
| Q1 2026 | $82.9B | +18% |
| Q4 2025 | $81.3B | +17% |
| Q3 2025 | $77.7B | +18% |
| Q2 2025 | $76.4B | +18% |
| Q1 2025 | $70.1B | +13% |
| Q4 2024 | $69.6B | +12% |
MSFT's revenue has grown year over year every quarter since late 2020: $92.3B last quarter, up 19% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 50% | +0.9 points |
| Q2 2026 | 45% | +0.2 points |
| Q1 2026 | 46% | +0.7 points |
| Q4 2025 | 47% | +1.6 points |
| Q3 2025 | 49% | +2.3 points |
| Q2 2025 | 45% | +1.8 points |
| Q1 2025 | 46% | +1.1 points |
| Q4 2024 | 45% | +1.9 points |
MSFT has the edge over NOW on profitability, with a higher operating margin.
NOW Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $4.1B | +21% |
| Q2 2026 | $4B | +24% |
| Q1 2026 | $3.8B | +22% |
| Q4 2025 | $3.6B | +21% |
| Q3 2025 | $3.4B | +22% |
| Q2 2025 | $3.2B | +22% |
| Q1 2025 | $3.1B | +19% |
| Q4 2024 | $3B | +21% |
NOW has the edge over MSFT on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 9.4% | -7.4 points |
| Q2 2026 | 4.1% | -7.1 points |
| Q1 2026 | 13% | -1.3 points |
| Q4 2025 | 12% | -0.2 points |
| Q3 2025 | 17% | +1.8 points |
| Q2 2025 | 11% | +2 points |
| Q1 2025 | 15% | +1.8 points |
| Q4 2024 | 13% | +1.6 points |
NOW's operating margin was 9.4% last quarter, down 7.4 points from the same quarter a year ago.
MSFT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $18.6B | -27% |
| Q2 2026 | $19.6B | -23% |
| Q1 2026 | $15.8B | -22% |
| Q4 2025 | $5.9B | -9.3% |
| Q3 2025 | $25.7B | +33% |
| Q2 2025 | $25.6B | +9.6% |
| Q1 2025 | $20.3B | -3.2% |
| Q4 2024 | $6.5B | -29% |
MSFT's free cash flow has been positive every quarter for seven years: $60B over the past year, down 23% from the year before.
NOW Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $748M | +29% |
| Q2 2026 | $473M | -10% |
| Q1 2026 | $1.5B | +3.9% |
| Q4 2025 | $2B | +45% |
| Q3 2025 | $578M | +23% |
| Q2 2025 | $526M | +47% |
| Q1 2025 | $1.5B | +22% |
| Q4 2024 | $1.4B | +2.8% |
NOW has the edge over MSFT on cash flow, with more consistent year-over-year improvement.
MSFT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.1% | -7M shares |
| 1 year | -0.3% | -20M shares |
| 3 years | -0.2% | -16M shares |
| 5 years | -1.6% | -121M shares |
| Available history | -3.2% | -245M shares |
MSFT has 7.4B diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $4.4B |
| Q2 2026 | $4.6B |
| Q1 2026 | $4.6B |
| Q4 2025 | $7.4B |
| Q3 2025 | $5.7B |
| Q2 2025 | $4.5B |
| Q1 2025 | $4.8B |
| Q4 2024 | $5B |
MSFT spent $21B buying back its own shares over the past year, up 5.2% from the year before.
NOW Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.8% | +8.7M shares |
| 1 year | -0.4% | -4.5M shares |
| 3 years | +1.1% | +11.6M shares |
| 5 years | +2.7% | +27.4M shares |
| Available history | +5.8% | +56.9M shares |
NOW has the edge over MSFT on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | $2.2B |
| Q4 2025 | $597M |
| Q3 2025 | $584M |
| Q2 2025 | $361M |
| Q1 2025 | $298M |
| Q4 2024 | $296M |
NOW spent $2.8B buying back its own shares over the past year, up 83% from the year before.
MSFT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.1x | Very low |
| Q2 2026 | 0.1x | Very low |
MSFT has the edge over NOW on leverage, with a lower net debt burden relative to earnings.
NOW Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 2.6x | Moderate |
| Q2 2026 | 2.6x | Moderate |
| Q1 2026 | -0.5x | Net Cash |
| Q4 2025 | -0.9x | Net Cash |
| Q3 2025 | -0.5x | Net Cash |
| Q2 2025 | -0.7x | Net Cash |
| Q1 2025 | -0.9x | Net Cash |
| Q4 2024 | -0.4x | Net Cash |
NOW's net debt is about 2.6 years of its operating earnings (EBITDA), after holding more cash than debt a year ago.
MSFT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 62.1 | Neutral |
| Stochastic | 68.0 | Neutral |
MSFT's weekly RSI is 62 (neutral) and its Stochastic is 68 (neutral).
NOW Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 40.7 | Neutral |
| Stochastic | 5.4 | Oversold |
NOW's weekly RSI is 41 (neutral) and its Stochastic is 5 (oversold).
MSFT PE vs Technology Sector
| Metric | MSFT | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 28x | 2% below |
| PE % | 16 | 35 | 19 pts below |
MSFT has the edge over NOW on valuation relative to its sector.
NOW PE vs Technology Sector
| Metric | NOW | Sector median | Relative |
|---|---|---|---|
| PE | 72x | 28x | 160% above |
| PE % | 7 | 35 | 28 pts below |
NOW is trading at 72x earnings, a 160% premium to the Technology sector's median of 28x.
MSFT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $524.7 | 0.3% below |
| 20 week MA | $484.8 | 7.9% above |
| 50 week MA | $446.9 | 17% above |
| 100 week MA | $453.8 | 15% above |
| 200 week MA | $411.5 | 27% above |
MSFT has the edge over NOW on trend strength, trading above more of its moving averages.
NOW Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $127.4 | 21% below |
| 20 week MA | $123.9 | 19% below |
| 50 week MA | $119.0 | 15% below |
| 100 week MA | $153.4 | 34% below |
| 200 week MA | $145.0 | 31% below |
NOW is in a downtrend: it's below all five of its weekly moving averages, and 31% below its 200-week average.
MSFT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $159.0 | $222.8 | +40% |
| 2021 | $222.8 | $334.7 | +50% |
| 2022 | $334.7 | $238.7 | -29% |
| 2023 | $238.7 | $376.0 | +58% |
| 2024 | $376.0 | $430.5 | +14% |
| 2025 | $430.5 | $487.7 | +13% |
| 2026 YTD | $487.7 | $523.0 | +7.2% |
MSFT has the edge over NOW on returns for 2026, with the stronger performance.
NOW Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $57.4 | $110.8 | +93% |
| 2021 | $110.8 | $129.7 | +17% |
| 2022 | $129.7 | $76.4 | -41% |
| 2023 | $76.4 | $141.3 | +85% |
| 2024 | $141.3 | $216.3 | +53% |
| 2025 | $216.3 | $153.9 | -29% |
| 2026 YTD | $153.9 | $100.7 | -35% |
NOW is down 35% so far in 2026, after finishing higher in four of the previous six years.