Is ServiceNow, Inc. (NOW) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.8% / 30% | 4.8% / 30% | 2.0% / 30% | 3.4% / 5% | ✓ HALAL |
| DJIM | 1.8% / 33% | 4.8% / 33% | 2.0% / 33% | 3.4% / 5% | ✓ HALAL |
| MSCI | 9.2% / 33% | 24.1% / 33% | 10.1% / 33% | 3.4% / 5% | ✓ HALAL |
| S&P | 1.8% / 33% | 4.8% / 33% | 2.0% / 33% | 3.4% / 5% | ✓ HALAL |
| FTSE | 9.2% / 33% | 24.1% / 33% | 10.1% / 50% | 3.4% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 77.5% | |
| Operating Margin | 16.5% | |
| Net Margin | 13.2% | |
| Return on Equity (ROE) | 15.5% | |
| Return on Assets (ROA) | 5.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $5.4B |
| Free Cash Flow | $4.5B |
| Total Debt | $2.4B |
| Debt-to-Equity | 18.5 |
| Current Ratio | 1.0 |
| Total Assets | $26.0B |
Price & Trading
| Last Close | $103.64 |
| 50-Day MA | $113.37 |
| 200-Day MA | $162.51 |
| Avg Volume | 18.1M |
| Beta | 1.0 |
|
52-Week Range
$98.00
| |
About ServiceNow, Inc. (NOW)
ServiceNow, Inc. provides cloud-based solution for digital workflows in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company provides asset management, integrated risk management, IT service management, Operational Technology management, Security Operations, strategic portfolio management, IT operations management products; customer service management product; field service management applications; and sales and order management services. It also offers human resources delivery; legal and contract operations; workplace service delivery products; app engine product; automation engine; platform privacy and security product; and source-to-pay operations. In addition, the company provides RaptorDB, a database built to manage workloads at scale; ServiceNow Impact that provides customers with software tools, guided plans, and AI-driven recommendations; customer support; and workflow data fabric. It serves government, financial services, healthcare and life science, manufacturing, Public Sector, retail, technology, and Telecom sectors through service providers and resale partners. The company has a strategic collaboration with Autonomize AI for the development of AI-driven healthcare solutions for payers and Cohesity, Inc. to develop, operate, and safeguard autonomous AI agents and data with enterprise-grade reliability. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.
Purification Calculator
As a halal stock with 3.40% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ServiceNow, Inc. (NOW) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ServiceNow, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is ServiceNow, Inc.'s debt ratio?
ServiceNow, Inc.'s debt ratio is 1.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 9.2%.
Does ServiceNow, Inc. require dividend purification?
Yes, ServiceNow, Inc. has an impermissible income ratio of 3.40%, which means 3.40% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are ServiceNow, Inc.'s key financial metrics?
ServiceNow, Inc. has a market capitalization of $104.9B, trailing P/E ratio of 59.5, and revenue of $13.3B. The company maintains a gross margin of 77.5% and a net margin of 13.2%. Return on equity stands at 15.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.