NOW: ServiceNow's $13B Backlog Defies SaaS Crash
ServiceNow (NYSE: NOW) has been caught in the brutal SaaS selloff that has hammered enterprise software stocks since mid-2025. At $108.01 per share, NOW trades 49% below its 52-week high of $211.48 and 37% below its 200-day moving average. The "Saaspocalypse" narrative — fears that AI will cannibalize traditional SaaS subscription revenue — has dragged even the highest-quality names into deep drawdowns. Yet ServiceNow's fundamentals tell a different story. The company just posted FY2025 revenue of $13.3 billion, generated $4.6 billion in free cash flow, and sits on a $13 billion remaining performance obligation backlog that provides exceptional revenue visibility. While the market prices NOW as though AI is an existential threat, ServiceNow is arguably the enterprise SaaS company best positioned to benefit from AI adoption — its Now Platform integrates AI agents directly into enterprise workflows that are notoriously difficult to displace. With the stock trading at 24.7x free cash flow and 8.5x sales — multiples not seen since the pandemic lows — the question for investors is whether this represents a structural re-rating of SaaS or an opportunity to own one of software's most durable franchises at a meaningful discount.