Is NOW (ServiceNow, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NOW is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (2.94% vs ≤33% threshold), interest income ratio (3.40% vs ≤5% threshold), and cash & securities ratio (5.76% vs ≤33% threshold).

ServiceNow is a global leader in enterprise cloud computing, best known for its Now Platform which helps large organizations automate complex digital workflows. While they started in IT Service Management (ITSM), they have expanded heavily into HR, customer service, and security operations, utilizing AI and machine learning to streamline how big companies operate. Essentially, they provide the digital backbone that allows departments within an enterprise to communicate and execute tasks efficiently, replacing outdated manual processes. For Muslim investors, ServiceNow is currently classified as Halal, having passed all four critical AAOIFI screening standards. The company's core business of selling software subscriptions and professional services is inherently permissible, free from haram elements like gambling, alcohol, or conventional banking. This makes it an attractive option for those seeking exposure to the high -growth software sector without compromising Islamic principles. From a financial perspective, ServiceNow maintains a very clean balance sheet with a debt-to-market cap ratio of only 2.9%, significantly lower than the 33% maximum threshold . However, investors should keep an eye on the interest income ratio, which currently sits at 3.40%; while this is below the 5% limit, rising global interest rates could push cash-rich tech companies closer to this boundary. The company's low reliance on interest-bearing debt is a major positive indicator of financial health and shariah alignment . Going forward, investors should monitor the company's cash management strategies, specifically how much interest income they generate from their cash reserves. Since they are a cash-generative software business, their treasury management is the primary area where compliance risks could emerge if interest earnings spike relative to total revenue. Currently, however, the stock remains a compliant and robust choice for ethical portfolios . ServiceNow, Inc. operates in the Technology sector under the Software - Application industry and is headquartered in Santa Clara, CA, US. The company is led by CEO William R. McDermott and employs approximately 26,293 people.

NOW was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. NOW passed 4 of these 4 screens.

Although NOW passes all shariah screens, it does earn $451.0M in interest income (3.40% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $3.40 to purify the income.

NOW was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.