Servicenow Inc Financials
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Servicenow Inc has an operating margin of 13.7%, meaning the company retains $14 of operating profit per $100 of revenue. This strong profitability earns a score of 69/100, reflecting efficient cost management and pricing power. This is up from 12.4% the prior year.
Servicenow Inc's revenue surged 20.9% year-over-year to $13.3B, reflecting rapid business expansion. This strong growth earns a score of 88/100.
Servicenow Inc carries a low D/E ratio of 1.01, meaning only $1.01 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 74/100, indicating a strong balance sheet with room for future borrowing.
Servicenow Inc's current ratio of 1.00 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 20/100, which could limit financial flexibility.
Servicenow Inc converts 34.5% of revenue into free cash flow ($4.6B). This strong cash generation earns a score of 100/100.
Servicenow Inc's ROE of 13.5% shows moderate profitability relative to equity, earning a score of 54/100. This is down from 14.8% the prior year.
Servicenow Inc scores 6.16, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($112.0B) relative to total liabilities ($13.1B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Servicenow Inc passes 3 of 9 financial strength tests. 3 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), neither operating efficiency signal passes.
For every $1 of reported earnings, Servicenow Inc generates $3.11 in operating cash flow ($5.4B OCF vs $1.7B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
This page shows Servicenow Inc (NOW) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Key Financial Metrics
Servicenow Inc generated $13.3B in revenue in fiscal year 2025. This represents an increase of 20.9% from the prior year.
Servicenow Inc's EBITDA was $2.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 32.9% from the prior year.
Servicenow Inc generated $4.6B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 34.0% from the prior year.
Servicenow Inc reported $1.7B in net income in fiscal year 2025. This represents an increase of 22.7% from the prior year.
Servicenow Inc earned $1.67 per diluted share (EPS) in fiscal year 2025. This represents an increase of 21.9% from the prior year.
Servicenow Inc held $3.7B in cash against $0 in long-term debt as of fiscal year 2025.
Servicenow Inc had 1.05B shares outstanding in fiscal year 2025. This represents an increase of 407.8% from the prior year.
Servicenow Inc's gross margin was 77.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.6 percentage points from the prior year.
Servicenow Inc's operating margin was 13.7% in fiscal year 2025, reflecting core business profitability. This is up 1.3 percentage points from the prior year.
Servicenow Inc's net profit margin was 13.2% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.2 percentage points from the prior year.
Servicenow Inc's ROE was 13.5% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 1.3 percentage points from the prior year.
Servicenow Inc invested $3.0B in research and development in fiscal year 2025. This represents an increase of 16.4% from the prior year.
Servicenow Inc spent $1.8B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 164.4% from the prior year.
Servicenow Inc invested $868.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 1.9% from the prior year.
NOW Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.6B+4.7% | $3.4B+6.0% | $3.2B+4.1% | $3.1B+4.4% | $3.0B+5.7% | $2.8B+6.5% | $2.6B+0.9% | $2.6B |
| Cost of Revenue | $834.0M+7.8% | $774.0M+6.9% | $724.0M+11.2% | $651.0M+3.2% | $631.0M+8.0% | $584.0M+5.8% | $552.0M+6.2% | $520.0M |
| Gross Profit | $2.7B+3.8% | $2.6B+5.7% | $2.5B+2.2% | $2.4B+4.8% | $2.3B+5.1% | $2.2B+6.7% | $2.1B-0.4% | $2.1B |
| R&D Expenses | $773.0M+3.1% | $750.0M+2.2% | $734.0M+4.4% | $703.0M+5.2% | $668.0M+6.7% | $626.0M-2.6% | $643.0M+6.1% | $606.0M |
| SG&A Expenses | $368.0M+44.3% | $255.0M-5.9% | $271.0M+18.3% | $229.0M-10.9% | $257.0M+14.2% | $225.0M-3.0% | $232.0M+4.5% | $222.0M |
| Operating Income | $443.0M-22.6% | $572.0M+59.8% | $358.0M-20.6% | $451.0M+20.6% | $374.0M-10.5% | $418.0M+74.2% | $240.0M-27.7% | $332.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $140.0M-27.1% | $192.0M+123.3% | $86.0M-9.5% | $95.0M+20.3% | $79.0M-6.0% | $84.0M+16.7% | $72.0M-7.7% | $78.0M |
| Net Income | $401.0M-20.1% | $502.0M+30.4% | $385.0M-16.3% | $460.0M+19.8% | $384.0M-11.1% | $432.0M+64.9% | $262.0M-24.5% | $347.0M |
| EPS (Diluted) | $-4.77 | $2.40+30.4% | $1.84-16.4% | $2.20+160.6% | $-3.63-275.4% | $2.07+64.3% | $1.26-24.6% | $1.67 |
NOW Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $26.0B+19.5% | $21.8B-1.2% | $22.1B+5.1% | $21.0B+2.9% | $20.4B+10.6% | $18.4B+1.2% | $18.2B+3.8% | $17.5B |
| Current Assets | $10.5B+25.2% | $8.4B-9.8% | $9.3B+0.1% | $9.3B+0.9% | $9.2B+19.4% | $7.7B-4.1% | $8.0B+8.8% | $7.4B |
| Cash & Equivalents | $3.7B+36.7% | $2.7B-12.8% | $3.1B-7.3% | $3.4B+46.2% | $2.3B+22.2% | $1.9B-12.7% | $2.2B+5.0% | $2.1B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $2.6B+69.7% | $1.5B-8.7% | $1.7B+24.8% | $1.4B-39.3% | $2.2B+71.3% | $1.3B-13.8% | $1.5B+16.2% | $1.3B |
| Goodwill | $3.6B+96.6% | $1.8B+2.4% | $1.8B+36.2% | $1.3B+2.5% | $1.3B-1.4% | $1.3B+4.2% | $1.2B+1.2% | $1.2B |
| Total Liabilities | $13.1B+24.7% | $10.5B-5.7% | $11.1B+2.6% | $10.8B+0.5% | $10.8B+17.8% | $9.1B-4.2% | $9.5B+1.1% | $9.4B |
| Current Liabilities | $10.4B+32.7% | $7.9B-7.4% | $8.5B+2.9% | $8.3B-1.2% | $8.4B+23.2% | $6.8B-5.4% | $7.2B+2.0% | $7.0B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $13.0B+14.7% | $11.3B+3.4% | $10.9B+7.8% | $10.1B+5.5% | $9.6B+3.4% | $9.3B+7.2% | $8.7B+6.9% | $8.1B |
| Retained Earnings | $5.2B+8.3% | $4.8B+11.6% | $4.3B+9.7% | $4.0B+13.2% | $3.5B+12.3% | $3.1B+16.1% | $2.7B+10.8% | $2.4B |
NOW Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $2.2B+175.3% | $813.0M+13.5% | $716.0M-57.3% | $1.7B+2.6% | $1.6B+143.7% | $671.0M+8.2% | $620.0M-53.8% | $1.3B |
| Capital Expenditures | $238.0M+1.3% | $235.0M+23.7% | $190.0M-7.3% | $205.0M-19.0% | $253.0M+25.2% | $202.0M-22.9% | $262.0M+94.1% | $135.0M |
| Free Cash Flow | $2.0B+246.0% | $578.0M+9.9% | $526.0M-64.3% | $1.5B+6.5% | $1.4B+194.7% | $469.0M+31.0% | $358.0M-70.3% | $1.2B |
| Investing Cash Flow | -$498.0M+9.6% | -$551.0M-30.3% | -$423.0M-94.9% | -$217.0M+70.6% | -$738.0M-12.2% | -$658.0M-77.4% | -$371.0M+49.5% | -$734.0M |
| Financing Cash Flow | -$739.0M-12.5% | -$657.0M-20.3% | -$546.0M-37.2% | -$398.0M+15.5% | -$471.0M-61.3% | -$292.0M-113.1% | -$137.0M+69.1% | -$443.0M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $597.0M+2.2% | $584.0M+61.8% | $361.0M+21.1% | $298.0M+0.7% | $296.0M+31.6% | $225.0M | $0-100.0% | $175.0M |
NOW Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.6%-0.7pp | 77.3%-0.2pp | 77.5%-1.4pp | 78.9%+0.3pp | 78.7%-0.5pp | 79.1%+0.1pp | 79.0%-1.0pp | 80.0% |
| Operating Margin | 12.4%-4.4pp | 16.8%+5.6pp | 11.1%-3.5pp | 14.6%+1.9pp | 12.7%-2.3pp | 14.9%+5.8pp | 9.1%-3.6pp | 12.8% |
| Net Margin | 11.2%-3.5pp | 14.7%+2.7pp | 12.0%-2.9pp | 14.9%+1.9pp | 13.0%-2.5pp | 15.4%+5.5pp | 10.0%-3.4pp | 13.3% |
| Return on Equity | 3.1%-1.4pp | 4.4%+0.9pp | 3.5%-1.0pp | 4.5%+0.5pp | 4.0%-0.6pp | 4.7%+1.6pp | 3.0%-1.3pp | 4.3% |
| Return on Assets | 1.5%-0.8pp | 2.3%+0.5pp | 1.8%-0.4pp | 2.2%+0.3pp | 1.9%-0.5pp | 2.3%+0.9pp | 1.4%-0.5pp | 2.0% |
| Current Ratio | 1.00-0.1 | 1.06-0.0 | 1.09-0.0 | 1.12+0.0 | 1.10-0.0 | 1.13+0.0 | 1.12+0.1 | 1.05 |
| Debt-to-Equity | 1.01+0.1 | 0.93-0.1 | 1.02-0.1 | 1.07-0.1 | 1.12+0.1 | 0.98-0.1 | 1.10-0.1 | 1.16 |
| FCF Margin | 56.0%+39.1pp | 17.0%+0.6pp | 16.4%-31.3pp | 47.7%+0.9pp | 46.7%+30.0pp | 16.8%+3.1pp | 13.6%-32.7pp | 46.3% |
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Frequently Asked Questions
What is Servicenow Inc's annual revenue?
Servicenow Inc (NOW) reported $13.3B in total revenue for fiscal year 2025. This represents a 20.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Servicenow Inc's revenue growing?
Servicenow Inc (NOW) revenue grew by 20.9% year-over-year, from $11.0B to $13.3B in fiscal year 2025.
Is Servicenow Inc profitable?
Yes, Servicenow Inc (NOW) reported a net income of $1.7B in fiscal year 2025, with a net profit margin of 13.2%.
What is Servicenow Inc's earnings per share (EPS)?
Servicenow Inc (NOW) reported diluted earnings per share of $1.67 for fiscal year 2025. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.
What is Servicenow Inc's EBITDA?
Servicenow Inc (NOW) had EBITDA of $2.6B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Servicenow Inc's gross margin?
Servicenow Inc (NOW) had a gross margin of 77.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Servicenow Inc's operating margin?
Servicenow Inc (NOW) had an operating margin of 13.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Servicenow Inc's net profit margin?
Servicenow Inc (NOW) had a net profit margin of 13.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Servicenow Inc's return on equity (ROE)?
Servicenow Inc (NOW) has a return on equity of 13.5% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Servicenow Inc's free cash flow?
Servicenow Inc (NOW) generated $4.6B in free cash flow during fiscal year 2025. This represents a 34.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Servicenow Inc's operating cash flow?
Servicenow Inc (NOW) generated $5.4B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Servicenow Inc's total assets?
Servicenow Inc (NOW) had $26.0B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Servicenow Inc's capital expenditures?
Servicenow Inc (NOW) invested $868.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Servicenow Inc spend on research and development?
Servicenow Inc (NOW) invested $3.0B in research and development during fiscal year 2025.
Does Servicenow Inc buy back shares?
Yes, Servicenow Inc (NOW) spent $1.8B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
How many shares does Servicenow Inc have outstanding?
Servicenow Inc (NOW) had 1.05B shares outstanding as of fiscal year 2025.
What is Servicenow Inc's current ratio?
Servicenow Inc (NOW) had a current ratio of 1.00 as of fiscal year 2025, which is considered adequate.
What is Servicenow Inc's debt-to-equity ratio?
Servicenow Inc (NOW) had a debt-to-equity ratio of 1.01 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Servicenow Inc's return on assets (ROA)?
Servicenow Inc (NOW) had a return on assets of 6.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Servicenow Inc's Altman Z-Score?
Servicenow Inc (NOW) has an Altman Z-Score of 6.16, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Servicenow Inc's Piotroski F-Score?
Servicenow Inc (NOW) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Servicenow Inc's earnings high quality?
Servicenow Inc (NOW) has an earnings quality ratio of 3.11x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Servicenow Inc?
Servicenow Inc (NOW) scores 67 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.