Revenue
Revenue Recognized from Contract Liability
ServiceNow Revenue Recognized from Contract Liability increased by 300.0% to $3.20B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 23.1%, from $2.60B to $3.20B. Over 2 years (FY 2023 to FY 2025), Revenue Recognized from Contract Liability shows an upward trend with a 38.4% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementIncome Statement
SectionRevenue
CategoryGrowth
SignalHigher is better
VolatilityModerate
First reportedQ1 2018
Last reportedQ1 2026Apr 23, 2026
How to read this metric
Consistent conversion of contract liabilities into revenue indicates healthy project execution and fulfillment of customer obligations.
Detailed definition
Revenue recognized during the current period that was previously recorded as a contract liability (deferred revenue) at...
Peer comparison
Common in industries with long-term contracts or subscription-based models.
Metric ID:
anet_revenue_from_contract_liabilityHistorical Data
18 periods
| Q2 '21 | Q3 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.20B | $1.30B | $1.40B | $1.50B | $1.60B | $0.00 | $1.90B | $2.00B | -$8.70B | $2.20B | $2.40B | $2.50B | $600.00M | $2.60B | $2.80B | $3.00B | $800.00M | $3.20B |
| QoQ Change | — | +8.3% | +7.7% | +7.1% | +6.7% | -100.0% | — | +5.3% | -535.0% | +125.3% | +9.1% | +4.2% | -76.0% | +333.3% | +7.7% | +7.1% | -73.3% | +300.0% |
| YoY Change | — | — | — | +25.0% | +23.1% | -100.0% | +26.7% | +25.0% | — | — | +26.3% | +25.0% | +106.9% | +18.2% | +16.7% | +20.0% | +33.3% | +23.1% |
Range-$8.70B – $3.20B
CAGR+26.0%
Avg YoY Growth+20.7%
Median YoY Growth+25.0%
Revenue Recognized from Contract Liability at Other Companies
Frequently Asked Questions
- What is ServiceNow's revenue recognized from contract liability?
- ServiceNow (NOW) reported revenue recognized from contract liability of $3.20B in Q1 2026.
- How has ServiceNow's revenue recognized from contract liability changed year-over-year?
- ServiceNow's revenue recognized from contract liability increased by 23.1% year-over-year, from $2.60B to $3.20B.
- What is the long-term trend for ServiceNow's revenue recognized from contract liability?
- Over 2 years (2023 to 2025), ServiceNow's revenue recognized from contract liability has grown at a 38.4% compound annual growth rate (CAGR), from -$4.80B to $9.20B.
- What does revenue recognized from contract liability mean?
- Revenue earned this period that was paid for by customers in advance.