What is ServiceNow's subscription — total cost of revenues?

ServiceNow (NOW) reported subscription — total cost of revenues of $820.00M in Q1 2026.

How has ServiceNow's subscription — total cost of revenues changed year-over-year?

ServiceNow's subscription — total cost of revenues increased by 46.2% year-over-year, from $561.00M to $820.00M.

What is the long-term trend for ServiceNow's subscription — total cost of revenues?

Over 4 years (2021 to 2025), ServiceNow's subscription — total cost of revenues has grown at a 25.9% compound annual growth rate (CAGR), from $1.02B to $2.57B.

What does subscription — total cost of revenues mean?

The direct costs incurred to provide and maintain the subscription software services for customers.

Products & Services · Total cost of revenues

Subscription — Total cost of revenues

ServiceNow Subscription — Total cost of revenues increased by 14.4% to $820.00M in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 46.2%, from $561.00M to $820.00M. Over 4 years (FY 2021 to FY 2025), Subscription — Total cost of revenues shows an upward trend with a 25.9% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementSegment

CategoryEfficiency

SignalLower is better

VolatilityModerate

First reportedQ1 2016

Last reportedQ1 2026Apr 23, 2026

Rolls up toTotal Cost of Revenue

How to read this metric

A decrease relative to revenue indicates improved operational efficiency and economies of scale, while an increase may suggest rising infrastructure or support costs.

Detailed definition

This metric captures the direct costs associated with delivering the subscription software services, including cloud inf...

Peer comparison

Comparable to Cost of Subscription Revenue or Cost of Goods Sold (COGS) for SaaS companies.

Metric ID: now_segment_subscription_total_cost_of_revenues

Historical Data

20 periods

	Q2 '21	Q3 '21	Q4 '21	Q1 '22	Q2 '22	Q3 '22	Q4 '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	$248.00M	$264.00M	$282.00M	$275.00M	$287.00M	$301.00M	$324.00M	$354.00M	$389.00M	$420.00M	$443.00M	$441.00M	$469.00M	$496.00M	$536.00M	$561.00M	$625.00M	$666.00M	$717.00M	$820.00M
QoQ Change	—	+6.5%	+6.8%	-2.5%	+4.4%	+4.9%	+7.6%	+9.3%	+9.9%	+8.0%	+5.5%	-0.5%	+6.3%	+5.8%	+8.1%	+4.7%	+11.4%	+6.6%	+7.7%	+14.4%
YoY Change	—	—	—	—	+15.7%	+14.0%	+14.9%	+28.7%	+35.5%	+39.5%	+36.7%	+24.6%	+20.6%	+18.1%	+21.0%	+27.2%	+33.3%	+34.3%	+33.8%	+46.2%

Range$248.00M – $820.00M

CAGR+28.6%

Avg YoY Growth+27.8%

Median YoY Growth+28.0%

Current Streak8 quarters growth

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Frequently Asked Questions

What is ServiceNow's subscription — total cost of revenues?: ServiceNow (NOW) reported subscription — total cost of revenues of $820.00M in Q1 2026.
How has ServiceNow's subscription — total cost of revenues changed year-over-year?: ServiceNow's subscription — total cost of revenues increased by 46.2% year-over-year, from $561.00M to $820.00M.
What is the long-term trend for ServiceNow's subscription — total cost of revenues?: Over 4 years (2021 to 2025), ServiceNow's subscription — total cost of revenues has grown at a 25.9% compound annual growth rate (CAGR), from $1.02B to $2.57B.
What does subscription — total cost of revenues mean?: The direct costs incurred to provide and maintain the subscription software services for customers.