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ServiceNow NOW Amortization of deferred commissions

Amortization of deferred commissions at other companies

Pegasystems logo
PegasystemsPEGA
$16.1M-13.0%
Salesforce logo
SalesforceCRM
$584M+7.2%
Workday, Inc. logo
Workday, Inc.WDAY
$79M+16.2%
Guidewire Software logo
Guidewire SoftwareGWRE
$8.51M+16.8%
Freshworks, Inc. logo
Freshworks, Inc.FRSH
$8.57M+13.0%
PagerDuty logo
PagerDutyPD
$5.2M-5.7%

Other financials

Income statement

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Revenue$3.8B+22.1%
Gross profit$2.8B+16.1%
Operating income$503.0M+11.5%
Net income$469.0M+2.0%
EPS (diluted)$0.45+2.3%

Balance sheet

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Cash & equivalents$2.7B-19.8%
Total debt$940.0M+3.4%
Total equity$11.7B+15.7%
Total assets$24.4B+16.3%

Cash flow

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Operating cash flow$1.7B-0.4%
CapEx$141.0M-31.2%
Free cash flow$1.5B+3.9%

Valuation

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Market cap$112.25B-47.6%
Enterprise value$110.48B-47.9%
P/E63.9×-65.2×
P/S-9.7×

Profitability

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Gross margin76.6%-2.4pp
Operating margin13.4%+0.5pp
Net margin12.6%-0.8pp
FCF margin33.2%+1.1pp

Returns & leverage

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Return on equity16.1%-0.8pp
Debt / equity0.1×0.0×
Current ratio0.8×-0.3×

Where this comes from

Reported directly by ServiceNow in its filing.

Tagged under the XBRL concept us-gaap:AmortizationOfDeferredSalesCommissions.

The official record: ServiceNow’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is ServiceNow's amortization of deferred commissions?
ServiceNow (NOW) reported amortization of deferred commissions of $168M in Q1 2026.
How has ServiceNow's amortization of deferred commissions changed year-over-year?
ServiceNow's amortization of deferred commissions increased by 15.9% year-over-year, from $145M to $168M.
What is the long-term trend for ServiceNow's amortization of deferred commissions?
Over 3 years (2021 to 2024), ServiceNow's amortization of deferred commissions has grown at a 23.2% compound annual growth rate (CAGR), from $294M to $550M.
What does amortization of deferred commissions mean?
This reflects the non-cash expense recognized as capitalized sales commissions are amortized over the expected period of benefit from the customer contract. It is a critical adjustment for SaaS companies that capitalize acquisition costs under accounting standards like ASC 340-40.