What is ServiceNow's contract assets?

ServiceNow (NOW) reported contract assets of $594M in Q2 2026.

How has ServiceNow's contract assets changed year-over-year?

ServiceNow's contract assets increased by 7.8% year-over-year, from $551M to $594M.

What is the long-term trend for ServiceNow's contract assets?

Over 5 years (2020 to 2025), ServiceNow's contract assets has grown at a 20.8% compound annual growth rate (CAGR), from $228.92M to $590M.

What does contract assets mean?

Revenue recognized under ASC 606 where the right to payment is conditional on something other than the passage of time — work performed but not yet billable.

ServiceNow NOW Contract Assets

Contract Assets at other companies

International Business MachinesIBM

$551M+18.5%

Open TextOTEX

$66.89M-5.6%

PegasystemsPEGA

$15.72M-5.8%

Guidewire SoftwareGWRE

$224.77M+34.7%

Freshworks, Inc.FRSH

$8.9M+23.6%

Workday, Inc.WDAY

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Other financials

Income statement

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Revenue$4.0B+24.0%

Gross profit$2.8B+13.1%

Operating income$162.0M-54.7%

Net income$298.0M-22.6%

EPS (diluted)$0.29-84.2%

Balance sheet

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Cash & equivalents$2.5B-19.7%

Total debt$8.5B+820%

Total equity$12.5B+14.5%

Total assets$31.7B+43.6%

Cash flow

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Operating cash flow$587.0M-18.0%

CapEx$114.0M-40.0%

Free cash flow$473.0M-10.1%

Valuation

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Market cap$102.12B-50.1%

Enterprise value$108.06B-46.6%

P/E61.2×-62.0×

P/S6.9×-10.0×

Profitability

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Gross margin74.8%-3.7pp

Operating margin11.4%-1.9pp

Net margin11.3%-2.4pp

FCF margin31.1%-0.8pp

Returns & leverage

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Return on equity14.2%-2.7pp

Debt / equity0.7×+0.6×

Current ratio0.7×-0.4×

Where this comes from

Reported directly by ServiceNow in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerAssetNetCurrent.

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

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Questions, answered.

What is ServiceNow's contract assets?: ServiceNow (NOW) reported contract assets of $594M in Q2 2026.
How has ServiceNow's contract assets changed year-over-year?: ServiceNow's contract assets increased by 7.8% year-over-year, from $551M to $594M.
What is the long-term trend for ServiceNow's contract assets?: Over 5 years (2020 to 2025), ServiceNow's contract assets has grown at a 20.8% compound annual growth rate (CAGR), from $228.92M to $590M.
What does contract assets mean?: Revenue recognized under ASC 606 where the right to payment is conditional on something other than the passage of time — work performed but not yet billable.