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ServiceNow NOW Contract Liabilities

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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$121.32B-35.9%
Enterprise value$127.26B-32.0%
P/E72.7×-41.3×
P/S8.2×-7.5×

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:ContractWithCustomerLiabilityNoncurrent.

The source filing: ServiceNow’s 10-Q, filed July 23, 2026.

Filed
Jul 22, 2026, 8:00 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001373715-26-000076
AssetsJune 30, 2026 / (unaudited)December 31, 2025
Current portion of operating lease liabilities114112
Short-term debt, net2,082
Total current liabilities12,15310,443
Deferred revenue, less current portion135120
Operating lease liabilities, less current portion822800
Long-term debt, net5,4351,491
Other long-term liabilities605220
Total liabilities19,15013,074

Item 1. Financial Statements

FAQ

What is ServiceNow's contract liabilities?
ServiceNow (NOW) reported contract liabilities of $135M in Q2 2026.
How has ServiceNow's contract liabilities changed year-over-year?
ServiceNow's contract liabilities increased by 22.7% year-over-year, from $110M to $135M.
What is the long-term trend for ServiceNow's contract liabilities?
Over 5 years (2020 to 2025), ServiceNow's contract liabilities has grown at a 21.5% compound annual growth rate (CAGR), from $45.35M to $120M.
What does contract liabilities mean?
Revenue collected or billed in advance of performance — deferred revenue under ASC 606 terminology, representing future revenue obligations.

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