Operating Expenses

Stock-Based Compensation Expense (Pre-tax)

ServiceNow Stock-Based Compensation Expense (Pre-tax) remained flat by 0.0% to $488.75M in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 12.0%, from $436.50M to $488.75M. Over 2 years (FY 2023 to FY 2025), Stock-Based Compensation Expense (Pre-tax) shows an upward trend with a 10.4% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.

Analysis

StatementIncome Statement
SectionOperating Expenses
CategoryEfficiency
SignalLower is better
VolatilityStable
First reportedQ1 2023
Last reportedQ4 2025

How to read this metric

An increase in this expense reduces reported operating income but reflects the company's reliance on equity-based incentives.

Detailed definition

The total pre-tax expense recognized in the income statement related to share-based payment arrangements for employees a...

Peer comparison

Universal metric for public companies; often adjusted for in non-GAAP earnings presentations.

Metric ID: is_cat_stock_based_compensation_expense_pretax

Historical Data

3 years
 FY'23FY'24FY'25
Value$1.60B$1.75B$1.96B
YoY Change+8.9%+12.0%
Range$1.60B$1.96B
CAGR+10.4%
Avg YoY Growth+10.4%
Median YoY Growth+10.4%
Current Streak2+ years growth

Product Breakdown

View all
SegmentQ1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25
License and Service$58.00M$62.00M$64.00M$66.00M$68.00M$76.00M$78.00M$78.00M
Professional services and other$11.00M$11.00M$11.00M$11.00M
Total$436.50M$436.50M$436.50M$436.50M$488.75M$488.75M$488.75M$488.75M

License and Service, Professional services and other were previously reported and have since been discontinued or reclassified. Only currently active segments are shown in the chart.

Frequently Asked Questions

What is ServiceNow's stock-based compensation expense (pre-tax)?
ServiceNow (NOW) reported stock-based compensation expense (pre-tax) of $488.75M in Q4 2025.
How has ServiceNow's stock-based compensation expense (pre-tax) changed year-over-year?
ServiceNow's stock-based compensation expense (pre-tax) increased by 12.0% year-over-year, from $436.50M to $488.75M.
What is the long-term trend for ServiceNow's stock-based compensation expense (pre-tax)?
Over 2 years (2023 to 2025), ServiceNow's stock-based compensation expense (pre-tax) has grown at a 10.4% compound annual growth rate (CAGR), from $1.60B to $1.96B.
What does stock-based compensation expense (pre-tax) mean?
The total pre-tax cost of stock-based compensation recognized as an operating expense.