Revenue
Revenue Recognized from Contract Liability
ServiceNow Revenue Recognized from Contract Liability increased by 7.1% to $3.00B in Q3 2025 compared to the prior quarter. Year-over-year, this metric grew by 20.0%, from $2.50B to $3.00B. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementIncome Statement
SectionRevenue
CategoryEfficiency
SignalHigher is better
VolatilityStable
First reportedQ1 2023
Last reportedQ3 2025
How to read this metric
High levels indicate successful fulfillment of long-term contracts or subscription obligations.
Detailed definition
The portion of revenue recognized during the period that was previously recorded as a contract liability. This demonstra...
Peer comparison
Standardized as 'Revenue recognized from contract liability balance' under ASC 606.
Metric ID:
is_tmusz_contract_liability_revenue_recognizedHistorical Data
14 periods
| Q2 '21 | Q3 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q2 '23 | Q3 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $1.20B | $1.30B | $1.40B | $1.50B | $1.60B | $1.90B | $2.00B | $2.20B | $2.40B | $2.50B | -$12.80B | $2.60B | $2.80B | $3.00B |
| QoQ Change | — | +8.3% | +7.7% | +7.1% | +6.7% | +18.8% | +5.3% | +10.0% | +9.1% | +4.2% | -612.0% | +120.3% | +7.7% | +7.1% |
| YoY Change | — | — | — | +25.0% | +23.1% | +26.7% | +25.0% | — | +26.3% | +25.0% | — | +18.2% | +16.7% | +20.0% |
Range-$12.80B – $3.00B
CAGR+32.6%
Avg YoY Growth+22.9%
Median YoY Growth+25.0%
Current Streak3 quarters growth
Revenue Recognized from Contract Liability at Other Companies
Frequently Asked Questions
- What is ServiceNow's revenue recognized from contract liability?
- ServiceNow (NOW) reported revenue recognized from contract liability of $3.00B in Q3 2025.
- How has ServiceNow's revenue recognized from contract liability changed year-over-year?
- ServiceNow's revenue recognized from contract liability increased by 20.0% year-over-year, from $2.50B to $3.00B.
- What does revenue recognized from contract liability mean?
- Revenue earned this period that was paid for by customers in a prior period.