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ServiceNow NOW Subscription — Total cost of revenues

Other product segments

Professional services and other
$120M+33.3%

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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$98.02B-33.5%
Enterprise value$96.25B-33.6%
P/E55.8×-40.0×
P/S-5.8×

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:CostOfRevenue.

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 subscription — total cost of revenues?
ServiceNow (NOW) reported subscription — total cost of revenues of $820M in Q1 2026.
How has ServiceNow's subscription — total cost of revenues changed year-over-year?
ServiceNow's subscription — total cost of revenues increased by 46.2% year-over-year, from $561M to $820M.
What is the long-term trend for ServiceNow's subscription — total cost of revenues?
Over 4 years (2021 to 2025), ServiceNow's subscription — total cost of revenues has grown at a 25.9% compound annual growth rate (CAGR), from $1.02B to $2.57B.
What does subscription — total cost of revenues mean?
The direct costs incurred to provide and maintain the subscription software services for customers.
How do you interpret subscription — total cost of revenues?
A decrease relative to revenue indicates improved operational efficiency and economies of scale, while an increase may suggest rising infrastructure or support costs.
How does subscription — total cost of revenues compare across companies?
Comparable to Cost of Subscription Revenue or Cost of Goods Sold (COGS) for SaaS companies.