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ServiceNow NOW Subscription — Total cost of revenues

Other product segments

Professional services and other
$139M+40.4%

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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$121.19B-36.0%
Enterprise value$127.13B-32.1%
P/E72.6×-41.4×
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:CostOfRevenue.

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
Line itemThree Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Professional services and other110102209185
Total revenues3,9873,2157,7576,303
Cost of revenues(1):
Subscription1,0306251,8501,186
Professional services and other13999259189
Total cost of revenues1,1697242,1091,375
Gross profit2,8182,4915,6484,928
Operating expenses(1):

Item 1. Financial Statements

FAQ

What is ServiceNow's subscription — total cost of revenues?
ServiceNow (NOW) reported subscription — total cost of revenues of $1.03B in Q2 2026.
How has ServiceNow's subscription — total cost of revenues changed year-over-year?
ServiceNow's subscription — total cost of revenues increased by 64.8% year-over-year, from $625M to $1.03B.
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?
This metric captures the direct costs associated with delivering the subscription software services, including cloud infrastructure hosting, data center operations, and customer support personnel. It is a critical indicator of the scalability of the service delivery model. Monitoring this helps assess the efficiency of the company's cloud operations and infrastructure management.

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