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ServiceNow NOW Amortization of deferred commissions

Amortization of deferred commissions at other companies

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PegasystemsPEGA
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HealthStreamHSTM

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$92.32B-54.1%
Enterprise value$90.55B-54.4%
P/E52.6×-78.3×
P/S6.6×-10.9×

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:AmortizationOfDeferredSalesCommissions.

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 amortization of deferred commissions?
ServiceNow (NOW) reported amortization of deferred commissions of $168M in Q1 2026.
How has ServiceNow's amortization of deferred commissions changed year-over-year?
ServiceNow's amortization of deferred commissions increased by 15.9% year-over-year, from $145M to $168M.
What is the long-term trend for ServiceNow's amortization of deferred commissions?
Over 4 years (2021 to 2025), ServiceNow's amortization of deferred commissions has grown at a 20.6% compound annual growth rate (CAGR), from $294M to $621M.
What does amortization of deferred commissions mean?
This represents the periodic expense recognized for sales commissions that were initially capitalized as assets. It reflects the systematic allocation of commission costs over the expected period of benefit from the associated customer contracts.