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ServiceNow NOW Equity awards assumed in business combinations

Equity awards assumed in business combinations at other companies

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CBA
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$333.82K

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$131.76B-25.9%
Enterprise value$137.69B-21.5%
P/E78.9×-28.1×
P/S8.9×-5.8×

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 now:EquityAwardsAssumedInBusinessCombinations.

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, 2026 / Common Stock / SharesThree Months Ended June 30, 2026 / Common Stock / AmountThree Months Ended June 30, 2026 / Treasury Stock / SharesThree Months Ended June 30, 2026 / Treasury Stock / AmountThree Months Ended June 30, 2026 / Additional Paid-in CapitalThree Months Ended June 30, 2026 / Retained EarningsThree Months Ended June 30, 2026 / Accumulated Other Comprehensive Income (Loss)Three Months Ended June 30, 2026 / Total Stockholders’EquityThree Months Ended June 30, 2025 / Common Stock / SharesThree Months Ended June 30, 2025 / Common Stock / AmountThree Months Ended June 30, 2025 / Treasury Stock / SharesThree Months Ended June 30, 2025 / Treasury Stock / AmountThree Months Ended June 30, 2025 / Additional Paid-in CapitalThree Months Ended June 30, 2025 / Retained EarningsThree Months Ended June 30, 2025 / Accumulated Other Comprehensive LossThree Months Ended June 30, 2025 / Total Stockholders’Equity
Common stock repurchased(1,905)(361)(361)
Taxes paid related to net share settlement of equity awards(117)(117)(185)(185)
Stock-based compensation652652499499
Issuance of common stock for business combinations2,343434434
Equity awards assumed in business combinations55
Other comprehensive (loss) income, net of tax(51)(51)2121
Net income298298385385
Balance at end of the period1,072,455$1(38,593)$(5,371)$11,921$6,009$(44)$12,5161,049,338$1(11,743)$(1,871)$8,512$4,339$(49)$10,932

Item 1. Financial Statements

FAQ

What is ServiceNow's equity awards assumed in business combinations?
ServiceNow (NOW) reported equity awards assumed in business combinations of $5M in Q2 2026.
How has ServiceNow's equity awards assumed in business combinations changed year-over-year?
ServiceNow's equity awards assumed in business combinations increased by 400.0% year-over-year, from $1M to $5M.
What does equity awards assumed in business combinations mean?
The fair value of equity-based awards granted to employees of an acquired entity that the company assumes as part of the acquisition agreement. This represents a non-cash cost of integrating acquired talent into the company's compensation structure. It is a key component of the total purchase price allocation for business combinations.

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