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Increase (decrease) in contract liabilities and current deferred income

ServiceNow Increase (decrease) in contract liabilities and current deferred income decreased by 114.7% to -$278M in Q1 2026 compared to the prior quarter. Year-over-year, this metric declined by 87.8%, from -$148M to -$278M. Over 4 years (FY 2021 to FY 2025), Increase (decrease) in contract liabilities and current deferred income shows an upward trend with a 4.3% CAGR. This decline may warrant attention — for this metric, higher values are generally preferred.

Analysis

StatementIncome Statement
SectionOther
CategoryGrowth
SignalHigher is better
VolatilityModerate
First reportedQ1 2016
Last reportedQ1 2026Apr 23, 2026

How to read this metric

An increase indicates strong sales momentum and future revenue visibility.

Detailed definition

The change in deferred revenue or contract liabilities, representing cash received from customers for services or produc...

Peer comparison

Critical metric for SaaS and subscription companies to assess bookings health.

Metric ID: other_increase_decrease_in_contract_with_customer_liability

Historical Data

20 periods
 Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23Q4 '23Q1 '24Q2 '24Q3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26
Value$10M$0$913M$21M-$65M-$112M$1.06B$40M-$129M-$128M$1.3B-$10M-$82M-$263M$1.53B-$148M-$116M-$449M$1.89B-$278M
QoQ Change-100.0%-97.7%-409.5%-72.3%>999%-96.2%-422.5%+0.8%>999%-100.8%-720.0%-220.7%+683.3%-109.6%+21.6%-287.1%+521.4%-114.7%
YoY Change-750.0%+16.1%+90.5%-98.5%-14.3%+22.8%-125.0%+36.4%-105.5%+17.8%<-999%-41.5%-70.7%+23.3%-87.8%
Range-$449M$1.89B
CAGR+101.4%
Avg YoY Growth-164.4%
Median YoY Growth-41.5%

Frequently Asked Questions

What is ServiceNow's increase (decrease) in contract liabilities and current deferred income?
ServiceNow (NOW) reported increase (decrease) in contract liabilities and current deferred income of -$278M in Q1 2026.
How has ServiceNow's increase (decrease) in contract liabilities and current deferred income changed year-over-year?
ServiceNow's increase (decrease) in contract liabilities and current deferred income decreased by 87.8% year-over-year, from -$148M to -$278M.
What is the long-term trend for ServiceNow's increase (decrease) in contract liabilities and current deferred income?
Over 4 years (2021 to 2025), ServiceNow's increase (decrease) in contract liabilities and current deferred income has grown at a 4.3% compound annual growth rate (CAGR), from $998M to $1.18B.
What does increase (decrease) in contract liabilities and current deferred income mean?
The change in cash received from customers for work not yet completed.