ServiceNow: how the business works

• Technology products

  Help IT departments handle requests, manage infrastructure and costs, and find and fix security threats. They include IT Service Management and IT Operations Management.

• CRM and Industry products

  Connect customer service with field service, sales quoting and order management, with workflows made for specific industries.

• Core Business products

  Support HR, legal, finance, supply chain and facilities work, so staff can get answers and teams can track requests.

• Creator and Other products

  Low-code tools that let organizations build their own workflows, plus data privacy and security tools.

• Now Assist

  The AI tools built into the ServiceNow AI Platform. Customers can use ServiceNow's language models or connect other models.

• Security from acquisitions

  Armis, bought in April 2026, covers cyber exposure and physical device security. Veza, bought in March 2026, covers identity security and access.

• Professional services and other

  Help with setting up the software, plus training: $395 million, or 3.0% of FY2025 revenue.

1. 1Customers paid ServiceNow $13.3 billion in FY2025; $12.9 billion of it was subscriptions.
2. 2Delivering the software and services cost $3.0 billion.
3. 3Sales and marketing took $4.4 billion, research and development $3.0 billion, and general and administrative $1.1 billion.
4. 4That left $1.8 billion of operating income. Interest income added $451 million.
5. 5After $513 million of income tax and $14 million of other expense, $1.7 billion was left as net income.

• Third-party cloud capacity

  Commitments to cloud providers were $432 million for FY2027, rising to $2.8 billion for FY2030, at Sep 30, 2026. ServiceNow also committed about $1.6 billion to IT equipment.

• People

  29,187 full-time employees at Dec 31, 2025: 14,601 in the US and 14,586 elsewhere. ServiceNow took $167 million of severance costs in the first nine months of FY2026.

• Research and development

  $3.0 billion in FY2025, up from $1.4 billion in FY2021.

• Partners

  ServiceNow names AWS, Google, Microsoft and NVIDIA as technology partners. Integrators such as Accenture, Cognizant, Deloitte, EY, Infosys and KPMG offer its software to their customers.

• Microsoft

  Named in ServiceNow's FY2025 10-K as an enterprise software vendor it competes with. The same filing lists Microsoft as a technology partner.

• Salesforce

  Named in ServiceNow's FY2025 10-K as an enterprise software vendor it competes with. ServiceNow's CRM and Industry products cover customer service and sales.

• SAP

  Named in ServiceNow's FY2025 10-K as an enterprise software vendor it competes with. ServiceNow's CEO ran SAP before joining in 2019.

• Oracle

  Named in ServiceNow's FY2025 10-K as an enterprise software vendor it competes with.

• Workday

  Named in ServiceNow's FY2025 10-K as an enterprise software vendor it competes with. ServiceNow's Core Business products cover HR and finance work.

• Larger contracts

  Working

  680 customers over $5M

  Customers with over $5 million of annual contract value rose from 553 to 680 in the year to Sep 30, 2026. Revenue under contract rose 22% to $29.7 billion.

  Status: Working, on track against what the company said.

• AI products

  Early

  $1.7B 2026 AI contract target

  ServiceNow's CFO said on Oct 28, 2026 that the year-end target for AI annual contract value went "from $1 billion at the start of the year to $1.7 billion now". No AI revenue figure is disclosed.

  Status: Early, too early to judge.

• Paying by usage

  Early

  Over 13 times, as stated

  ServiceNow said on Oct 28, 2026 that year-to-date use of AI agents in production rose more than 13 times. Some AI and data products charge for use beyond included credits.

  Status: Early, too early to judge.

• Security acquisitions

  New

  $7.6B Armis, $1.2B Veza

  Veza closed on Mar 2, 2026 and Armis on Apr 20, 2026. The filings give no revenue for either and call pro forma results not material.

  Status: New, recently announced.

• US federal demand

  Mixed

  12% of Q3 revenue via one partner

  ServiceNow said on Jul 22, 2026 that US Federal demand moved some on-premise revenue from Q3 into Q2 FY2026. That revenue is booked upfront, so quarters can swing.

  Status: Mixed, partly on track.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

• Official (GAAP): Operating income, FY2025

  $1.8B

  Company's own measure: Non-GAAP operating income, FY2025

  $4.1B

  ServiceNow leaves out $1,955 million of stock-based compensation, $120 million of amortization of purchased assets, $109 million of acquisition costs, and $141 million of impairment, severance and contract termination.

• Official (GAAP): Net income, FY2025

  $1.7B

  Company's own measure: Non-GAAP net income, FY2025

  $3.7B

  Similar exclusions, after their tax effect. This is the figure as first reported, before the 2026 definition change noted below.

• Official (GAAP): Diluted EPS, FY2025

  $1.67

  Company's own measure: Non-GAAP diluted EPS, FY2025

  $3.51

  Same exclusions, per diluted share.

• Official (GAAP): Operating income, Q3 FY2026

  $385M

  Company's own measure: Non-GAAP operating income, Q3 FY2026

  $1.3B

  ServiceNow leaves out $633 million of stock-based compensation, $198 million of amortization of purchased assets, $87 million of severance and $35 million of acquisition costs. It states margins of 32.5% non-GAAP and 9.5% GAAP.

• Official (GAAP): Net income, Q3 FY2026

  $277M

  Company's own measure: Non-GAAP net income, Q3 FY2026

  $1.0B

  From 2026 this measure also leaves out gains and losses on strategic investments, and ServiceNow restated earlier periods. Q3 FY2025 went from $1,010 million to $992 million.

• Official (GAAP): Diluted EPS, Q3 FY2026

  $0.27

  Company's own measure: Non-GAAP diluted EPS, Q3 FY2026

  $1.00

  Same exclusions, per diluted share.

• Official (GAAP): Cash from operations, first nine months of FY2026

  $3.1B

  Company's own measure: Company free cash flow, first nine months of FY2026

  $3.1B

  ServiceNow adds back cash paid for legal settlements and acquisition costs, then deducts purchases of property and equipment. Cash from operations minus those purchases alone was $2,750 million.

• Official (GAAP): Remaining performance obligations, Sep 30, 2026

  $29.7B

  Company's own measure: Current remaining performance obligations, Sep 30, 2026

  $13.7B

  The part of contract revenue ServiceNow expects to book in the next 12 months. It is inside the larger figure and rose 20.5% as stated in the Q3 FY2026 earnings release.

• Official (GAAP): Subscription revenue, Q3 FY2026

  $4.0B

  Company's own measure: Customers with over $5 million of annual contract value, Sep 30, 2026

  680 customers

  ServiceNow counts annual contract value, the yearly value of a customer's contracts. The count was 553 a year earlier.

• Official (GAAP): Revenue growth, Q3 FY2026

  20.5%

  Company's own measure: Renewal rate, Q3 FY2026

  98%

  100% minus annual contract value lost to customers who left in the period, as a share of value up for renewal. It leaves out changes in price or users. It was 97% in Q3 FY2025.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

• Net debt = debt of $7,524 million − cash of $2,393 million − marketable securities of $2,214 million and $2,354 million (Cityfort calculation from the Q3 FY2026 earnings release). Net cash at Dec 31, 2025 is a Cityfort calculation from the FY2025 10-K.
• Debt is $5.5 billion of senior notes and $2.1 billion of commercial paper, short-term loans at a 4.05% average rate, at principal value. A $3 billion credit line is undrawn.
• ServiceNow repaid the April term loan that helped fund Armis in May 2026, primarily through $4.0 billion of notes issued on May 15.
• Interest cover of 6.9 = operating income of $1,050 million ÷ interest expense of $153 million for the first nine months of FY2026; it was 4.8 for Q3 FY2026 alone (Cityfort calculation from the Q3 FY2026 earnings release).
• Strategic investments of $2.05 billion and operating leases of $891 million are not counted here.
• Goodwill rose from $1.3 billion at Dec 31, 2024 to $10.0 billion at Sep 30, 2026, or 0.76 times shareholders' equity (Cityfort calculation from the Q3 FY2026 earnings release).
• This page cites no credit rating: no rating report was read.

Officers and directors (as a group), shares

0.3%

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Auditor

PricewaterhouseCoopers LLP, since 2011

Auditor changes

None in the period covered

Audit qualifications

None reported

Related-party dealings

The 2026 proxy reports a one-year $365,000 engagement of former director Jeff Miller at ServiceNow University. It also reports that executive Paul Fipps's daughter accepted a job paying over $120,000, set under the company's usual pay practices.

Credit rating

No public credit rating found

Share price

$108.81

Market value (market cap)

$112.9B

P/E

78.3×

Source: NOW historical daily prices, Nasdaq's table for an NYSE-listed share (close of Nov 4, 2026: $108.81); Form 10-Q, Q3 FY2026 (ended Sept 30, 2026); Earnings release, Q3 FY2026 (8-K Ex. 99.1) and 3 more