Name: ServiceNow Inc. (NYSE:NOW) | Income Statement (Quarterly)
Creator: Stock Analysis on Net

Income Statement
Quarterly Data

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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ServiceNow Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Subscription	3,988)	3,877)	3,671)	3,466)	3,299)	3,113)	3,005)	2,866)	2,715)	2,542)	2,523)	2,365)	2,216)	2,075)	2,024)	1,860)	1,742)	1,658)	1,631)	1,523)	1,427)	1,330)	1,293)
Professional services and other	118)	110)	99)	102)	108)	102)	83)	91)	82)	85)	80)	72)	72)	75)	72)	80)	89)	94)	91)	92)	85)	79)	67)
Revenues	4,106)	3,987)	3,770)	3,568)	3,407)	3,215)	3,088)	2,957)	2,797)	2,627)	2,603)	2,437)	2,288)	2,150)	2,096)	1,940)	1,831)	1,752)	1,722)	1,615)	1,512)	1,409)	1,360)
Subscription	(1,054)	(1,030)	(820)	(717)	(666)	(625)	(561)	(536)	(496)	(469)	(441)	(443)	(420)	(389)	(354)	(324)	(301)	(287)	(275)	(282)	(264)	(248)	(228)
Professional services and other	(157)	(139)	(120)	(117)	(108)	(99)	(90)	(95)	(88)	(83)	(79)	(73)	(76)	(82)	(84)	(91)	(99)	(102)	(94)	(93)	(86)	(81)	(71)
Cost of revenues	(1,211)	(1,169)	(940)	(834)	(774)	(724)	(651)	(631)	(584)	(552)	(520)	(516)	(496)	(471)	(438)	(415)	(400)	(389)	(369)	(375)	(350)	(329)	(299)
Gross profit	2,895)	2,818)	2,830)	2,734)	2,633)	2,491)	2,437)	2,326)	2,213)	2,075)	2,083)	1,921)	1,792)	1,679)	1,658)	1,525)	1,431)	1,363)	1,353)	1,240)	1,162)	1,080)	1,061)
Sales and marketing	(1,271)	(1,372)	(1,216)	(1,150)	(1,056)	(1,128)	(1,054)	(1,027)	(944)	(960)	(923)	(847)	(799)	(832)	(823)	(722)	(697)	(722)	(673)	(632)	(579)	(557)	(524)
Research and development	(956)	(915)	(823)	(773)	(750)	(734)	(703)	(668)	(626)	(643)	(606)	(562)	(549)	(521)	(492)	(454)	(456)	(444)	(414)	(392)	(358)	(333)	(314)
General and administrative	(283)	(369)	(288)	(368)	(255)	(271)	(229)	(257)	(225)	(232)	(222)	(242)	(213)	(209)	(199)	(194)	(187)	(175)	(179)	(181)	(151)	(139)	(126)
Operating expenses	(2,510)	(2,656)	(2,327)	(2,291)	(2,061)	(2,133)	(1,986)	(1,952)	(1,795)	(1,835)	(1,751)	(1,651)	(1,561)	(1,562)	(1,514)	(1,370)	(1,340)	(1,341)	(1,266)	(1,205)	(1,088)	(1,029)	(964)
Income from operations	385)	162)	503)	443)	572)	358)	451)	374)	418)	240)	332)	270)	231)	117)	144)	155)	91)	22)	87)	35)	74)	51)	97)
Interest income	69)	70)	88)	105)	115)	116)	115)	106)	108)	104)	101)	86)	82)	74)	60)	38)	26)	12)	6)	(7)	(7)	(7)	(7)
Interest expense	(81)	—)	—)	(17)	(6)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Other income (expense), net	(3)	206)	82)	10)	13)	(3)	(11)	(17)	(10)	(10)	(8)	(9)	(14)	(17)	(16)	(10)	(15)	(5)	(8)	4)	1)	6)	9)
Income before income taxes	370)	438)	673)	541)	694)	471)	555)	463)	516)	334)	425)	347)	299)	174)	188)	183)	102)	29)	85)	32)	68)	50)	99)
(Provision for) benefit from income taxes	(93)	(140)	(204)	(140)	(192)	(86)	(95)	(79)	(84)	(72)	(78)	(52)	(57)	870)	(38)	(33)	(22)	(9)	(10)	(6)	(5)	9)	(17)
Net income	277)	298)	469)	401)	502)	385)	460)	384)	432)	262)	347)	295)	242)	1,044)	150)	150)	80)	20)	75)	26)	63)	59)	82)

Revenue demonstrates a consistent and strong upward trajectory, driven almost exclusively by the subscription business. From March 2021 to September 2026, total revenues increased from 1,360 million USD to 4,106 million USD. The subscription component grew from 1,293 million USD to 3,988 million USD, while professional services and other revenues remained a minor contributor, fluctuating between 67 million USD and 118 million USD over the same period.

Gross Profitability and Cost Management: Gross profit grew steadily from 1,061 million USD in March 2021 to 2,895 million USD in September 2026. While the cost of revenues increased over time, the growth rate of these costs generally remained below the revenue growth rate until 2026, where a more pronounced increase in subscription-related costs was observed, particularly between March and September 2026, rising from 820 million USD to 1,054 million USD.
Operating Expense Trends: Operating expenses scaled in tandem with revenue growth. Sales and marketing expenses grew from 524 million USD to 1,271 million USD, reflecting an aggressive acquisition strategy. Research and development expenditures showed a consistent climb from 314 million USD to 956 million USD, indicating sustained investment in product innovation. General and administrative expenses exhibited more volatility, particularly in the final year of the data, with a peak of 369 million USD in June 2026 before decreasing to 283 million USD in September 2026.
Operating Income and Efficiency: Income from operations remained positive throughout the period but experienced significant fluctuations. After a period of stability and growth through 2024 and 2025, a sharp contraction occurred in June 2026, where operating income dropped to 162 million USD, before recovering to 385 million USD by September 2026.
Net Income and Non-Operating Items: Net income shows a general long-term increase, though it was heavily influenced by non-operational factors. A significant anomaly is noted in June 2023, where net income spiked to 1,044 million USD, primarily due to a one-time tax benefit of 870 million USD. Interest income saw a substantial increase from 2022 onward, peaking at 116 million USD in June 2025. Conversely, interest expenses began appearing in late 2025 and 2026, reaching 81 million USD by September 2026, which impacted the final net income figures.

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ServiceNow Inc. (NYSE:NOW)

Income StatementQuarterly Data

Income Statement
Quarterly Data