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.

ServiceNow Inc., consolidated income statement (quarterly data)

US$ in millions

3 months ended:	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	3,877)	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	110)	99)	102)	108)	102)	83)	91)	82)	85)	80)	72)	72)	75)	72)	80)	89)	94)	91)	92)	85)	79)	67)
Revenues	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	(1,030)	(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	(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	(1,169)	(940)	(834)	(774)	(724)	(651)	(631)	(584)	(552)	(520)	(516)	(496)	(471)	(438)	(415)	(400)	(389)	(369)	(375)	(350)	(329)	(299)
Gross profit	2,818)	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	(1,372)	(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	(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	(369)	(288)	(368)	(255)	(271)	(229)	(257)	(225)	(232)	(222)	(242)	(213)	(209)	(199)	(194)	(187)	(175)	(179)	(181)	(151)	(139)	(126)
Operating expenses	(2,656)	(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	162)	503)	443)	572)	358)	451)	374)	418)	240)	332)	270)	231)	117)	144)	155)	91)	22)	87)	35)	74)	51)	97)
Interest income	70)	88)	105)	115)	116)	115)	106)	108)	104)	101)	86)	82)	74)	60)	38)	26)	12)	6)	(7)	(7)	(7)	(7)
Other income (expense), net	206)	82)	(7)	7)	(3)	(11)	(17)	(10)	(10)	(8)	(9)	(14)	(17)	(16)	(10)	(15)	(5)	(8)	4)	1)	6)	9)
Income before income taxes	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	(140)	(204)	(140)	(192)	(86)	(95)	(79)	(84)	(72)	(78)	(52)	(57)	870)	(38)	(33)	(22)	(9)	(10)	(6)	(5)	9)	(17)
Net income	298)	469)	401)	502)	385)	460)	384)	432)	262)	347)	295)	242)	1,044)	150)	150)	80)	20)	75)	26)	63)	59)	82)

Revenue exhibits a consistent and strong upward trajectory, growing from 1,360 million USD in March 2021 to 3,987 million USD by June 2026. This growth is almost exclusively driven by subscription services, which increased from 1,293 million USD to 3,877 million USD over the same period. In contrast, professional services and other revenues remained relatively stagnant, fluctuating within a narrow range between 67 million USD and 110 million USD, indicating a strategic reliance on scalable subscription-based income.

Gross Profitability and Cost Trends: Gross profit increased from 1,061 million USD in March 2021 to 2,818 million USD in June 2026. However, the cost of revenues has accelerated at a faster rate than revenue growth in the most recent periods. While the cost of revenues represented approximately 22% of total revenue in early 2021, it rose to approximately 29% by June 2026, reflecting a compression in gross margins toward the end of the analyzed period.
Operating Expense Analysis: Operating expenses have scaled significantly to support business expansion. Sales and marketing expenses grew from 524 million USD to 1,372 million USD, while research and development expenditures nearly tripled, rising from 314 million USD to 915 million USD. General and administrative expenses also saw a marked increase, ending at 369 million USD in June 2026. A sharp spike in total operating expenses is observed in the final quarter, reaching 2,656 million USD.
Operating and Net Income Patterns: Income from operations remained positive throughout the period but displayed significant volatility. After a general upward trend that peaked at 572 million USD in September 2025, operating income declined sharply to 162 million USD by June 2026, primarily due to the aforementioned surge in operating expenses. Net income trends are similarly volatile; a significant anomaly occurred in June 2023, where net income spiked to 1,044 million USD due to a substantial income tax benefit of 870 million USD. Excluding this outlier, net income shows a gradual increase from 82 million USD in March 2021 to 298 million USD in June 2026.
Non-Operating Items and Interest Income: A notable positive trend is observed in interest income, which transitioned from a net cost of 7 million USD in early 2021 to consistent gains, peaking at 116 million USD in June 2024. This suggests a substantial increase in the company's cash reserves or short-term investments over the five-year span. Other income and expenses remained relatively immaterial until a significant positive swing was recorded in the first half of 2026, with 206 million USD reported in June 2026.

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ServiceNow Inc. (NYSE:NOW)

Income StatementQuarterly Data

Income Statement
Quarterly Data