Stock Analysis on Net
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ServiceNow Inc. (NYSE:NOW)

$24.99

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

Microsoft Excel
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
Professional services and other
Revenues
Subscription
Professional services and other
Cost of revenues
Gross profit
Sales and marketing
Research and development
General and administrative
Operating expenses
Income from operations
Interest income
Other income (expense), net
Income before income taxes
(Provision for) benefit from income taxes
Net income

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

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.