Stock Analysis on Net
Stock Analysis on Net

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, 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
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: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

Revenue Trends
The total revenues demonstrated consistent growth over the periods analyzed, increasing from $1,046 million in the first quarter of 2020 to $3,215 million by the first quarter of 2025. Subscription revenue is the primary driver of this growth, rising steadily from $995 million to $3,113 million. In contrast, revenue from professional services and other categories showed less volatility, increasing moderately from $52 million to $102 million.
Cost of Revenues and Gross Profit
The cost of revenues also increased over time, from approximately $223 million to $724 million, corresponding to increased sales volumes and scale. Despite this, gross profit rose notably, from $823 million to $2,491 million, indicating improving profitability at the gross level. This reflects effective cost management relative to revenue growth, particularly in subscription services.
Operating Expenses
Operating expenses exhibited a rising trend, growing from $774 million to $2,133 million. Sales and marketing expenses dominated this category and maintained a substantial portion of costs, increasing from $441 million to $1,128 million. Research and development expenditures also grew steadily, from $227 million to $734 million, reflecting ongoing investments in innovation. General and administrative expenses increased somewhat less aggressively but still showed an upward trajectory, moving from $106 million to $271 million.
Profitability Measures
Income from operations showed a generally positive trend with frequent fluctuations. It started at $49 million and rose to $358 million by the end of the period, with some quarters exhibiting lower operating income due to seasonal or other factors. Interest income trended positively, increasing markedly from a negative position (-$9 million) to a positive $116 million, contributing to overall profitability. Other income or expense items were relatively minor and variable.
Income Before Taxes and Net Income
Income before income taxes rose over the period, increasing from $48 million to $471 million, mirroring the growth in operating income and non-operating income. The (provision for) benefit from income taxes was more variable and impacted net income figures significantly; most notably, an extraordinary tax benefit of $870 million appeared in one quarter, substantially increasing net income. Excluding this anomaly, net income generally increased from $48 million to $385 million, reflecting overall enhanced profitability aligned with revenue and operating income growth.
Summary of Financial Health
The company showed a strong pattern of revenue growth, particularly through subscription services, with gross profits rising in tandem. Operating expenses increased but were managed relative to revenue. Profitability improved over time, though subject to episodic fluctuations. Interest income and tax adjustments influenced net income variability. Overall, the trends suggest a growing and increasingly profitable business model with sustained investment in core operational areas such as marketing and research and development.