Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

ServiceNow Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	204)	68)	126)	274)	89)
Accrued payroll	827)	700)	650)	490)	444)
Taxes payable	195)	162)	123)	109)	101)
Other employee-related liabilities	220)	196)	167)	150)	121)
Other	571)	311)	425)	226)	184)
Accrued expenses and other current liabilities	1,813)	1,369)	1,365)	975)	850)
Current portion of deferred revenue	8,314)	6,819)	5,785)	4,660)	3,836)
Current portion of operating lease liabilities	112)	102)	89)	96)	82)
Current debt, net	—)	—)	—)	—)	92)
Current liabilities	10,443)	8,358)	7,365)	6,005)	4,949)
Deferred revenue, less current portion	120)	95)	81)	70)	63)
Operating lease liabilities, less current portion	800)	687)	707)	650)	556)
Long-term debt, net, less current portion	1,491)	1,489)	1,488)	1,486)	1,484)
Other long-term liabilities	220)	145)	118)	56)	51)
Long-term liabilities	2,631)	2,416)	2,394)	2,262)	2,154)
Total liabilities	13,074)	10,774)	9,759)	8,267)	7,103)
Preferred stock, $0.001 par value; no shares issued or outstanding	—)	—)	—)	—)	—)
Common stock, $0.001 par value	1)	—)	—)	—)	—)
Treasury stock, at cost	(3,045)	(1,219)	(535)	—)	—)
Additional paid-in capital	10,747)	7,402)	6,131)	4,796)	3,665)
Accumulated other comprehensive income (loss)	19)	(68)	(37)	(102)	34)
Retained earnings (accumulated deficit)	5,242)	3,494)	2,069)	338)	(4)
Stockholders’ equity	12,964)	9,609)	7,628)	5,032)	3,695)
Total liabilities and stockholders’ equity	26,038)	20,383)	17,387)	13,299)	10,798)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the liabilities and stockholders’ equity of the company demonstrate a consistent growth trend from 2021 through 2025. Total liabilities increased significantly over the period, while stockholders’ equity also experienced substantial growth, contributing to a considerable expansion in total liabilities and equity.

Current Liabilities: Current liabilities exhibited a marked increase, rising from US$4,949 million in 2021 to US$10,443 million in 2025. A primary driver of this growth was the substantial increase in the current portion of deferred revenue, which more than doubled over the five-year period, moving from US$3,836 million to US$8,314 million. Accrued expenses and other current liabilities also increased, though at a slower pace. Accounts payable showed volatility, decreasing significantly in 2023 and 2024 before rising again in 2025. Current debt, net, was only reported for 2021.
Long-Term Liabilities: Long-term liabilities also increased, but at a more moderate rate than current liabilities, growing from US$2,154 million in 2021 to US$2,631 million in 2025. Long-term debt, net, remained relatively stable throughout the period, with only minor fluctuations. Operating lease liabilities, less current portion, showed a steady increase. Other long-term liabilities experienced a more substantial increase, particularly between 2022 and 2025.
Stockholders’ Equity: Stockholders’ equity demonstrated significant growth, increasing from US$3,695 million in 2021 to US$12,964 million in 2025. This growth was largely attributable to increases in additional paid-in capital and retained earnings. Additional paid-in capital more than tripled during the period. Retained earnings transitioned from a small accumulated deficit in 2021 to a substantial positive balance in 2025. Treasury stock shows a growing negative balance, indicating share repurchases. Common stock remained minimal until 2025, when it reached US$1 million.
Total Liabilities and Stockholders’ Equity: The combined effect of increasing liabilities and stockholders’ equity resulted in a substantial increase in total liabilities and stockholders’ equity, rising from US$10,798 million in 2021 to US$26,038 million in 2025. This represents a significant expansion of the company’s financial base over the five-year period.

The company’s reliance on deferred revenue as a component of current liabilities is notable and increased substantially. The consistent growth in stockholders’ equity, driven by both capital contributions and retained earnings, suggests a strengthening financial position. The increasing use of treasury stock indicates active capital management through share repurchases.

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ServiceNow Inc. (NYSE:NOW)

Balance Sheet: Liabilities and Stockholders’ Equity