Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
ServiceNow Inc., solvency ratios (quarterly data)
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).
A comprehensive analysis of the solvency ratios reveals a prolonged period of deleveraging from March 2022 through December 2025, followed by a significant and abrupt increase in leverage by June 2026. For the majority of the observed period, the company consistently reduced its reliance on debt relative to equity, capital, and assets, indicating a strengthening of the balance sheet and a reduction in long-term financial risk.
- Debt to Equity Ratios
- The debt to equity ratio exhibited a steady decline from 0.39 in March 2022 to a low of 0.12 by December 2025. When operating lease liabilities are included, the ratio followed an identical trajectory, decreasing from 0.55 to 0.19 over the same period. However, June 2026 marked a sharp reversal, with the debt to equity ratio spiking to 0.60, and the lease-inclusive ratio rising to 0.68, suggesting a substantial increase in borrowed funds or a significant reduction in equity.
- Debt to Capital Ratios
- Ratios measuring debt against total capital showed a consistent downward trend, with the primary ratio falling from 0.28 in March 2022 to 0.10 in December 2025. The ratio inclusive of operating lease liabilities mirrored this decline, moving from 0.36 to 0.16. Similar to the equity metrics, these ratios experienced a sharp increase in the final quarter, reaching 0.38 and 0.40 respectively, indicating a shift in the capital structure toward a higher proportion of debt.
- Debt to Asset Ratios
- The proportion of assets financed by debt decreased marginally but steadily from March 2022 through December 2025, with the debt to assets ratio moving from 0.14 to 0.06. The inclusive lease liability ratio declined from 0.20 to 0.09. This trend was interrupted in June 2026, where the ratios rose sharply to 0.24 and 0.27, reflecting a sudden increase in total liabilities relative to the asset base.
- Financial Leverage
- Financial leverage demonstrated a general downward trend with moderate volatility, starting at 2.75 in March 2022 and reaching a low of 1.93 in September 2025. While it remained relatively stable around the 2.0 mark for several quarters, it climbed to 2.53 by June 2026. This upward movement aligns with the spikes observed in all other solvency metrics, confirming an overall increase in the company's financial gearing at the end of the analyzed period.
The data indicates that between 2022 and 2025, the company aggressively improved its solvency position. The convergence of all ratios toward their lowest points by late 2025 suggests a period of high financial stability. The sudden escalation in all solvency metrics in June 2026 represents a significant departure from the prior four-year trend, signaling a major capital event or a strategic shift in financing.
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Debt Ratios
Debt to Equity
ServiceNow Inc., debt to equity calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Stockholders’ equity | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 0.60 | 0.13 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.21 | 0.21 | 0.27 | 0.30 | 0.33 | 0.35 | 0.39 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.04 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Adobe Inc. | 0.58 | 0.54 | 0.53 | 0.53 | 0.54 | 0.47 | 0.40 | 0.39 | 0.38 | 0.24 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.29 | 0.30 | 0.30 | ||||||
| AppLovin Corp. | 1.11 | 1.49 | 1.65 | 2.38 | 3.01 | 6.45 | 3.22 | 3.74 | 4.32 | 4.64 | 2.48 | 2.85 | 2.11 | 1.69 | 1.69 | 1.71 | 1.69 | 1.60 | ||||||
| Cadence Design Systems Inc. | 0.36 | 0.44 | 0.45 | 0.48 | 0.49 | 0.52 | 0.53 | 0.62 | 0.32 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.27 | 0.29 | 0.13 | 0.13 | ||||||
| CrowdStrike Holdings Inc. | 0.20 | 0.22 | 0.23 | 0.24 | 0.26 | 0.29 | 0.32 | 0.37 | 0.40 | 0.46 | 0.51 | 0.56 | 0.60 | 0.67 | 0.72 | 0.78 | 0.82 | 0.87 | ||||||
| Datadog Inc. | 0.23 | 0.25 | 0.26 | 0.29 | 0.31 | 0.55 | 0.59 | 0.28 | 0.31 | 0.34 | 0.37 | 0.41 | 0.45 | 0.49 | 0.52 | 0.57 | 0.61 | 0.66 | ||||||
| International Business Machines Corp. | 1.80 | 2.01 | 1.88 | 2.26 | 2.33 | 2.35 | 2.01 | 2.31 | 2.35 | 2.56 | 2.51 | 2.39 | 2.59 | 2.72 | 2.32 | 2.53 | 2.59 | 2.85 | ||||||
| Intuit Inc. | 0.32 | 0.32 | 0.30 | 0.32 | 0.35 | 0.34 | 0.33 | 0.32 | 0.35 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.42 | 0.40 | 0.43 | 0.21 | ||||||
| Microsoft Corp. | 0.10 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.19 | 0.26 | 0.31 | 0.32 | 0.23 | 0.25 | 0.26 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | ||||||
| Oracle Corp. | 3.61 | 3.78 | 4.53 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.11 | 0.19 | 0.26 | 0.42 | 0.90 | 1.14 | 2.99 | 5.05 | 7.24 | 17.51 | 10.89 | 31.19 | 7.08 | ||||||
| Salesforce Inc. | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.24 | 0.06 | ||||||
| Synopsys Inc. | 0.33 | 0.33 | 0.48 | 0.52 | 1.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Workday Inc. | 0.33 | 0.33 | 0.33 | 0.35 | 0.36 | 0.37 | 0.37 | 0.45 | 0.47 | 0.50 | 0.53 | 0.55 | 0.80 | 0.86 | 0.41 | 0.44 | 0.48 | 0.55 | ||||||
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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 7,517 ÷ 12,516 = 0.60
2 Click competitor name to see calculations.
The solvency profile of the organization exhibits two distinct phases: a prolonged period of deleveraging and equity accumulation, followed by a sharp increase in debt obligations in the first half of 2026.
- Long-term Solvency Trend (March 2022 – December 2025)
- A consistent downward trend in the debt-to-equity ratio is observed, declining from 0.39 in March 2022 to a minimum of 0.12 by December 2025. This improvement in solvency was primarily driven by a substantial and steady increase in stockholders' equity, which grew from 3,997 million USD to 12,964 million USD over this period. During this same timeframe, total debt remained remarkably stable, fluctuating minimally around the 1,485 million to 1,572 million USD range, thereby reducing the company's reliance on external borrowing relative to its equity base.
- Capital Structure Shift (March 2026 – June 2026)
- A significant shift in the capital structure occurred between March 31, 2026, and June 30, 2026. Total debt experienced a sharp increase, rising from 1,491 million USD to 7,517 million USD. Despite stockholders' equity remaining robust at 12,516 million USD, the magnitude of the new debt issuance resulted in the debt-to-equity ratio spiking to 0.60. This represents the highest leverage level recorded in the analyzed period, reversing several years of solvency improvement.
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Debt to Equity (including Operating Lease Liability)
ServiceNow Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Current portion of operating lease liabilities | 114) | 118) | 112) | 107) | 104) | 103) | 102) | 106) | 98) | 92) | 89) | 91) | 90) | 97) | 96) | 89) | 87) | 87) | ||||||
| Operating lease liabilities, less current portion | 822) | 822) | 800) | 804) | 815) | 806) | 687) | 650) | 669) | 693) | 707) | 682) | 635) | 655) | 650) | 551) | 572) | 548) | ||||||
| Total debt (including operating lease liability) | 8,453) | 2,431) | 2,403) | 2,402) | 2,409) | 2,399) | 2,278) | 2,245) | 2,255) | 2,273) | 2,284) | 2,260) | 2,212) | 2,238) | 2,232) | 2,125) | 2,144) | 2,207) | ||||||
| Stockholders’ equity | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.68 | 0.21 | 0.19 | 0.21 | 0.22 | 0.24 | 0.24 | 0.24 | 0.26 | 0.28 | 0.30 | 0.31 | 0.32 | 0.40 | 0.44 | 0.47 | 0.51 | 0.55 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.27 | 0.27 | 0.26 | 0.27 | 0.28 | 0.28 | 0.15 | 0.17 | 0.12 | 0.12 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.17 | ||||||
| Adobe Inc. | 0.61 | 0.58 | 0.57 | 0.56 | 0.57 | 0.50 | 0.43 | 0.42 | 0.41 | 0.26 | 0.25 | 0.26 | 0.28 | 0.29 | 0.33 | 0.32 | 0.33 | 0.34 | ||||||
| CrowdStrike Holdings Inc. | 0.22 | 0.23 | 0.24 | 0.26 | 0.28 | 0.31 | 0.34 | 0.39 | 0.43 | 0.49 | 0.54 | 0.59 | 0.63 | 0.70 | 0.76 | 0.82 | 0.86 | 0.92 | ||||||
| Datadog Inc. | 0.29 | 0.32 | 0.34 | 0.37 | 0.40 | 0.64 | 0.68 | 0.37 | 0.40 | 0.43 | 0.45 | 0.49 | 0.54 | 0.56 | 0.59 | 0.65 | 0.67 | 0.72 | ||||||
| International Business Machines Corp. | 1.89 | 2.12 | 1.98 | 2.39 | 2.46 | 2.49 | 2.14 | 2.46 | 2.49 | 2.70 | 2.66 | 2.54 | 2.72 | 2.85 | 2.46 | 2.68 | 2.75 | 3.02 | ||||||
| Intuit Inc. | 0.36 | 0.35 | 0.33 | 0.35 | 0.38 | 0.37 | 0.35 | 0.34 | 0.38 | 0.37 | 0.38 | 0.40 | 0.48 | 0.47 | 0.45 | 0.43 | 0.46 | 0.25 | ||||||
| Microsoft Corp. | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.25 | 0.32 | 0.37 | 0.39 | 0.29 | 0.31 | 0.33 | 0.35 | 0.37 | 0.38 | 0.40 | 0.42 | ||||||
| Oracle Corp. | 4.15 | 4.36 | 5.09 | 5.75 | 6.45 | 7.81 | 9.98 | 15.65 | 22.97 | 37.53 | 84.33 | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.05 | 0.06 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | ||||||
| Palo Alto Networks Inc. | 0.04 | 0.04 | 0.04 | 0.10 | 0.14 | 0.17 | 0.26 | 0.34 | 0.50 | 1.02 | 1.30 | 3.20 | 5.42 | 7.80 | 18.82 | 11.70 | 33.58 | 7.65 | ||||||
| Salesforce Inc. | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.30 | 0.14 | ||||||
| Synopsys Inc. | 0.36 | 0.36 | 0.50 | 0.55 | 1.08 | 0.07 | 0.08 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | ||||||
| Workday Inc. | 0.41 | 0.38 | 0.37 | 0.39 | 0.40 | 0.41 | 0.41 | 0.49 | 0.52 | 0.55 | 0.58 | 0.60 | 0.86 | 0.92 | 0.46 | 0.51 | 0.56 | 0.63 | ||||||
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).
1 Q2 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 8,453 ÷ 12,516 = 0.68
2 Click competitor name to see calculations.
The solvency profile of the organization underwent a prolonged period of strengthening from March 2022 through December 2025, followed by a significant shift in the leverage structure during the first half of 2026. The overall trend during the majority of the analyzed period was characterized by a systematic reduction in the debt-to-equity ratio, driven primarily by substantial growth in stockholders' equity while total debt remained relatively stable.
- Stockholders' Equity Growth
- A consistent and strong upward trajectory in stockholders' equity is observed, rising from 3,997 million USD in March 2022 to a peak of 12,964 million USD by December 2025. Although a slight contraction occurred in March 2026 to 11,728 million USD, equity recovered to 12,516 million USD by June 2026. This expansion indicates a significant increase in the organization's net asset base over the period.
- Total Debt Stability and Sudden Increase
- Between March 2022 and March 2026, total debt, including operating lease liabilities, remained remarkably stable, fluctuating within a narrow range between 2,125 million USD and 2,431 million USD. However, a sharp and substantial increase is noted in the final period ending June 30, 2026, where total debt surged to 8,453 million USD, representing a significant expansion of the company's liabilities.
- Debt to Equity Ratio Dynamics
- The debt-to-equity ratio exhibited a steady decline for over four years, falling from 0.55 in March 2022 to a low of 0.19 in December 2025. This trend highlights a period of aggressive deleveraging relative to equity growth. Following this nadir, the ratio experienced a marginal increase to 0.21 in March 2026, before spiking to 0.68 in June 2026. This final increase is a direct result of the aforementioned surge in total debt, returning the solvency ratio to levels exceeding those seen at the start of the analyzed period.
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Debt to Capital
ServiceNow Inc., debt to capital calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Stockholders’ equity | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Total capital | 20,033) | 13,219) | 14,455) | 12,792) | 12,422) | 11,629) | 11,098) | 10,779) | 10,154) | 9,595) | 9,116) | 8,669) | 8,413) | 7,086) | 6,518) | 6,008) | 5,679) | 5,569) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.38 | 0.11 | 0.10 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.21 | 0.23 | 0.25 | 0.26 | 0.28 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.03 | 0.06 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Adobe Inc. | 0.37 | 0.35 | 0.35 | 0.35 | 0.35 | 0.32 | 0.29 | 0.28 | 0.27 | 0.19 | 0.18 | 0.19 | 0.20 | 0.20 | 0.23 | 0.22 | 0.23 | 0.23 | ||||||
| AppLovin Corp. | 0.53 | 0.60 | 0.62 | 0.70 | 0.75 | 0.87 | 0.76 | 0.79 | 0.81 | 0.82 | 0.71 | 0.74 | 0.68 | 0.63 | 0.63 | 0.63 | 0.63 | 0.62 | ||||||
| Cadence Design Systems Inc. | 0.27 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.35 | 0.38 | 0.24 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.23 | 0.12 | 0.11 | ||||||
| CrowdStrike Holdings Inc. | 0.17 | 0.18 | 0.18 | 0.20 | 0.21 | 0.23 | 0.24 | 0.27 | 0.29 | 0.32 | 0.34 | 0.36 | 0.38 | 0.40 | 0.42 | 0.44 | 0.45 | 0.47 | ||||||
| Datadog Inc. | 0.18 | 0.20 | 0.21 | 0.22 | 0.23 | 0.36 | 0.37 | 0.22 | 0.24 | 0.25 | 0.27 | 0.29 | 0.31 | 0.33 | 0.34 | 0.36 | 0.38 | 0.40 | ||||||
| International Business Machines Corp. | 0.64 | 0.67 | 0.65 | 0.69 | 0.70 | 0.70 | 0.67 | 0.70 | 0.70 | 0.72 | 0.72 | 0.71 | 0.72 | 0.73 | 0.70 | 0.72 | 0.72 | 0.74 | ||||||
| Intuit Inc. | 0.24 | 0.24 | 0.23 | 0.24 | 0.26 | 0.25 | 0.25 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.31 | 0.30 | 0.30 | 0.29 | 0.30 | 0.17 | ||||||
| Microsoft Corp. | 0.09 | 0.11 | 0.11 | 0.12 | 0.13 | 0.14 | 0.16 | 0.21 | 0.24 | 0.24 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.26 | ||||||
| Oracle Corp. | 0.78 | 0.79 | 0.82 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | ||||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.05 | 0.08 | 0.10 | 0.16 | 0.21 | 0.29 | 0.47 | 0.53 | 0.75 | 0.83 | 0.88 | 0.95 | 0.92 | 0.97 | 0.88 | ||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.06 | ||||||
| Synopsys Inc. | 0.25 | 0.25 | 0.32 | 0.34 | 0.50 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Workday Inc. | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.31 | 0.32 | 0.33 | 0.35 | 0.35 | 0.45 | 0.46 | 0.29 | 0.30 | 0.32 | 0.35 | ||||||
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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,517 ÷ 20,033 = 0.38
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a prolonged period of deleveraging followed by a sudden and significant increase in leverage during the first half of 2026.
- Debt Obligation Trends
- Total debt remained remarkably stable for the majority of the observed period, fluctuating minimally between $1,485 million and $1,572 million from March 2022 through March 2026. This period of stability was interrupted in June 2026, when total debt surged to $7,517 million, indicating a substantial increase in borrowed funds.
- Capital Growth Patterns
- Total capital exhibited a consistent upward trajectory, increasing from $5,569 million in March 2022 to $13,219 million by March 2026. This growth accelerated in June 2026, reaching $20,033 million, a change primarily driven by the simultaneous expansion of total debt.
- Debt to Capital Ratio Analysis
- The debt to capital ratio demonstrated a sustained downward trend for over four years, declining from 0.28 in March 2022 to a minimum of 0.10 in December 2025. This indicates a period of strengthening solvency and a decreasing reliance on debt relative to total capital. This trend reversed abruptly in June 2026, as the ratio climbed to 0.38, the highest level in the period analyzed, reflecting a significant shift in the organization's capital structure.
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Debt to Capital (including Operating Lease Liability)
ServiceNow Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Current portion of operating lease liabilities | 114) | 118) | 112) | 107) | 104) | 103) | 102) | 106) | 98) | 92) | 89) | 91) | 90) | 97) | 96) | 89) | 87) | 87) | ||||||
| Operating lease liabilities, less current portion | 822) | 822) | 800) | 804) | 815) | 806) | 687) | 650) | 669) | 693) | 707) | 682) | 635) | 655) | 650) | 551) | 572) | 548) | ||||||
| Total debt (including operating lease liability) | 8,453) | 2,431) | 2,403) | 2,402) | 2,409) | 2,399) | 2,278) | 2,245) | 2,255) | 2,273) | 2,284) | 2,260) | 2,212) | 2,238) | 2,232) | 2,125) | 2,144) | 2,207) | ||||||
| Stockholders’ equity | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Total capital (including operating lease liability) | 20,969) | 14,159) | 15,367) | 13,703) | 13,341) | 12,538) | 11,887) | 11,535) | 10,921) | 10,380) | 9,912) | 9,442) | 9,138) | 7,838) | 7,264) | 6,648) | 6,338) | 6,204) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.40 | 0.17 | 0.16 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.29 | 0.31 | 0.32 | 0.34 | 0.36 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.13 | 0.14 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.15 | 0.15 | ||||||
| Adobe Inc. | 0.38 | 0.37 | 0.36 | 0.36 | 0.36 | 0.33 | 0.30 | 0.29 | 0.29 | 0.21 | 0.20 | 0.21 | 0.22 | 0.23 | 0.25 | 0.24 | 0.25 | 0.25 | ||||||
| CrowdStrike Holdings Inc. | 0.18 | 0.19 | 0.19 | 0.21 | 0.22 | 0.24 | 0.26 | 0.28 | 0.30 | 0.33 | 0.35 | 0.37 | 0.39 | 0.41 | 0.43 | 0.45 | 0.46 | 0.48 | ||||||
| Datadog Inc. | 0.23 | 0.24 | 0.26 | 0.27 | 0.28 | 0.39 | 0.40 | 0.27 | 0.29 | 0.30 | 0.31 | 0.33 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | ||||||
| International Business Machines Corp. | 0.65 | 0.68 | 0.66 | 0.70 | 0.71 | 0.71 | 0.68 | 0.71 | 0.71 | 0.73 | 0.73 | 0.72 | 0.73 | 0.74 | 0.71 | 0.73 | 0.73 | 0.75 | ||||||
| Intuit Inc. | 0.26 | 0.26 | 0.25 | 0.26 | 0.28 | 0.27 | 0.26 | 0.25 | 0.28 | 0.27 | 0.28 | 0.29 | 0.32 | 0.32 | 0.31 | 0.30 | 0.31 | 0.20 | ||||||
| Microsoft Corp. | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.20 | 0.24 | 0.27 | 0.28 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.29 | 0.29 | ||||||
| Oracle Corp. | 0.81 | 0.81 | 0.84 | 0.85 | 0.87 | 0.89 | 0.91 | 0.94 | 0.96 | 0.97 | 0.99 | 1.03 | 1.05 | 1.07 | 1.09 | 1.12 | 1.15 | 1.02 | ||||||
| Palantir Technologies Inc. | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.04 | 0.05 | 0.05 | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | ||||||
| Palo Alto Networks Inc. | 0.04 | 0.04 | 0.04 | 0.09 | 0.12 | 0.15 | 0.21 | 0.26 | 0.33 | 0.51 | 0.56 | 0.76 | 0.84 | 0.89 | 0.95 | 0.92 | 0.97 | 0.88 | ||||||
| Salesforce Inc. | 0.15 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.23 | 0.13 | ||||||
| Synopsys Inc. | 0.26 | 0.26 | 0.34 | 0.35 | 0.52 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | ||||||
| Workday Inc. | 0.29 | 0.28 | 0.27 | 0.28 | 0.29 | 0.29 | 0.29 | 0.33 | 0.34 | 0.35 | 0.37 | 0.38 | 0.46 | 0.48 | 0.32 | 0.34 | 0.36 | 0.39 | ||||||
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).
1 Q2 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,453 ÷ 20,969 = 0.40
2 Click competitor name to see calculations.
The solvency profile of the entity exhibits a prolonged period of deleveraging followed by a sharp increase in debt obligations in the final observed quarter. Between March 2022 and December 2025, a consistent strengthening of the capital structure is evident, characterized by a steady expansion of total capital relative to a stable debt load.
- Capital Structure Evolution
- Total capital grew steadily from 6,204 million USD in March 2022 to 15,367 million USD by December 2025, representing a significant increase in the total financing base. During this same window, total debt, including operating lease liabilities, remained remarkably stable, fluctuating narrowly between 2,125 million USD and 2,409 million USD.
- Debt to Capital Ratio Trend
- The debt to capital ratio followed a clear downward trajectory for the majority of the period, decreasing from 0.36 in March 2022 to a low of 0.16 in December 2025. This contraction indicates that the entity reduced its reliance on debt relative to its total capital, improving its long-term solvency position.
- Quarterly Variance and Final Period Spike
- A significant reversal in the solvency trend occurred in June 2026. Total debt rose abruptly from 2,431 million USD in March 2026 to 8,453 million USD in June 2026. This surge in liabilities resulted in the debt to capital ratio climbing to 0.40, the highest level recorded in the provided timeframe, effectively erasing the deleveraging gains achieved over the preceding four years.
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Debt to Assets
ServiceNow Inc., debt to assets calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Total assets | 31,666) | 24,381) | 26,038) | 21,789) | 22,051) | 20,972) | 20,383) | 18,434) | 18,207) | 17,544) | 17,387) | 15,091) | 14,923) | 13,614) | 13,299) | 11,106) | 11,102) | 10,993) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.24 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.02 | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Adobe Inc. | 0.22 | 0.21 | 0.21 | 0.22 | 0.22 | 0.21 | 0.19 | 0.19 | 0.19 | 0.13 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.15 | 0.16 | 0.16 | ||||||
| AppLovin Corp. | 0.43 | 0.46 | 0.48 | 0.55 | 0.59 | 0.65 | 0.60 | 0.64 | 0.67 | 0.67 | 0.58 | 0.62 | 0.58 | 0.54 | 0.55 | 0.55 | 0.54 | 0.52 | ||||||
| Cadence Design Systems Inc. | 0.21 | 0.24 | 0.24 | 0.26 | 0.26 | 0.27 | 0.28 | 0.31 | 0.19 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.15 | 0.16 | 0.08 | 0.08 | ||||||
| CrowdStrike Holdings Inc. | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.13 | 0.13 | 0.14 | 0.15 | 0.17 | 0.18 | 0.19 | 0.20 | 0.22 | 0.24 | 0.26 | ||||||
| Datadog Inc. | 0.13 | 0.14 | 0.15 | 0.16 | 0.17 | 0.27 | 0.28 | 0.16 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.24 | 0.25 | 0.26 | 0.28 | 0.29 | ||||||
| International Business Machines Corp. | 0.41 | 0.42 | 0.40 | 0.43 | 0.43 | 0.43 | 0.40 | 0.42 | 0.42 | 0.43 | 0.42 | 0.43 | 0.43 | 0.44 | 0.40 | 0.40 | 0.39 | 0.41 | ||||||
| Intuit Inc. | 0.18 | 0.18 | 0.16 | 0.18 | 0.20 | 0.18 | 0.19 | 0.19 | 0.20 | 0.21 | 0.22 | 0.23 | 0.26 | 0.26 | 0.25 | 0.24 | 0.26 | 0.14 | ||||||
| Microsoft Corp. | 0.06 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.10 | 0.14 | 0.16 | 0.16 | 0.11 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.16 | ||||||
| Oracle Corp. | 0.53 | 0.51 | 0.55 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | ||||||
| Palantir Technologies Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Palo Alto Networks Inc. | 0.00 | 0.00 | 0.00 | 0.02 | 0.03 | 0.03 | 0.05 | 0.06 | 0.10 | 0.13 | 0.14 | 0.26 | 0.28 | 0.29 | 0.30 | 0.33 | 0.35 | 0.35 | ||||||
| Salesforce Inc. | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.11 | 0.11 | 0.12 | 0.15 | 0.04 | ||||||
| Synopsys Inc. | 0.21 | 0.21 | 0.28 | 0.30 | 0.42 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Workday Inc. | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.18 | 0.21 | 0.22 | 0.22 | 0.22 | 0.24 | 0.31 | 0.32 | 0.18 | 0.20 | 0.20 | 0.22 | ||||||
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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,517 ÷ 31,666 = 0.24
2 Click competitor name to see calculations.
The solvency profile exhibits a prolonged period of deleveraging followed by a significant shift in capital structure during the final quarter of the analyzed period. From March 2022 through March 2026, the financial position was characterized by substantial asset growth coupled with stagnant debt levels, resulting in a steadily improving solvency ratio.
- Asset Base Expansion
- Total assets grew consistently from 10,993 million US dollars in March 2022 to 31,666 million US dollars by June 2026. This represents a significant expansion of the balance sheet, providing a larger cushion against total liabilities over the majority of the period.
- Debt Obligations Trend
- Total debt remained remarkably stable between 1,485 million and 1,491 million US dollars from June 2022 through March 2026. This stability ended abruptly in the final quarter ending June 30, 2026, when total debt surged to 7,517 million US dollars, indicating a major financing event or a strategic increase in leverage.
- Debt to Assets Ratio Dynamics
- The debt to assets ratio declined steadily from 0.14 in March 2022 to a low of 0.06 by March 2026. This downward trend reflects a decreasing reliance on borrowed funds relative to the size of the asset base. However, this trend reversed sharply in June 2026, with the ratio increasing to 0.24, driven by the spike in total debt despite continued asset growth.
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Debt to Assets (including Operating Lease Liability)
ServiceNow Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term debt, net | 2,082) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 88) | ||||||
| Long-term debt, net, less current portion | 5,435) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,484) | ||||||
| Total debt | 7,517) | 1,491) | 1,491) | 1,491) | 1,490) | 1,490) | 1,489) | 1,489) | 1,488) | 1,488) | 1,488) | 1,487) | 1,487) | 1,486) | 1,486) | 1,485) | 1,485) | 1,572) | ||||||
| Current portion of operating lease liabilities | 114) | 118) | 112) | 107) | 104) | 103) | 102) | 106) | 98) | 92) | 89) | 91) | 90) | 97) | 96) | 89) | 87) | 87) | ||||||
| Operating lease liabilities, less current portion | 822) | 822) | 800) | 804) | 815) | 806) | 687) | 650) | 669) | 693) | 707) | 682) | 635) | 655) | 650) | 551) | 572) | 548) | ||||||
| Total debt (including operating lease liability) | 8,453) | 2,431) | 2,403) | 2,402) | 2,409) | 2,399) | 2,278) | 2,245) | 2,255) | 2,273) | 2,284) | 2,260) | 2,212) | 2,238) | 2,232) | 2,125) | 2,144) | 2,207) | ||||||
| Total assets | 31,666) | 24,381) | 26,038) | 21,789) | 22,051) | 20,972) | 20,383) | 18,434) | 18,207) | 17,544) | 17,387) | 15,091) | 14,923) | 13,614) | 13,299) | 11,106) | 11,102) | 10,993) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.27 | 0.10 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.19 | 0.19 | 0.20 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.07 | 0.08 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | ||||||
| Adobe Inc. | 0.24 | 0.22 | 0.23 | 0.23 | 0.23 | 0.22 | 0.20 | 0.20 | 0.20 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.17 | 0.17 | 0.18 | 0.18 | ||||||
| CrowdStrike Holdings Inc. | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | 0.12 | 0.12 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.19 | 0.20 | 0.21 | 0.24 | 0.25 | 0.27 | ||||||
| Datadog Inc. | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.31 | 0.32 | 0.21 | 0.22 | 0.23 | 0.23 | 0.25 | 0.27 | 0.27 | 0.28 | 0.30 | 0.31 | 0.32 | ||||||
| International Business Machines Corp. | 0.43 | 0.45 | 0.43 | 0.45 | 0.46 | 0.46 | 0.43 | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.46 | 0.46 | 0.42 | 0.43 | 0.42 | 0.43 | ||||||
| Intuit Inc. | 0.20 | 0.20 | 0.18 | 0.19 | 0.22 | 0.20 | 0.20 | 0.20 | 0.22 | 0.22 | 0.24 | 0.25 | 0.28 | 0.28 | 0.27 | 0.25 | 0.27 | 0.16 | ||||||
| Microsoft Corp. | 0.09 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.13 | 0.17 | 0.19 | 0.19 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | ||||||
| Oracle Corp. | 0.61 | 0.58 | 0.62 | 0.60 | 0.60 | 0.59 | 0.62 | 0.64 | 0.66 | 0.65 | 0.67 | 0.70 | 0.71 | 0.70 | 0.69 | 0.72 | 0.73 | 0.67 | ||||||
| Palantir Technologies Inc. | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | ||||||
| Palo Alto Networks Inc. | 0.01 | 0.01 | 0.01 | 0.03 | 0.04 | 0.05 | 0.07 | 0.09 | 0.12 | 0.15 | 0.16 | 0.28 | 0.30 | 0.32 | 0.32 | 0.36 | 0.38 | 0.38 | ||||||
| Salesforce Inc. | 0.12 | 0.12 | 0.11 | 0.12 | 0.12 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | 0.19 | 0.09 | ||||||
| Synopsys Inc. | 0.23 | 0.23 | 0.30 | 0.31 | 0.45 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | ||||||
| Workday Inc. | 0.21 | 0.20 | 0.19 | 0.20 | 0.21 | 0.21 | 0.20 | 0.24 | 0.24 | 0.25 | 0.24 | 0.26 | 0.33 | 0.34 | 0.20 | 0.23 | 0.24 | 0.25 | ||||||
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).
1 Q2 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,453 ÷ 31,666 = 0.27
2 Click competitor name to see calculations.
The solvency profile exhibits a prolonged period of strengthening characterized by aggressive asset growth and stable leverage, followed by a significant shift in the final reported quarter.
- Long-term Asset Expansion and Deleveraging
- From March 31, 2022, through March 31, 2026, a consistent upward trajectory in total assets is observed, with values increasing from 10,993 million to 24,381 million. During this same interval, total debt, including operating lease liabilities, remained remarkably stable, fluctuating within a tight range between 2,125 million and 2,431 million. This combination of asset accumulation and static debt levels resulted in a steady decline in the debt-to-assets ratio, which contracted from 0.20 in early 2022 to a period low of 0.09 by December 31, 2025.
- Analysis of the Debt-to-Assets Ratio Trend
- The ratio demonstrates a sustained downward trend for nearly four years, indicating a significant reduction in the proportion of assets financed through debt. The ratio transitioned from 0.20 (March 2022) to 0.11 (through much of 2024 and 2025), suggesting a strengthening of the solvency position and an increase in the equity cushion relative to total liabilities.
- June 30, 2026 Inflection Point
- A sharp reversal in the solvency trend occurred in the final quarter. Total debt experienced a substantial increase, rising from 2,431 million to 8,453 million. While total assets also grew to 31,666 million during this period, the scale of the debt acquisition far outpaced asset growth. This led to a rapid spike in the debt-to-assets ratio to 0.27, marking the highest leverage level observed across the entire analysis period and reversing the previous four years of deleveraging.
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Financial Leverage
ServiceNow Inc., financial leverage calculation (quarterly data)
| 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 31,666) | 24,381) | 26,038) | 21,789) | 22,051) | 20,972) | 20,383) | 18,434) | 18,207) | 17,544) | 17,387) | 15,091) | 14,923) | 13,614) | 13,299) | 11,106) | 11,102) | 10,993) | ||||||
| Stockholders’ equity | 12,516) | 11,728) | 12,964) | 11,301) | 10,932) | 10,139) | 9,609) | 9,290) | 8,666) | 8,107) | 7,628) | 7,182) | 6,926) | 5,600) | 5,032) | 4,523) | 4,194) | 3,997) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 2.53 | 2.08 | 2.01 | 1.93 | 2.02 | 2.07 | 2.12 | 1.98 | 2.10 | 2.16 | 2.28 | 2.10 | 2.15 | 2.43 | 2.64 | 2.46 | 2.65 | 2.75 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Accenture PLC | 2.15 | 2.10 | 2.10 | 2.07 | 2.05 | 2.05 | 1.98 | 1.95 | 1.89 | 1.93 | 1.99 | 1.98 | 2.01 | 2.05 | 2.14 | 2.16 | 2.16 | 2.15 | ||||||
| Adobe Inc. | 2.60 | 2.60 | 2.54 | 2.44 | 2.46 | 2.29 | 2.14 | 2.05 | 2.02 | 1.86 | 1.80 | 1.84 | 1.88 | 1.88 | 1.93 | 1.86 | 1.88 | 1.89 | ||||||
| AppLovin Corp. | 2.61 | 3.26 | 3.40 | 4.30 | 5.11 | 9.92 | 5.39 | 5.80 | 6.47 | 6.92 | 4.27 | 4.57 | 3.61 | 3.12 | 3.07 | 3.08 | 3.11 | 3.06 | ||||||
| Cadence Design Systems Inc. | 1.76 | 1.84 | 1.85 | 1.85 | 1.90 | 1.89 | 1.92 | 2.01 | 1.70 | 1.60 | 1.67 | 1.74 | 1.77 | 1.76 | 1.87 | 1.83 | 1.66 | 1.59 | ||||||
| CrowdStrike Holdings Inc. | 2.47 | 2.53 | 2.65 | 2.55 | 2.52 | 2.70 | 2.88 | 2.87 | 3.00 | 3.20 | 3.43 | 3.40 | 3.39 | 3.48 | 3.53 | 3.48 | 3.47 | 3.39 | ||||||
| Datadog Inc. | 1.73 | 1.74 | 1.78 | 1.76 | 1.82 | 2.06 | 2.13 | 1.76 | 1.83 | 1.88 | 1.94 | 1.96 | 2.01 | 2.08 | 2.13 | 2.17 | 2.18 | 2.26 | ||||||
| International Business Machines Corp. | 4.41 | 4.74 | 4.65 | 5.24 | 5.40 | 5.42 | 5.02 | 5.49 | 5.57 | 5.90 | 6.00 | 5.60 | 5.96 | 6.19 | 5.80 | 6.27 | 6.57 | 7.00 | ||||||
| Intuit Inc. | 1.80 | 1.72 | 1.88 | 1.82 | 1.77 | 1.83 | 1.74 | 1.68 | 1.76 | 1.68 | 1.61 | 1.64 | 1.72 | 1.69 | 1.69 | 1.68 | 1.69 | 1.53 | ||||||
| Microsoft Corp. | 1.70 | 1.75 | 1.80 | 1.75 | 1.76 | 1.82 | 1.91 | 1.91 | 1.97 | 2.02 | 2.00 | 1.95 | 1.99 | 2.07 | 2.19 | 2.12 | 2.13 | 2.21 | ||||||
| Oracle Corp. | 6.84 | 7.47 | 8.23 | 9.65 | 10.80 | 13.33 | 16.20 | 24.38 | 34.74 | 57.66 | 125.24 | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | 1.19 | 1.21 | 1.20 | 1.23 | 1.24 | 1.24 | 1.27 | 1.28 | 1.28 | 1.27 | 1.30 | 1.31 | 1.35 | 1.35 | 1.35 | 1.39 | 1.40 | 1.40 | ||||||
| Palo Alto Networks Inc. | 2.66 | 2.72 | 3.01 | 3.04 | 3.29 | 3.45 | 3.87 | 4.01 | 4.20 | 6.82 | 8.29 | 11.50 | 18.06 | 24.69 | 58.35 | 32.88 | 88.29 | 20.09 | ||||||
| Salesforce Inc. | 1.59 | 1.63 | 1.68 | 1.56 | 1.60 | 1.61 | 1.67 | 1.57 | 1.59 | 1.63 | 1.69 | 1.55 | 1.57 | 1.58 | 1.64 | 1.53 | 1.60 | 1.52 | ||||||
| Synopsys Inc. | 1.54 | 1.55 | 1.70 | 1.75 | 2.40 | 1.40 | 1.45 | 1.51 | 1.54 | 1.58 | 1.68 | 1.67 | 1.68 | 1.70 | 1.71 | 1.66 | 1.66 | 1.65 | ||||||
| Workday Inc. | 1.96 | 1.93 | 1.99 | 1.90 | 1.95 | 1.95 | 2.04 | 2.10 | 2.19 | 2.23 | 2.41 | 2.29 | 2.58 | 2.68 | 2.31 | 2.24 | 2.36 | 2.53 | ||||||
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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 31,666 ÷ 12,516 = 2.53
2 Click competitor name to see calculations.
The financial trajectory from March 2022 to June 2026 is characterized by a substantial expansion of the balance sheet, with total assets and stockholders' equity both exhibiting strong growth, while the financial leverage ratio followed a non-linear path of reduction followed by a sharp increase.
- Asset and Equity Growth
- Total assets grew from 10,993 million USD in March 2022 to 31,666 million USD by June 2026, representing a significant increase in the organization's resource base. Stockholders' equity followed a similar upward trajectory, rising from 3,997 million USD to 12,516 million USD. This simultaneous growth indicates a steady accumulation of value and a strengthening of the equity base over the analyzed period.
- Deleveraging Phase
- Between March 2022 and September 2025, a consistent downward trend in financial leverage was observed. The ratio decreased from a high of 2.75 to a period low of 1.93. This trend suggests a strategic shift toward a more conservative capital structure, where the growth of assets was increasingly supported by equity rather than debt, thereby reducing the organization's financial risk profile.
- Recent Leverage Shift
- A reversal in the leverage trend occurred in the final quarters of the period. After reaching its low in late 2025, the financial leverage ratio climbed to 2.08 in March 2026 and spiked to 2.53 by June 2026. This sharp increase correlates with a substantial surge in total assets, which rose from 24,381 million USD in March 2026 to 31,666 million USD in June 2026, indicating that this specific expansion phase was funded more heavily through liabilities than through equity.
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