ServiceNow Inc. (NYSE:NOW)

Gross Profit Margin

The gross profit margin exhibits a generally stable and slightly increasing trend over the periods observed. Starting at 78.16% in March 2020, the margin fluctuates mildly but remains within a narrow range, reaching a peak of 79.24% by September 2024 before a slight decline to 78.52% in June 2025. This emphasizes consistent cost management relative to revenue.

Operating Profit Margin

The operating profit margin shows a significant positive trajectory over time. Initial values around 4.4% in March 2020 increase gradually, with occasional minor dips, culminating at 13.28% in June 2025. This upward trend indicates improved operational efficiency and better control of operating expenses relative to revenue.

Net Profit Margin

The net profit margin reflects notable growth with some volatility. From a lower starting point of 2.62% in March 2020, it rises steadily to reach a remarkable peak of 20.34% in December 2023. Following this peak, the margin decreases to 11.51% in March 2024 but then stabilizes around the 13% mark through mid-2025. The sharp increase and subsequent moderation suggest episodes of enhanced profitability possibly influenced by non-operating income or expense factors.

Return on Equity (ROE)

Return on equity shows a marked improvement during the timeline. Beginning at 4.18% in March 2020, it climbs steadily, peaking at 23.78% in December 2023. After this peak, it decreases to approximately 15.19% by June 2025. Although the ROE experiences a decline after its highest point, it remains well above initial levels, reflecting stronger returns generated from shareholders' equity.

Return on Assets (ROA)

Return on assets follows an upward pattern with less fluctuation than ROE. It starts at 1.36% in March 2020 and reaches 10.99% in December 2023, followed by a decrease to around 7.53% by June 2025. Despite the decline after the peak, the overall improvement over the period indicates enhanced efficiency in asset utilization to generate net income, albeit with moderate volatility.

Revenue Trend

The revenues show a consistent upward trajectory throughout the periods analyzed. Starting from $1,046 million in March 2020, revenues increased steadily each quarter, reaching $3,215 million by June 2025. This represents a substantial growth over the five-year span, indicating sustained business expansion.

Gross Profit Performance

Gross profit has also exhibited continuous growth in line with the increase in revenues. Beginning at $823 million in March 2020, gross profit rose progressively every quarter to reach $2,491 million by June 2025. The growth in gross profit closely mirrors the growth in revenues, suggesting effective cost management and scalability of operations.

Gross Profit Margin Analysis

The gross profit margin percentages are available from the quarter ending March 2021 onward, showing stability and gradual improvement. Initially recorded at 78.16% in March 2021, the margin maintains values consistently in the high 70s percentile range, reaching a peak of approximately 79.24% in September 2024. By June 2025, the margin slightly declines to around 78.52%. This indicates strong and stable profitability with marginal fluctuations, reflecting efficient production and operational cost control relative to sales.

Overall Observations

The data reflects a positive growth trend in top-line revenues accompanied by a proportional increase in gross profit, maintaining a robust and stable gross profit margin. The gradual improvement in gross profit margin implies that the company has been able to enhance operational efficiencies or pricing power over time. The consistent quarterly increases reveal effective growth execution without significant volatility or margin erosion.

Income from operations

The income from operations exhibits significant fluctuations over the observed periods. Initial quarters show moderate values ranging from 18 to 69 million US dollars. Starting from 2021, the figures display volatility, with some quarters experiencing decreases while others show substantial increases. Notably, from March 2023 onward, there is a pronounced upward trend, peaking at 451 million US dollars in September 2025, indicating marked operational profitability improvement toward the end of the period under review.

Revenues

Revenues consistently increase throughout the observed quarters, demonstrating steady growth without interruption. Beginning at 1,046 million US dollars in March 2020, revenues climb progressively each quarter, surpassing the 3,000 million US dollars threshold by the last period in June 2025. The growth trend shows no signs of deceleration, reflecting strong and consistent top-line expansion.

Operating profit margin

The operating profit margin data, available from late 2020, reveal a continuous improvement over time. Initial margins start at 4.4% and incrementally increase each quarter, with some minor variations. From early 2023, there is a more pronounced upward trend in operating profitability, reaching a peak margin of 13.28% by June 2025. This improving margin trend suggests enhanced operational efficiency and cost management alongside increasing revenues.

Overall trends and insights

The data demonstrate a strongly positive trajectory both in revenue growth and operational profitability. While income from operations shows some volatility in earlier periods, it stabilizes and improves significantly in recent years. The consistent expansion in revenues coupled with rising operating profit margins suggests that the company is effectively scaling its business while improving cost efficiency. The increasing operating profit margin, especially the surge from 2023 onwards, indicates that growth is not solely volume-driven but also profitability-enhanced.

The quarterly financial data reveals several notable trends in key performance indicators over the periods analyzed.

Net Income

Net income exhibits considerable fluctuations throughout the periods. Starting with moderate results around 40-80 million USD in early quarters, it shows a significant surge in June 2023, reaching an unusually high 1044 million USD. Following this peak, net income settles into a range between approximately 240 million and 460 million USD in subsequent quarters, demonstrating improved profitability compared to earlier years but with evident volatility.

Revenues

Revenues show a consistent upward trend over the entire timeframe. Beginning near 1,046 million USD in early 2020, revenues steadily increase each quarter, surpassing 3,200 million USD by the first quarter of 2025. This reflects ongoing strong growth in sales or service deliveries, indicating sustained demand and expansion over the analyzed periods.

Net Profit Margin

The net profit margin starts with incomplete data but later reflects a generally improving trend from approximately 2.6% to a peak of about 20.3% in late 2023. After this high point, the margin declines somewhat but remains substantially higher than early values, stabilizing between 11.5% and 13.8% in the final quarters. This suggests enhanced profitability efficiency relative to revenue, notwithstanding some volatility and a notable margin spike linked to the net income jump in mid-2023.

In summary, the data indicates robust revenue growth complemented by fluctuating net income, with a significant earnings spike impacting profit margins positively in 2023. The net profit margin improvements imply better cost management or operational efficiencies over time, although the net income variability warrants further investigation to understand the underlying causes of such exceptional quarterly results.

Net Income

The net income demonstrates notable fluctuations over the observed periods. Initial quarters in 2020 show relatively modest values ranging from 13 to 48 million USD. In 2021, net income experienced variability with a peak of 82 million in the first quarter but also lower values mid-year. A significant escalation occurs from late 2022 through 2023, particularly in June 2023, where net income surged to 1044 million USD, indicating an exceptional gain or event. Following this peak, net income stabilizes at elevated levels between 242 and 460 million, maintaining a substantially higher baseline than in earlier periods.

Stockholders’ Equity

Stockholders’ equity exhibits a consistent upward trend across all periods. Starting at 2266 million USD in March 2020, there is steady growth each quarter without decline, culminating in 10932 million USD by June 2025. This continuous accumulation of equity suggests ongoing capital retention, growth through earnings, or infusion of additional equity capital, reflecting solid financial foundation and expansion over time.

Return on Equity (ROE %)

ROE data begins from March 2021, initially ranging between 4.18% and 6.24%, modest but stable. From early 2023 onward, ROE increases sharply to above 20%, corresponding with the spike in net income during the same timeframe. This elevated ROE level persists, fluctuating but remaining well above pre-2023 figures, indicating improved profitability relative to equity. Despite some reduction post-peak, ROE remains consistently above 13%, suggesting enhanced efficiency in generating earnings from equity.

Overall Insights

The data reflects a company in a growth phase, with equity steadily increasing and profitability measures improving significantly starting in 2023. The extraordinary net income peak in mid-2023 drastically influences ROE, driving it to historically high levels. After this spike, the company sustains stronger profitability compared to earlier years, while continuing to build shareholder equity. This trend points to a positive financial trajectory, combining capital growth with improved returns to shareholders.

The financial data reveals various observable trends in key metrics over a series of quarters.

Net Income

The net income figures demonstrate a notable volatility with a general upward trajectory over time. Initial figures started modestly in early 2020, fluctuating considerably in subsequent quarters. Beginning around mid-2022, net income exhibits substantial growth, peaking sharply in several quarters such as June 2023. Although there are fluctuations quarter-to-quarter, the overall trend points to increased profitability, particularly from 2022 onwards.

Total Assets

Total assets show a steady and consistent increase throughout the entire period. Starting at just over 6 billion US dollars in early 2020, assets rose progressively each quarter, reaching beyond 20 billion US dollars by mid-2025. This indicates sustained investment or accumulation of assets, reflecting growth and possibly expansion activities.

Return on Assets (ROA)

The return on assets metric, available from late 2020 onwards, displays a generally improving trend despite some variability. Early ROA percentages hovered around low single digits but showed improvement through 2021 and 2022. A significant peak is observed in 2023, peaking above 9%, suggesting enhanced efficiency in asset utilization. Following this peak, ROA stabilizes at a higher percentage range than earlier years, indicating an overall improvement in profitability relative to asset base.

In summary, the data collectively suggest an entity experiencing growth in asset base and improving profitability, with fluctuations in net income likely reflecting underlying operational or market conditions. The increased ROA post-2022 supports the view of more effective asset utilization leading to better financial performance.