ServiceNow
ServiceNow delivers solutions that help public and private organizations govern, secure and manage artificial intelligence and digitalize and streamline workflows to drive collaboration, productivity and better experiences across the enterprise.
10-K, Jan 29, 2026
Source and method
In the company’s words: first descriptive sentence of 10-K Item 1, verbatim (extractive). Item 1 · Business · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Business
How does ServiceNow make money?
License And Service is 97.0% of revenue.
Source and method
Revenue by revenue types, FY2025.
annual report FY2025 · 0001373715-26-000007 · shares derived = part / total revenue
Calculated: share = part revenue ÷ total revenue ($13.3B).
- License And Service: $12.9B · 97.0%
- Technology Service: $395M · 3.0%
What is left of every $100?
Of every $100 in revenue, $13 is net income.
Source and method
Of every $100 of revenue, FY2025.
Calculated: amount ÷ revenue × 100.
- Revenue: $13.3B
- Gross profit: $10.3B
- Operating income: $1.8B
- Net income: $1.7B
- Free cash flow: $4.6B
Where do customers sit?
62.9% of revenue is from North America.
Source and method
Revenue by region, latest annual report.
10-K · 0001373715-26-000007 · XBRL revenue by region · one level, shares add up to 100.0% · derived
Calculated: share = region revenue ÷ total revenue.
In the company’s words ›
“We offer an innovative suite of products, including AI-powered applications, and services designed to automate workflows, integrate systems and empower employees, regardless of existing systems, cloud environments or collaboration tools.”
“At the core of these solutions is the ServiceNow AI Platform, a robust, cloud-based platform that facilitates comprehensive delivery of seamless workflows and drives digital transformation across all departments and personas within an organization.”
“With the emergence of artificial intelligence, organizations are under pressure from their stakeholders to accelerate growth and achieve unprecedented productivity improvements.”
Item 1 · Business · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Thesis
Why do people invest?
1 reason in the company’s own words.
R&D investment
“Research and development expenses (“R&D”) increased by $417 million during the year ended December 31, 2025, compared to the prior year, primarily due to increased headcount resulting in an increase in personnel-related costs including stock-based compensation and overhead expenses of $383 million compared to the prior year.”
Item 7 · MD&A · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Number check (R&D expense): stated $417M matches the stored change ($417M, ±10%)
R&D expense: $3.0B FY2025 · +16.4% vs FY2024 · Profitability charts
Source and method
Verbatim · selection. Sentences selected by rules from the 10-K and checked word for word against it; no AI summary. Not investment advice, not a recommendation, no forecast.
1 of 2 points met the selection rules (score, subject = the metric, quoted number within ±10% of the stored value).
- Subscription revenue growth: no stored value to check the quoted number against.
Position (in the company’s words): no filing sentence met the rules.
KPIs
How fast is revenue growing?
Revenue grew 21% to $13.3B.
Revenue grew 24% YoY to $4.0B.
Source & method
- Counted
- Total revenue, as filed in 10-K / 20-F / 10-Q XBRL.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Did the growth reach the shareholder?
Per share, revenue grew 78.2%.
Source & method
- Counted
- Revenue and weighted-average diluted shares, as filed, first and last fiscal year of the range.
- Formulas
- Revenue per diluted share = revenue / diluted shares; growth = (to / from) − 1. All three changes are calculated.
- Guards
- IPO: if the start year ended more than 365 days before the first SEC filing and diluted shares then rose ≥25%, the range is hidden by default (Options → Include IPO-distorted periods). Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How profitable is it?
13.7% operating margin, up from 12.4%.
77.5% gross margin, down from 79.2%.
Operating income grew 34% to $1.8B.
Net income grew 23% to $1.7B.
R&D grew 16% to $3.0B.
SG&A grew 15% to $5.5B.
EPS diluted: $1.67.
4.1% operating margin, down from 11.1%.
70.7% gross margin, down from 77.5%.
Operating income fell 55% YoY to $162M.
Net income fell 23% YoY to $298M.
R&D grew 25% YoY to $915M.
SG&A grew 24% YoY to $1.7B.
EPS diluted: $0.29.
Source & method
- Counted
- Income statement items, as filed.
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated. Values marked “calculated” are derived by Hollsteen, not taken verbatim from a filing.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
- Note
- Prior year restated in a later filing.
How much cash does it make, and where does it go?
Keeps $34 of every $100 as free cash.
Operating cash flow grew 28% to $5.4B.
Capex grew 1.9% to $868M.
Buybacks grew 164% to $1.8B.
Stock-based compensation grew 12% to $2.0B.
Free cash flow fell 10% YoY to $473M.
Operating cash flow fell 18% YoY to $587M.
Capex fell 40% YoY to $114M.
Buybacks: $0 in FY2026 Q2.
Stock-based compensation grew 31% YoY to $652M.
Source & method
- Counted
- Cash flow statement items, as filed; free cash flow = operating cash flow − capex (calculated).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
How strong is the balance sheet?
$3.7B cash vs $1.5B debt.
Total debt grew 0.1% to $1.5B.
Total assets grew 28% to $26.0B.
Equity grew 35% to $13.0B.
Cash fell 20% YoY to $2.5B.
Total debt grew 404% YoY to $7.5B.
Interest expense grew 1000% YoY to $66.0M.
Total assets grew 44% YoY to $31.7B.
Equity grew 14% YoY to $12.5B.
Source & method
- Counted
- Balance sheet items at fiscal year end, as filed; total debt is derived from reported components (excl. operating leases).
- Formulas
- Values as filed; margins = metric / revenue of the same period (calculated). Change vs prior period is calculated.
- Guards
- Gaps are shown as 'not reported', never interpolated.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Dependencies
How much revenue hangs on one customer?
One customer: 11% of revenue.
Source & method
- Counted
- Largest customers as disclosed in the annual report (share of revenue).
- Formulas
- One customer in dollars = disclosed share × total revenue of the same fiscal year (calculated), only where the filing text confirms the share is of total revenue.
- Guards
- Anonymous customers stay anonymous. Segment-based shares are never multiplied by total revenue.
- Coverage
- SEC filings only · 100 companies covered
- As of
- Oct 15, 2026
Customers, suppliers, stakes and mentions ›
Only what filings state. Anonymous customers stay anonymous.
Largest customers (ServiceNow annual report)
10-K · 0001373715-26-000007 · filed Jan 29, 2026
Suppliers named by ServiceNow
No supplier among the covered companies is named in the filings.
ServiceNow holds stakes in
No stake in a covered company found in SEC filings.
Others name ServiceNow
1 competitor mention (e.g. Ciena) · 2 other mentions (e.g. Okta, Workday) in covered companies’ filings. Mentions, not confirmed relationships.
Risks
What could go wrong?
4 of 32 risk factors, one per theme.
Competition
“A failure to innovate and adapt how we offer our products in response to rapidly evolving technological changes and in the midst of an intensely competitive market may harm our competitive position and business prospects.”
Item 1A · Risk Factors · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Trade, government policy and geopolitics
“If we fail to comply with applicable anti-corruption and anti-bribery laws, export control laws, economic and trade sanctions laws, or other global trade laws, we could be subject to penalties and civil and/or criminal sanctions and our business could be materially adversely affected.”
Item 1A · Risk Factors · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
AI and new products
“Incorporating AI technology into our offerings may result in operational, legal, regulatory, ethical and other challenges.”
Item 1A · Risk Factors · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Regulation and legal proceedings
“Laws, regulations and customer expectations regarding the use, storage and movement of data may restrict our ability to continue to optimize our platform.”
Item 1A · Risk Factors · 10-K · 0001373715-26-000007 · filed Jan 29, 2026
Source and method
Short verbatim quotes from the risk factors in Item 1A, one per theme (a partial selection). Full list: 10-K.
Who’s invested
Who owns more than 5%?
Vanguard Capital Management LLC holds 7.49%.
Vanguard Capital Management LLC7.49%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
BlackRock, Inc.8.9% (then)
13G/A · as of Dec 31, 2024 · filed Feb 5, 2025 · older than 18 months, current position unknown
Source and method
Holders above 5% from Schedule 13G/13D, SEC filings only. “(then)”: reported in a filing older than 18 months; the current position is not known from SEC 13G/13D data.
4 filings reporting a stake below 5% (e.g. after selling) not listed.
13F holders and insider trades ›
Largest institutional holders, 13F, quarter ending Jun 30, 2026
BlackRock, Inc.11.3%
96.1M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC7.9%
67.4M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.8%
49.0M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Morgan Stanley3.1%
26.6M shares · 13F filed Aug 13, 2026 · share of 13F-reported
Vanguard Portfolio Management LLC3.0%
25.2M shares · 13F filed Aug 13, 2026 · share of 13F-reported
2,234 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding. 1 large filing with inconsistent reported value per share left out.
Insiders, last 12 months (Form 4, open market)
2 purchases · 29 sales · $9.3M sold
Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026
All metrics
All metrics · 35 SEC metrics, FY2016–FY2025
Income statement 12
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue | ||||||||||
| D&A | ||||||||||
| G&A | ||||||||||
| Gross profit | ||||||||||
| Income taxes | ||||||||||
| Interest expense | not reported | not reported | not reported | |||||||
| Net income | ||||||||||
| Operating income | ||||||||||
| Research and development | ||||||||||
| Revenue | ||||||||||
| SG&A calc. | ||||||||||
| Sales & marketing | ||||||||||
Balance sheet 9
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and equivalents | ||||||||||
| Current liabilities | ||||||||||
| Current portion of long-term debt | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |||
| Equity | ||||||||||
| Equity incl. NCI | ||||||||||
| Long-term debt | ||||||||||
| Total assets | ||||||||||
| Total debt calc. | ||||||||||
| Total liabilities & equity | ||||||||||
Cash flow 6
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Buybacks | not reported | |||||||||
| Capex | ||||||||||
| Free cash flow calc. | ||||||||||
| Interest paid | not reported | not reported | not reported | |||||||
| Operating cash flow | ||||||||||
| Stock-based compensation | ||||||||||
Per share & shares 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| EPS basic | ||||||||||
| EPS diluted | ||||||||||
| Wtd. shares basic | ||||||||||
| Wtd. shares diluted | ||||||||||
Other 4
| Metric | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Other income (incl. interest) | ||||||||||
| Pretax income | ||||||||||
| Short-term borrowings / commercial paper | not reported | not reported | not reported | not reported | not reported | not reported | not reported | not reported | not reported | |
| Total liabilities | ||||||||||
Method
extractive: verbatim sentences selected by rules from Item 1, 1A and 7; no AI summary; every sentence matched verbatim against the filing text. Numbers: Hollsteen SEC dataset. Every value opens its SEC source · version history of all values