ServiceNow, Inc. Revenue & Financials

ServiceNow reported total revenues of $13.278 billion for fiscal year 2025, a 21% increase over the $10.984 billion recorded in 2024 and a 48% increase over the $8.971 billion generated in 2023, demonstrating consistent high-growth trajectory even at enterprise scale. Subscription revenues of $12.883 billion represented 97% of total revenue and grew 21% year-over-year, while professional services and other revenues contributed $395 million, or 3% of the total. Operating income for 2025 was $1.824 billion on a GAAP basis, yielding a GAAP operating margin of 13.7%, while non-GAAP operating income reached $3.92 billion with a 29.5% margin, reflecting the substantial impact of $1.96 billion in stock-based compensation and other adjustments. Net income was $1.748 billion in 2025, producing a profit margin of 13.2% and diluted earnings per share of $1.68 on a split-adjusted basis, compared to $6.84 in 2024 before the 5-for-1 stock split. The revenue composition reveals the company's subscription-centric model: subscription revenues of $12.883 billion (97% of total) are recognized ratably over contract terms, providing predictable recurring revenue, while professional services at $395 million (3% of total) operate at breakeven or slight loss to enable subscription growth. Gross profit reached $10.295 billion in 2025, yielding a 77.5% total gross margin, with subscription gross profit of $10.314 billion generating an 82% GAAP margin. Operating expenses were dominated by sales and marketing at $4.388 billion (33% of revenue) and research and development at $2.960 billion (22% of revenue), reflecting the company's dual investment in go-to-market expansion and product innovation. The balance sheet remains strong, with $6.284 billion in cash and marketable securities ($3.726 billion cash plus $2.558 billion marketable securities) against total liabilities of $13.074 billion, including $1.491 billion in long-term debt and $10.443 billion in current liabilities that are largely offset by deferred revenue. Stockholders' equity of $12.964 billion provides a solid foundation, and the company generated $5.11 billion in levered free cash flow during the trailing twelve months ended June 2026. Current remaining performance obligations (cRPO) of $10.92 billion as of Q2 2025 provide 12 months of highly visible contracted revenue, while total RPO of $22.3 billion as of December 2024 represents 23% year-over-year growth. The company's capital allocation includes share repurchases to manage dilution from stock-based compensation, with the board authorizing an additional $5 billion for the repurchase program in January 2026. Fourth quarter 2025 revenues of $3.568 billion increased 21% over Q4 2024, with subscription revenues of $3.466 billion growing 21% year-over-year. The 5-for-1 stock split executed in December 2025 reduced the nominal share price from approximately $854 to $171 but did not affect market capitalization or fundamentals.