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ServiceNow NOW · USD

Information Technology · Software · US listing · 🇺🇸 United States

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ServiceNow annual report

Filed with the US Securities and Exchange Commission

10-K

The latest annual report covers the year to 31 Dec 2025, filed on 29 Jan 2026.

Read the 10-K on SEC.gov ↗

Five-year highlights

In USD.

FY2025FY2024FY2023FY2022FY2021
Revenue$13.28bn$10.98bn$8.97bn$7.25bn$5.90bn
Operating income$1.82bn$1.36bn$762.0m$382.0m$257.0m
Net income$1.75bn$1.43bn$1.73bn$325.0m$230.0m
Free cash flow$4.58bn$3.42bn$2.70bn$2.17bn$1.79bn
Total assets$26.04bn$20.38bn$17.39bn$13.30bn$10.80bn
Shareholders' equity$12.96bn$9.61bn$7.63bn$5.03bn$3.69bn

Revenue by business

Year to 31 Dec 2025

  • Subscription $12.88bn · 97.0%
  • Professional services and other $395.0m · 3.0%

Revenue by region

Year to 31 Dec 2025

  • North America $8.35bn · 62.9%
  • EMEA $3.40bn · 25.6%
  • Asia Pacific and other $1.53bn · 11.5%

From the 2025 annual report

As filed, for the year to . A later report may be linked above: this is the newest our data supplier has processed.

As filed
Auditor
PricewaterhouseCoopers LLP
Auditor location
San Jose, California
Balance sheet USD ($) shares in Thousands, $ in Millions
Cash and cash equivalents3,7262,304
Marketable securities2,5583,458
Accounts receivable, net2,6272,240
Current portion of deferred commissions590517
Prepaid expenses and other current assets970668
Total current assets10,4719,187
Deferred commissions, less current portion1,114999
Long-term marketable securities3,7714,111
Strategic investments1,542472
Property and equipment, net2,2891,763
Operating lease right-of-use assets806693
Intangible assets, net1,121209
Goodwill3,5781,273
Deferred tax assets1,0561,385
Other assets290291
Total assets26,03820,383
Accounts payable20468
Accrued expenses and other current liabilities1,8131,369
Current portion of deferred revenue8,3146,819
Current portion of operating lease liabilities112102
Total current liabilities10,4438,358
Deferred revenue, less current portion12095
Operating lease liabilities, less current portion800687
Long-term debt, net1,4911,489
Other long-term liabilities220145
Total liabilities13,07410,774
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued or outstanding00
Common stock, $0.001 par value; shares authorized: 3,000,000; shares issued: 1,065,776 and 1,040,757; shares outstanding: 1,047,278 and 1,032,43711
Treasury stock, at cost (shares held: 18,498 and 8,320)-3,045-1,219
Additional paid-in capital10,7477,401
Accumulated other comprehensive income (loss)19-68
Retained earnings5,2423,494
Total stockholders’ equity12,9649,609
Total liabilities and stockholders’ equity26,03820,383
Preferred stock, shares authorized (in shares)10,00010,000
Cash flow statement USD ($) $ in Millions
Dec. 31, 2025Dec. 31, 2024Dec. 31, 2023
Net income—1,7481,4251,731
Depreciation and amortization—738564562
Amortization of deferred commissions—621550459
Stock-based compensation—1,9551,7461,604
Deferred income taxes—24998-857
Other—104-510
Accounts receivable—-312-254-300
Deferred commissions—-758-713-717
Prepaid expenses and other assets—-384-332-203
Accounts payable—55-52-142
Deferred revenue—1,1791,1791,085
Accrued expenses and other liabilities—249107176
Net cash provided by operating activities—5,4444,2673,398
Purchases of property and equipment—-868-852-694
Business combinations, net of cash acquired—-1,084-113-279
Purchases of other intangibles—-43-40-3
Purchases of marketable securities—-2,814-5,031-4,634
Purchases of strategic investments—-1,056-181-75
Sales and maturities of marketable securities—4,1383,7523,522
Other—38-36-4
Net cash used in investing activities—-1,689-2,501-2,167
Proceeds from employee stock plans—270237194
Repurchases of common stock—-1,840-696-538
Taxes paid related to net share settlement of equity awards—-770-700-459
Business combination—0-1840
Net cash used in financing activities—-2,340-1,343-803
Foreign currency effect on cash, cash equivalents and restricted cash—7-171
Net change in cash, cash equivalents and restricted cash—1,422406429
Cash, cash equivalents and restricted cash at beginning of period—2,3101,9041,475
Cash, cash equivalents and restricted cash at end of period—3,7322,3101,904
Cash and cash equivalents—3,7262,3041,897
Restricted cash included in prepaid expenses and other current assets—667
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows—3,7322,3101,904
Interest paid—222323
Income taxes paid, net of refunds[1]283230127
Property and equipment included in accounts payable, accrued expenses and other liabilities—1545544
Fair value of common stock issued for business combinations—1,90100
Federal—46642
State—835554
Foreign—15411171
Income taxes paid, net of refunds[1]283230127
Foreign—382519
Foreign—342815
Foreign—29179
Foreign—22157
State—15—10
State———14
[1] Income taxes paid, net of refunds, disaggregated by jurisdiction, are outlined below:Year Ended December 31,202520242023Federal$46 $64 $2 State83 55 54 Foreign154 111 71 Income taxes paid, net of refunds$283 $230 $127 Income taxes paid, net of refunds exceeding 5 percent of total income taxes paid, net of refundsForeignIndia$38 $25 $19 Brazil34 28 15 Ireland29 17 9 Netherlands22 15 7 StateNew Jersey15 *10 Illinois**14 *The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.———[1]Income taxes paid, net of refunds, disaggregated by jurisdiction, are outlined below:Year Ended December 31,202520242023Federal$46 $64 $2 State83 55 54 Foreign154 111 71 Income taxes paid, net of refunds$283 $230 $127 Income taxes paid, net of refunds exceeding 5 percent of total income taxes paid, net of refundsForeignIndia$38 $25 $19 Brazil34 28 15 Ireland29 17 9 Netherlands22 15 7 StateNew Jersey15 *10 Illinois**14 *The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.—————————————————————Year Ended December 31,—————————————————2025—————2024—————2023——Federal——$46————$64————$2—State——83—————55—————54——Foreign——154—————111—————71——Income taxes paid, net of refunds——$283————$230————$127———————————————————Income taxes paid, net of refunds exceeding 5 percent of total income taxes paid, net of refunds—————————————————Foreign—————————————————India——$38————$25————$19—Brazil——34—————28—————15——Ireland——29—————17—————9——Netherlands——22—————15—————7——————————————————————————————————————State—————————————————New Jersey——15—————*—————10——Illinois——*—————*—————14——
[1]Income taxes paid, net of refunds, disaggregated by jurisdiction, are outlined below:Year Ended December 31,202520242023Federal$46 $64 $2 State83 55 54 Foreign154 111 71 Income taxes paid, net of refunds$283 $230 $127 Income taxes paid, net of refunds exceeding 5 percent of total income taxes paid, net of refundsForeignIndia$38 $25 $19 Brazil34 28 15 Ireland29 17 9 Netherlands22 15 7 StateNew Jersey15 *10 Illinois**14 *The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.—————————————————————Year Ended December 31,—————————————————2025—————2024—————2023——Federal——$46————$64————$2—State——83—————55—————54——Foreign——154—————111—————71——Income taxes paid, net of refunds——$283————$230————$127———————————————————Income taxes paid, net of refunds exceeding 5 percent of total income taxes paid, net of refunds—————————————————Foreign—————————————————India——$38————$25————$19—Brazil——34—————28—————15——Ireland——29—————17—————9——Netherlands——22—————15—————7——————————————————————————————————————State—————————————————New Jersey——15—————*—————10——Illinois——*—————*—————14——
items——Year Ended December 31,
items——2025—————2024—————2023
Federal——$46————$64————$2—
State——83—————55—————54——
Foreign——154—————111—————71——
Income taxes paid, net of refunds——$283————$230————$127—
India——$38————$25————$19—
Brazil——34—————28—————15——
Ireland——29—————17—————9——
Netherlands——22—————15—————7——
New Jersey——15—————*—————10——
Illinois——*—————*—————14——
Note: Segment and Geographic Informat

Segment and Geographic Information Segment InformationOur chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net income are interest income, other expense, net and the provision for (benefit from) income taxes, which are reflected in the consolidated statements of comprehensive income.Geographic InformationRevenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions): Year Ended December 31, 202520242023North America (1)$8,348 $6,909 $5,702 EMEA (2)3,402 2,834 2,298 Asia Pacific and other1,528 1,241 971 Total revenues$13,278 $10,984 $8,971 Property and equipment, net by geographic area were as follows (in millions): December 31,20252024Property and equipment, net:North America (3)$1,437 $1,144 EMEA (2)563 428 Asia Pacific and other289 191 Total property and equipment, net$2,289 $1,763 (1)Revenues attributed to the United States were 94% of North America revenues for each of the years ended December 31, 2025, 2024, and 2023.(2)Europe, the Middle East and Africa (“EMEA”).(3)Property and equipment, net attributed to the United States were 82% and 79% of property and equipment, net attributable to North America as of December 31, 2025 and 2024, respectively.

Note: Deferred Revenue and Performanc

Deferred Revenue and Performance ObligationsRevenues recognized from beginning period deferred revenue during the years ended December 31, 2025 and 2024 were $6.9 billion and $5.7 billion, respectively. Remaining Performance ObligationsTransaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance.As of December 31, 2025, the total non-cancellable RPO under our contracts with customers was $28.2 billion, and we expect to recognize revenues on approximately 46% of these RPO over the following 12 months. The majority of the non-current RPO will be recognized over the next 13 to 36 months.

Note: Commitments and Contingencies

Commitments and Contingencies Operating LeasesFor some of our offices and data centers, we have entered into non-cancellable operating lease agreements with various expiration dates through 2036. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments.Total operating lease costs were $147 million, $130 million and $129 million for each of the years ended December 31, 2025, 2024 and 2023, respectively. For the years ended December 31, 2025 and 2024, total cash paid for amounts included in the measurement of operating lease liabilities was $107 million and $85 million, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets totaled $225 million and $84 million for the years ended December 31, 2025 and 2024, respectively.As of December 31, 2025, the weighted-average remaining lease term is approximately eight years, and the weighted-average discount rate is 4%.Maturities of operating lease liabilities as of December 31, 2025 are presented in the table below (in millions):Fiscal Period:2026$147 2027145 2028143 2029134 2030118 Thereafter383 Total operating lease payments1,070 Less: imputed interest(158)Present value of operating lease liabilities$912 In addition to the amounts above, as of December 31, 2025, we have leases, primarily for offices, that have not yet commenced with minimum undiscounted cash flows of $381 million. These leases are expected to commence between 2026 and 2027 with lease terms of five to sixteen years.Other CommitmentsOther contractual commitments primarily consist of data center and IT operations, cloud services and sales and marketing activities related to our daily business operations. Future minimum payments under our non-cancellable purchase commitments as of December 31, 2025 are presented in the table below (in millions):Fiscal Period:Cloud ServicesObligationsOther PurchaseObligationsTotal PurchaseObligations2026$372 $691 $1,063 2027331 498 829 2028500 1,606 2,106 2029630 216 846 20302,826 119 2,945 Thereafter— 157 157 Total$4,659 $3,287 $7,946 We have entered into various non-cancellable agreements with cloud service providers, under which we have committed to spend an aggregate of approximately $4.8 billion through 2030 on cloud services.

Note: Debt

Debt For the periods ended December 31, 2025 and 2024, the carrying value of our outstanding debt was $1,491 million and $1,489 million, respectively, net of unamortized debt discount and issuance costs of $9 million and $11 million, respectively.We consider the fair value of the 2030 Notes at December 31, 2025 and 2024 to be a Level 2 measurement. The estimated fair value of the 2030 Notes based on the closing trading price per $100, was $1,324 million and $1,247 million at December 31, 2025 and 2024, respectively.2030 NotesIn August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”). The 2030 Notes were issued at 99.63% of principal and we incurred $13 million for debt issuance costs. The effective interest rate for the 2030 Notes was 1.53% and included interest payable, amortization of debt issuance cost and amortization of debt discount. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021, and the entire outstanding principal amount is due at maturity on September 1, 2030. The 2030 Notes are unsecured obligations and the indentures governing the 2030 Notes contain customary events of default and covenants that, among others and subject to exceptions, restrict our ability to incur or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties.

Note: Business Combinations

Business Combinations2025 Business CombinationsMoveworks, Inc. On December 15, 2025, we acquired all outstanding shares of Moveworks, Inc. (“Moveworks”), a privately held company that provides enterprise search and front-end virtual agent technology. The acquisition is intended to drive use of our Platform to accelerate enterprise adoption and innovation across key growth areas, including CRM. The preliminary aggregate purchase price consideration for Moveworks was $2.4 billion, which was comprised of the following (in millions):Fair ValueFair value of common stock issued(1)$1,467 Cash905 Settlement of pre-existing loan31 Stock-based compensation awards attributable to pre-combination services4 Total purchase consideration$2,407 (1)The fair value of the stock consideration is based on the December 15, 2025 closing price of ServiceNow common stock at $153.04 and approximately 9.6 million shares of ServiceNow common stock.The allocation of the total purchase price is summarized below (in millions):Purchase PriceAllocationAsset LifeCurrent assets$48 Intangible assets770 2 - 5 yearsGoodwill1,748 IndefiniteOther assets124 Assets acquired$2,690 Current liabilities assumed83 Long-term liabilities assumed13 Deferred tax liabilities, non-current 187 Net assets acquired$2,407 Identifiable intangible assets acquired in connection with the Moveworks acquisition (in millions) and the weighted-average lives are as follows:IntangibleAssetsAsset Life (years)Developed technology$505 5Customer relationships220 5Order backlog25 2Brand assets20 4Total$770 Goodwill, which is not deductible for income tax purposes, is primarily attributed to the value expected from synergies resulting from the business combination. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The provisional measurements of fair value for certain assets and liabilities may be subject to change as additional information is received. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date.As contemplated by the terms of the merger agreement, in August 2025, the Company and Moveworks entered into a term loan credit agreement pursuant to which Moveworks drew $25 million. In December 2025, Moveworks drew an additional $5 million on the term loan credit agreement.

Note: Cybersecurity Risk Management a

Collaboration Our cybersecurity risks are identified and addressed through a comprehensive, cross-functional approach. Key security, risk, and compliance stakeholders meet regularly to develop strategies for preserving the confidentiality, integrity and availability of Company and customer information, identifying, preventing and mitigating cybersecurity threats, and effectively responding to cybersecurity incidents. We maintain controls and procedures that are designed to ensure prompt escalation of certain cybersecurity incidents so that decisions regarding public disclosure and reporting of such incidents can be made by management and the Board in a timely manner. Risk AssessmentAt least annually, we conduct a cybersecurity risk assessment that takes into account information from internal stakeholders, known information security vulnerabilities, and information from external sources (e.g., reported security incidents that have impacted other companies, industry trends, and evaluations by third parties and consultants). The results of the assessment are used to drive alignment on, and prioritization of, initiatives to enhance our security controls, make recommendations to improve processes, and inform a broader enterprise-level risk assessment that is presented to our Board, Audit Committee and members of management. Technical SafeguardsWe regularly assess and deploy technical safeguards designed to protect our information systems from cybersecurity threats. Such safeguards are regularly evaluated and improved based on vulnerability assessments, cybersecurity threat intelligence and incident response experience.Incident Response and Recovery PlanningWe have established comprehensive incident response and recovery plans and continue to regularly test and evaluate the effectiveness of those plans. Our incident response and recovery plans address — and guide our employees, management and the Board on — our response to a cybersecurity incident.Third-Party Risk ManagementWe have implemented controls designed to identify and mitigate cybersecurity threats associated with our use of third-party service providers. Such providers are subject to security risk assessments at the time of onboarding, contract renewal, and upon detection of an increase in risk profile. We use a variety of inputs in such risk assessments, including information supplied by providers and third parties.

Note: Cover

Portions of the registrant’s definitive proxy statement for its 2026 Annual Meeting of Stockholders (Proxy Statement) to be filed within 120 days of the registrant’s fiscal year ended December 31, 2025, are incorporated by reference in Part III of this Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K.

Note: Investments

InvestmentsMarketable SecuritiesThe following is a summary of our available-for-sale debt securities recorded within marketable securities and long-term marketable securities on the consolidated balance sheets (in millions): December 31, 2025AmortizedCostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair ValueAvailable-for-sale debt securities:Commercial paper$173 $— $— $173 Corporate notes and bonds4,759 34 — 4,793 Certificates of deposit11 — — 11 U.S. government and agency securities1,257 6 — 1,263 Mortgage-backed and asset-backed securities103 — (14)89 Total available-for-sale debt securities$6,303 $40 $(14)$6,329 December 31, 2024AmortizedCostGrossUnrealizedGainsGrossUnrealizedLossesEstimatedFair ValueAvailable-for-sale debt securities:Commercial paper$336 $— $— $336 Corporate notes and bonds4,966 15 (5)4,976 Certificates of deposit67 — — 67 U.S. government and agency securities2,103 3 (2)2,104 Mortgage-backed and asset-backed securities104 — (18)86 Total available-for-sale debt securities$7,576 $18 $(25)$7,569 As of December 31, 2025, the contractual maturities of our available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet and mortgage-backed and asset-backed securities that do not have a single maturity, did not exceed 37 months. The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions):December 31, 2025Due within 1 year$2,557 Due in 1 year through 5 years3,683 Instruments not due in single maturity89 Total$6,329 As of December 31, 2025 and 2024, unrealized losses of $14 million and $18 million, respectively, are from available-for-sale debt securities in a continuous unrealized loss position greater than 12 months. As of December 31, 2025, the fair value of available-for-sale debt securities in a continuous unrealized loss position totaled $171 million, the majority of which was in a continuous unrealized loss position for greater than 12 months. As of December 31, 2024, the fair value of available-for-sale debt securities in a continuous unrealized loss position totaled $2,419 million, the majority of which was in a continuous unrealized loss position for less than 12 months.For all available-for-sale debt securities that were in unrealized loss positions, we have determined that it is more likely than not we will hold the securities until maturity or a recovery of the cost basis.

Long notes are shortened. The full text is in the filing.

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