Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Paying user area
Try for free
ServiceNow Inc. pages available for free this week:
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2012
- Current Ratio since 2012
- Price to Operating Profit (P/OP) since 2012
- Price to Book Value (P/BV) since 2012
- Price to Sales (P/S) since 2012
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to ServiceNow Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
ServiceNow Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The income statement reveals a consistent pattern of growth in revenue and profitability over the five-year period. Subscription revenue demonstrates the strongest growth trajectory, consistently increasing year-over-year and becoming the primary driver of overall revenue expansion. While professional services and other revenue also increased, its growth rate was less pronounced than that of subscription revenue.
- Revenue Growth
- Total revenues increased steadily from US$5,896 million in 2021 to US$13,278 million in 2025, representing a significant compound annual growth rate. The acceleration in revenue growth is particularly noticeable from 2023 onwards.
- Cost of Revenues and Gross Profit
- Cost of revenues increased in absolute terms each year, mirroring the growth in revenues. However, the rate of increase in cost of revenues was lower than the rate of revenue growth, resulting in expanding gross profit margins. Gross profit rose from US$4,543 million in 2021 to US$10,295 million in 2025.
- Operating Expenses
- Operating expenses, encompassing sales and marketing, research and development, and general and administrative expenses, all increased consistently throughout the period. Sales and marketing expenses represent the largest component of operating expenses, and their growth aligns with the company’s revenue expansion efforts. While increasing, the growth rate of operating expenses appears to be managed, as evidenced by the improvement in income from operations.
- Profitability
- Income from operations exhibited substantial growth, moving from US$257 million in 2021 to US$1,824 million in 2025. This improvement is attributable to the faster growth of revenues relative to operating expenses. Net income followed a similar trend, increasing from US$230 million to US$1,748 million over the same period. However, net income experienced a slight decrease in 2024 compared to 2023, primarily due to a significant increase in income tax expense.
- Non-Operating Items
- Interest income increased substantially over the period, contributing positively to income before income taxes. Interest expense remained relatively stable. Other expense, net, fluctuated, but generally remained a minor deduction from income. The provision for income taxes showed considerable volatility, shifting from a benefit in earlier years to a substantial expense in 2024 and 2025.
In summary, the financial performance demonstrates strong growth, improving profitability, and effective management of operating expenses. The increasing contribution from subscription revenue and growing interest income are key drivers of this positive trend. The volatility in income tax provision warrants further investigation.