Analysis of Geographic Areas
ServiceNow Inc. operates in 3 regions: North America; Europe, the Middle East and Africa (EMEA); and Asia Pacific and other.
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
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- Net Profit Margin since 2012
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Area Asset Turnover
ServiceNow Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other |
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).
Asset turnover ratios for the examined geographic areas demonstrate varying performance trends between 2021 and 2025. North America exhibits a consistent, albeit gradual, decline, while EMEA follows a similar downward trajectory. Asia Pacific and other regions display more volatility, with an initial decrease followed by an increase and subsequent leveling off.
- North America
- The asset turnover ratio in North America decreased steadily from 7.75 in 2021 to 5.81 in 2025. This represents a cumulative decline of approximately 25.1% over the five-year period. The rate of decline appears to be slowing, with smaller decreases observed in the later years of the period.
- Europe, the Middle East and Africa (EMEA)
- EMEA’s asset turnover ratio also experienced a consistent decline, moving from 8.81 in 2021 to 6.04 in 2025. This represents a decrease of roughly 31.4% over the five years. Similar to North America, the pace of decline appears to moderate towards the end of the period.
- Asia Pacific and other
- The asset turnover ratio for Asia Pacific and other regions showed a more complex pattern. It decreased from 5.59 in 2021 to a low of 4.43 in 2022, then increased to 6.50 in 2023 before settling at 5.29 in 2025. While the 2025 value is slightly lower than the 2021 value, the region demonstrated a period of improved asset utilization in 2023.
Overall, the observed declines in North America and EMEA suggest a potential decrease in the efficiency with which assets are being used to generate revenue in those regions. The fluctuating performance in Asia Pacific and other regions warrants further investigation to understand the drivers behind the initial decline and subsequent recovery.
Area Asset Turnover: North America
ServiceNow Inc.; North America; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
Analysis of the provided financial information reveals trends in revenue, property and equipment, and area asset turnover within North America over a five-year period. Revenues demonstrate consistent growth, while property and equipment also increase, though at a slower relative pace. Consequently, area asset turnover exhibits a declining trend.
- Revenues
- Revenues increased steadily from US$3,752 million in 2021 to US$8,348 million in 2025. This represents a substantial overall increase, indicating strong sales performance within the North American market. The growth rate appears relatively consistent year-over-year.
- Property and Equipment, Net
- Property and equipment, net, also increased over the period, rising from US$484 million in 2021 to US$1,437 million in 2025. However, the rate of increase in property and equipment is less pronounced than that of revenues. This suggests that the company is not expanding its fixed assets at the same rate as its sales are growing.
- Area Asset Turnover
- Area asset turnover decreased from 7.75 in 2021 to 5.81 in 2025. This decline indicates that the company is generating less revenue for each dollar of property and equipment invested in the North American area. The decrease in asset turnover aligns with the observed pattern of revenue growth outpacing the growth in property and equipment. While revenue is increasing, the efficiency with which assets are used to generate that revenue is diminishing.
The observed trend in area asset turnover warrants further investigation. Potential factors contributing to this decline could include increased investment in less productive assets, a shift in business strategy requiring more capital investment, or a change in the composition of assets. Continued monitoring of this ratio is recommended to assess its potential impact on overall profitability and efficiency.
Area Asset Turnover: Europe, the Middle East and Africa (EMEA)
ServiceNow Inc.; Europe, the Middle East and Africa (EMEA); area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
Analysis of the financial information reveals a consistent decline in area asset turnover for the observed period. While revenues have increased steadily, the growth in property and equipment, net, has outpaced revenue growth, resulting in decreasing efficiency in asset utilization within the EMEA region.
- Revenues
- Revenues demonstrate a positive trend, increasing from US$1,551 million in 2021 to US$3,402 million in 2025. This represents a substantial overall increase, indicating growing market presence and sales performance within the EMEA region.
- Property and Equipment, Net
- Property and equipment, net, have also increased over the period, rising from US$176 million in 2021 to US$563 million in 2025. The rate of increase in property and equipment, net, appears to be accelerating, particularly between 2023 and 2025.
- Area Asset Turnover
- The area asset turnover ratio has decreased consistently from 8.81 in 2021 to 6.04 in 2025. This indicates a diminishing ability to generate revenue from the existing asset base. The decline suggests that the company is becoming less efficient in utilizing its property and equipment to generate sales within the EMEA region. The decrease is not precipitous, but the consistent downward trend warrants further investigation to understand the underlying causes, such as potential overinvestment in assets or slower revenue growth relative to asset expansion.
The combination of increasing revenues and decreasing asset turnover suggests a potential need to evaluate capital expenditure strategies and asset management practices within the EMEA region. Further analysis should focus on identifying the drivers behind the increasing asset base and assessing whether these investments are translating into proportional revenue gains.
Area Asset Turnover: Asia Pacific and other
ServiceNow Inc.; Asia Pacific and other; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
The financial performance indicators reveal fluctuating trends in revenue generation and asset utilization within the specified period. Revenues demonstrate consistent growth, while property and equipment, net, exhibit a more moderate increase, with a notable acceleration in the later years. The area asset turnover ratio, a measure of efficiency in utilizing assets to generate sales, shows variability over the five-year span.
- Revenues
- Revenues increased steadily from US$593 million in 2021 to US$1,528 million in 2025. The growth rate appears to be accelerating, with larger absolute increases observed in the later years of the period. This suggests a strengthening market position or successful expansion initiatives.
- Property and Equipment, Net
- Property and equipment, net, increased from US$106 million in 2021 to US$289 million in 2025. The increase was relatively modest between 2021 and 2023, but accelerated significantly between 2023 and 2025. This could indicate increased investment in fixed assets to support revenue growth, particularly in the latter part of the period.
- Area Asset Turnover
- The area asset turnover ratio began at 5.59 in 2021, decreased to 4.43 in 2022, and then recovered to 5.55 in 2023. A further increase to 6.50 was observed in 2024, followed by a slight decline to 5.29 in 2025. The initial decrease in 2022 may be attributable to the increase in property and equipment outpacing revenue growth. The subsequent increases in 2023 and 2024 suggest improved efficiency in asset utilization, while the 2025 decrease warrants further investigation to determine if it signals a potential emerging trend.
Overall, the area demonstrates revenue growth alongside increasing investment in property and equipment. The asset turnover ratio indicates a generally efficient use of assets, although fluctuations suggest potential areas for further analysis and optimization. The acceleration in both revenue and property and equipment in the later years of the period suggests a period of significant expansion and investment.
Revenues
ServiceNow Inc., revenues by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other | |||||
| Total |
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).
Revenue performance demonstrates consistent growth across all reported geographic areas between 2021 and 2025. North America represents the largest revenue contributor, and exhibits the most substantial absolute growth, while Asia Pacific and other demonstrates the highest percentage growth rate. The overall trend indicates increasing global revenue diversification, though North America remains dominant.
- North America
- Revenue from North America increased steadily from US$3,752 million in 2021 to US$8,348 million in 2025. This represents a cumulative growth of 122.4% over the five-year period. Growth rates appear relatively consistent year-over-year, indicating sustained demand within this region.
- Europe, the Middle East and Africa (EMEA)
- EMEA revenue grew from US$1,551 million in 2021 to US$3,402 million in 2025, representing a cumulative growth of 119.4%. While substantial, the absolute increase is less than that of North America. Growth appears to have accelerated slightly in the later years of the period.
- Asia Pacific and other
- Revenue from Asia Pacific and other regions increased from US$593 million in 2021 to US$1,528 million in 2025, a cumulative growth of 157.7%. This represents the highest percentage growth among the three geographic areas. Although starting from a smaller base, this region’s growth suggests increasing market penetration and opportunity.
- Total Revenue
- Total revenue increased from US$5,896 million in 2021 to US$13,278 million in 2025, a cumulative growth of 125.4%. The consistent growth in total revenue is driven by positive performance in all geographic areas. The rate of growth appears to be accelerating, particularly between 2023 and 2025.
The relative contribution of each region to total revenue remains broadly consistent over the period. North America consistently accounts for the majority of revenue, followed by EMEA and then Asia Pacific and other. However, the increasing revenue from Asia Pacific and other suggests a gradual shift in the geographic distribution of revenue over time.
Property and equipment, net
ServiceNow Inc., property and equipment, net by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| North America | |||||
| Europe, the Middle East and Africa (EMEA) | |||||
| Asia Pacific and other | |||||
| Total |
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).
Property and equipment, net, exhibited consistent growth across all reported geographic regions between December 31, 2021, and December 31, 2025. North America consistently represents the largest portion of the total, followed by EMEA, and then Asia Pacific and other. The rate of growth, however, varies significantly by region.
- North America
- This region demonstrates a strong and steady increase in property and equipment, net, rising from US$484 million in 2021 to US$1,437 million in 2025. The growth appears relatively linear, suggesting consistent investment in this region. The increase between 2023 and 2024 is particularly notable, representing a substantial portion of the overall growth.
- Europe, the Middle East and Africa (EMEA)
- EMEA also shows consistent growth, increasing from US$176 million in 2021 to US$563 million in 2025. While the absolute increase is smaller than that of North America, the percentage growth is substantial. The rate of increase appears to accelerate over the period, with larger year-over-year gains in the later years.
- Asia Pacific and other
- This region exhibits the slowest rate of growth among the three. While increasing from US$106 million in 2021 to US$289 million in 2025, the growth is less pronounced than in North America or EMEA. Growth was relatively flat between 2022 and 2023, before accelerating in 2024 and 2025. This suggests potentially more recent or planned investment in this area.
- Total
- The total property and equipment, net, increased from US$766 million in 2021 to US$2,289 million in 2025, demonstrating a cumulative increase of approximately 200%. This overall growth is driven primarily by the increases in North America and EMEA, with Asia Pacific and other contributing a smaller, but growing, portion.
The consistent growth across all regions suggests a sustained period of investment in property and equipment. The differing rates of growth may reflect varying strategic priorities and investment opportunities within each geographic area.