ServiceNow, Inc.NOW
ServiceNow, Inc. Financial Overview 2021–2025
ServiceNow ends FY2025 with a staggering $28.2 billion in Remaining Performance Obligations (RPO), a 27% increase that effectively locks in years of future revenue. This backlog underscores the company’s successful evolution from a backend IT tool to an essential AI-driven enterprise platform, evidenced by a consistent 98% renewal rate. The financial arc confirms this dominance, as total revenue nearly doubled from $5.9 billion in FY2021 to $10.98 billion in FY2024, fueled by deep penetration into the Fortune 500.
Operational efficiency is accelerating alongside scale, with free cash flow jumping 34% to $4.6 billion in FY2025. Management is deploying this liquidity aggressively, funding the $2.4 billion acquisition of Moveworks and authorizing a $5.0 billion buyback in January 2026. High-value adoption is surging, with the count of clients paying over $5 million annually growing 20% to 603. Investors priced this execution at a premium, valuing the company at 91.7x earnings with a split-adjusted price of $153.19 at the close of FY2025.
Recent Developments (Q3 and Q4 2025)
ServiceNow executed a 5-for-1 stock split effective December 17, 2025, broadening investor access following robust interim performance. During Q3 2025, the company generated $3.41 billion in revenue, a 22% increase, while income from operations expanded 37%, outpacing top-line growth. The company also bolstered its CPQ capabilities by closing the $506 million acquisition of Logik.io in late 2025.
Strategic continuity was reinforced in December 2025 when CEO William McDermott committed to lead the firm through 2030. Further signaling confidence, executive leadership cancelled scheduled stock sales in February 2026, with McDermott pledging a $3 million open-market purchase. The bull case centers on this high-conviction insider alignment and sustained subscription momentum, whereas the bear case warns that the stock remains priced for perfection at 69.9x earnings as of January 28, 2026.
What to watch: Integration progress of the Logik.io and Moveworks units; execution speed of the newly authorized share repurchase program.
Rev
$13.28B
FY2025
NI
$1.75B
FY2025
EPS
$1.69
FY2025
OCF
$5.44B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
ServiceNow, Inc. 8-K Report, Regulation FD Disclosure (Feb 17, 2026)
ServiceNow, Inc. (NOW) announced a significant shift in executive trading plans. Key members of the leadership team, including CEO William R. McDermott, CFO Gina Mastantuono, and others, have terminated their pre-arranged stock trading plans. This decision means that all future planned sales of ServiceNow common stock by these executives are cancelled. This action signals a strong commitment from the leadership to the company's future prospects and may be interpreted as a positive sign by investors, suggesting confidence in sustained value growth. Furthermore, CEO William R. McDermott has entered into an agreement to purchase $3 million of ServiceNow common stock on February 27, 2026, at prevailing market prices. This proactive purchase, timed to avoid short-swing profit liability, demonstrates a personal financial investment in the company's stock by its top executive. This move, coupled with the cancellation of sales plans, collectively conveys a message of strong executive confidence and a focus on long-term value creation.
ServiceNow, Inc. 8-K Report, Executive Changes (Feb 11, 2026)
ServiceNow, Inc. has announced a significant change in its accounting leadership. Danielle Fontaine has been appointed as the new Chief Accounting Officer and Corporate Controller, effective February 17, 2026. This appointment marks a promotion for Ms. Fontaine, who has been with the company as Assistant Controller since September 2021. Her extensive background includes prior roles at Alphabet, Inc., the Financial Accounting Standards Board, Gap, Inc., and Ernst & Young, LLP, providing her with a strong foundation in accounting and financial oversight. Concurrently, Kevin McBride, the outgoing Chief Accounting Officer, will transition to a new role as Executive Vice President, Accounting and Corporate Services, taking on expanded responsibilities. This internal promotion indicates a focus on retaining experienced talent and leveraging their expertise in new capacities. Investors should note Ms. Fontaine's compensation package, which includes a base salary of $420,000, a target annual bonus of 40%, and a substantial $1.25 million restricted stock unit award vesting over four years. This appointment, along with the internal reshuffling, suggests a continued emphasis on robust financial controls and management within ServiceNow.
ServiceNow, Inc. 8-K Report, Financial Results (Jan 28, 2026)
ServiceNow, Inc. (NOW) has filed an 8-K reporting on their fourth-quarter and full-year 2025 financial results, released on January 28, 2026. The filing indicates strong financial performance and a commitment to returning capital to shareholders. The company announced an expanded share repurchase program, authorizing an additional $5.0 billion in buybacks, which supplements the existing $1.4 billion remaining capacity. This move underscores management's confidence in the company's financial health and its stock valuation. Investors should note that the detailed financial results are provided in a press release (Exhibit 99.1) furnished with this 8-K, rather than being fully detailed within the 8-K itself. This press release covers the three months and the full year ended December 31, 2025. The expanded share repurchase authorization, without a fixed expiration date, provides flexibility for ServiceNow to manage its capital structure and enhance shareholder value over time, subject to market conditions and business considerations.
ServiceNow, Inc. 8-K Report, Executive Changes (Dec 23, 2025)
ServiceNow, Inc. (NOW) has filed an 8-K report detailing significant amendments to the employment agreement and severance policy for its Chairman and CEO, William R. McDermott. Effective January 1, 2026, Mr. McDermott has committed to remaining with the company through at least December 31, 2030, serving in roles such as CEO, co-CEO, or Chairman, at the Board's discretion. This commitment provides leadership stability for the long term. The company has also updated its Executive Severance Policy. This policy now outlines specific severance benefits for the CEO upon a "Qualifying Termination," with enhanced provisions if such termination occurs in connection with a Change in Control. Key changes include updated multiples for base salary and target bonus, extended COBRA coverage, and accelerated vesting of both Restricted Stock Units (RSUs) and Performance-Based Restricted Stock Units (PRSUs). Special provisions for retirement, death, and disability are also detailed, aiming to provide security and continuity for senior leadership.
ServiceNow, Inc. 8-K Report, Corporate Update (Dec 15, 2025)
ServiceNow, Inc. (NOW) has filed an 8-K report detailing a significant event related to the resale of common stock. The company has filed a prospectus supplement to its Form S-3ASR registration statement, which permits certain stockholders to sell shares acquired in connection with the acquisition of Moveworks, Inc. This filing indicates that these previously restricted shares are now eligible for public sale, which could introduce new supply into the market. Investors should monitor potential impacts on the stock price due to this increased availability of shares. The primary focus of this 8-K is procedural, relating to the registration of shares for resale rather than a new issuance or a change in the company's operational or financial performance. The legal opinion from Skadden, Arps, Slate, Meagher & Flom LLP, included as an exhibit, confirms the validity of these shares. Investors should understand that this event itself does not signal a change in ServiceNow's business prospects but rather facilitates liquidity for specific shareholders.
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