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▼ FY 2025 Summary Analysis
Annual report ending Dec 31, 2025Overview and Growth
Fiscal 2025 results for ServiceNow, Inc. combined $13.28B of revenue with net income of $1.75B and an operating cash inflow of $5.44B. The $13.28B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 20.9% above fiscal 2024 revenue of $10.98B, marking a year-over-year increase. On a per-share basis, diluted EPS was $1.67, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $1.37 in fiscal 2024, the current result was 21.9% higher. Asset turnover was 0.51x, relating the company’s annual revenue directly to the total assets reported at the period end.Profitability
Gross profit was $10.29B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 77.5% of revenue, showing how much of the top line remained after direct costs. The reported operating result was $1.82B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 13.7%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $1.75B for the fiscal year. Measured against reported revenue, net income produced a 13.2% margin after operating costs and the remaining recognized items. Pretax income was $2.26B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 17.0%, relating income before taxes directly to revenue. Income tax expense totaled $513.00M, providing the reported tax component that separates pretax and after-tax earnings. The effective relationship between income tax and positive pretax income was 22.7%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 13.5%, indicating the profitability achieved on book capital. Net income represented 6.7% of period-end assets, placing the company’s bottom-line result against the total resource base employed.Liquidity and Capital Structure
At period end, the $26.04B asset base was financed through $13.07B of liabilities and $12.96B of equity. The near-term balance sheet paired $10.47B of current assets with $10.44B of current liabilities at the reporting date. At 1.0x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $3.73B, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 35.7% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 50.2% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 14.3%, comparing reported cash and equivalents with the full positive asset balance. Compared with $20.38B in fiscal 2024, the current asset base moved 27.7% and finished higher. Reported equity changed 34.9% from $9.61B in fiscal 2024, placing the current capital base higher year over year.Cash Flow and Earnings Quality
Operating activities produced a cash inflow of $5.44B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 3.11x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $868.00M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 15.9%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $4.58B, leaving cash available for debt reduction, shareholder returns, or further investment. The free-cash-flow margin was 34.5%, measuring cash remaining after capital spending against revenue. Free cash flow equaled 17.6% of total assets, relating post-investment cash generation to the company’s resource base.
Based on the annual report for the fiscal year ending Dec 31, 2025.
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