NOW changes
Pick any two versions below to diff them.
- Balance sheet
- ServiceNow had almost no debt until April 2026. Then it paid about $7.6 billion in cash for Armis and used a $4.0 billion term loan for part of the price. In May 2026, it repaid the loan with $4.0 billion of fixed-rate unsecured notes due from 2028 to 2056. At June 30, 2026, debt was $7.5 billion. Of this, $5.5 billion was fixed-rate notes, including $1.5 billion of 1.40% notes due 2030. The other $2.1 billion was commercial paper with an average remaining term of 81 days, so this part must roll over at short-term rates. Cash and marketable securities were $6.7 billion: $2.5 billion of cash, $2.2 billion of short-term securities and $2.0 billion of long-term securities. Net debt was only about $0.8 billion. This is small against EBITDA of about $3.5 billion and free cash flow of about $4.6 billion in the 12 months to June 2026. Customers pay subscriptions in advance, so deferred revenue of $8.2 billion is the largest liability. This helps cash flow, but it is not debt. The $3.0 billion revolving credit facility to April 2031 was undrawn. The May 2026 bond documents showed ratings of A2 at Moody's and A at S&P. Goodwill and intangible assets rose to $13.6 billion after the purchases. The low net debt leaves room to keep buying back shares: $2.2 billion in the first half of 2026, with $4.2 billion of authorization left. As of 2026-06-30.
- Checkpoints
- Oct 28, 2026 (estimate): Q3 2026 results: subscription growth and cRPO. Pending. Watch: Subscription revenue growth near 20% and cRPO at or above guidance pass; growth that slows clearly below 20% or a cRPO miss fails. Jan 2027 (estimate): Q4 2026 results and 2027 subscription guidance. Pending. Watch: 2027 subscription guidance near 20% growth with rising AI contract value passes; lower guidance tied to fewer seats fails.