Q3 FY26 · Ended Sep 30, 2026 · View SEC filing
Delivery costs are outrunning subscription growth
Cost of revenue grew far faster than sales, as cloud hosting and acquired-technology charges pulled gross margin down 6.8 points.
For investorsWhich margin pressures fade, and which grow with every customer?
For foundersBuy or build: where an acquired product line really costs you
Customers pay up front for contracts they cannot cancel, and acquisition charges cut profit without touching cash.
Interest on the borrowing behind the Armis purchase now exceeds interest earned on cash, a new cost below operating profit.
Contract value renews at 98%, and signed but unrecognized revenue is more than double last year's sales.
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Business Lens describes ServiceNow from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.
