ServiceNow spent $9.17 billion on seven acquisitions in nine months, its quarterly filing shows.
The software company's third-quarter filing shows it moved from net cash of about $8.56 billion at the end of 2025 to net debt of about $563 million by 30 September, Calcalist's CTech reported on Sunday.
Two deals account for most of it: the roughly $7.6 billion purchase of cybersecurity company Armis in April and about $1.2 billion for identity firm Veza in March. Five unnamed acquisitions added $612 million, the filing shows.
ServiceNow financed the deals with a $4 billion term loan, repaid from a $4 billion bond issue, and had $2.1 billion of commercial paper outstanding at the end of September. Interest expense rose to $81 million in the quarter from $6 million a year earlier.
Subscription revenue grew 21% to $3.99 billion, while the cost of delivering it rose 58% to $1.054 billion. Subscription gross margin fell to 73.5% from 80%; the company expects a full-year decline, citing third-party cloud costs and amortisation of acquired assets.
Our reading: ServiceNow still holds about $7 billion of cash and securities against $7.5 billion of debt. Whether the acquisitions justify their price will show in the revenue and cash flow they bring in, not in the subscription margin alone.
Sources
Our file on ServiceNow
- 13 Nov
ServiceNow released AI it says moves firms off rival sales software in weeks. It named no price or customer that switched.
- 29 Oct
ServiceNow said net new AI contract value rose 65%. Its shares still fell 18% after hours, on a weaker sales forecast.
- 28 Oct
EY says brewer Lion's HR costs fell about 30% after a ServiceNow redo. Lion already had the software but used it little.
- 23 Oct
BT says AI tools cut a 14-week bid to three minutes. Its business chief calls agents without a human "a huge decision".
- 20 Oct
Salesforce said at least 20,000 workers changed roles. It cited an AI redesign.
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