ServiceNow's Debt and Interest Costs Jump: Is Cash Flow Enough?

ServiceNow NOW is carrying a significantly higher debt and interest burden following its acquisition-led expansion, raising concerns about profitability and financial flexibility. Total debt climbed to $7.52 billion as of Sept. 30, 2026, from $1.49 billion at the end of 2025, comprising $5.44 billion in long-term borrowings and $2.09 billion in short-term debt. The increase largely reflects financing associated with the $7.6 billion Armis acquisition. In May, ServiceNow issued $4 billion of fixed-rate senior notes to refinance an acquisition-related term loan. It also had $2.1 billion of commercial paper outstanding, carrying a weighted-average interest rate of 4.05% and a remaining term of just 62 days, creating refinancing exposure.