Cost Insights: Breaking Down Broadcom Inc. and ServiceNow, Inc.'s Expenses

Cost Insights: A Comparative Analysis of Broadcom Inc. and ServiceNow, Inc.

In the ever-evolving tech industry, understanding cost structures is crucial for investors and analysts alike. Broadcom Inc. and ServiceNow, Inc., two giants in their respective fields, offer a fascinating study in contrasts. Over the past decade, Broadcom's cost of revenue has surged by approximately 700%, reflecting its aggressive expansion and acquisition strategy. In contrast, ServiceNow, Inc. has seen a more modest increase of around 800%, indicative of its steady growth in the cloud computing sector.

From 2014 to 2024, Broadcom's cost of revenue consistently outpaced ServiceNow's, peaking in 2024 with a staggering 1.9 times increase from 2023. Meanwhile, ServiceNow's costs have grown steadily, reaching their highest in 2024. This data not only highlights the differing business models but also underscores the dynamic nature of the tech industry, where strategic investments and operational efficiencies play pivotal roles.