Who Optimizes SG&A Costs Better? ServiceNow, Inc. or ON Semiconductor Corporation

Optimizing SG&A: A Tale of Two Giants

In the competitive landscape of technology and semiconductor industries, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, ServiceNow, Inc. and ON Semiconductor Corporation have showcased contrasting strategies in optimizing these costs. From 2014 to 2023, ServiceNow's SG&A expenses surged by nearly 850%, reflecting its aggressive growth and expansion strategy. In contrast, ON Semiconductor's expenses grew by approximately 68%, indicating a more conservative approach.

ServiceNow's rapid increase in SG&A, peaking at $4.16 billion in 2023, underscores its commitment to scaling operations and capturing market share. Meanwhile, ON Semiconductor's steadier rise to $641 million suggests a focus on efficiency and cost control. This divergence highlights the strategic choices companies make in balancing growth with operational efficiency. As investors and analysts evaluate these giants, understanding their SG&A trends offers valuable insights into their long-term strategies.