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ServiceNow NOW EBITDA margin

EBITDA margin at other companies

International Business Machines logo
International Business MachinesIBM
25.6%+6.0pp
Salesforce logo
SalesforceCRM
29.2%+1.0pp
Workday, Inc. logo
Workday, Inc.WDAY
16.4%+5.4pp
Oracle logo
OracleORCL
43.3%+1.5pp
Atlassian logo
AtlassianTEAM
-1.7%+0.2pp
Accenture logo
AccentureACN
15.8%-0.8pp

Other financials

Income statement

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Revenue$3.8B+22.1%
Gross profit$2.8B+16.1%
Operating income$503.0M+11.5%
Net income$469.0M+2.0%
EPS (diluted)$0.45+2.3%

Balance sheet

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Cash & equivalents$2.7B-19.8%
Total debt$940.0M+3.4%
Total equity$11.7B+15.7%
Total assets$24.4B+16.3%

Cash flow

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Operating cash flow$1.7B-0.4%
CapEx$141.0M-31.2%
Free cash flow$1.5B+3.9%

Valuation

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Market cap$98.02B-33.5%
Enterprise value$96.25B-33.6%
P/E55.8×-40.0×
P/S-5.8×

Profitability

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Gross margin76.6%-2.4pp
Operating margin13.4%+0.5pp
Net margin12.6%-0.8pp
FCF margin33.2%+1.1pp

Returns & leverage

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Return on equity16.1%-0.8pp
Debt / equity0.1×0.0×
Current ratio0.8×-0.3×

Where this comes from

Calculated from ServiceNow’s reported figures.

Based on trailing twelve months.

The official record: ServiceNow’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is ServiceNow's EBITDA margin?
ServiceNow (NOW) reported EBITDA margin of 23.2% in Q1 2026.
How has ServiceNow's EBITDA margin changed year-over-year?
ServiceNow's EBITDA margin increased by 7.0% year-over-year, from 21.7% to 23.2%.
What is the long-term trend for ServiceNow's EBITDA margin?
Over 5 years (2020 to 2025), ServiceNow's EBITDA margin has grown at a 14.7% compound annual growth rate (CAGR), from 11.5% to 22.8%.
What does EBITDA margin mean?
Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.
How do you interpret EBITDA margin?
Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.
How does EBITDA margin compare across companies?
Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.