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ServiceNow NOW Free cash flow margin

Free cash flow margin at other companies

International Business Machines logo
International Business MachinesIBM
18.7%-1.3pp
Open Text logo
Open TextOTEX
15.4%+2.1pp
Pegasystems logo
PegasystemsPEGA
28.4%+4.1pp
Salesforce logo
SalesforceCRM
34.2%+1.5pp
Workday, Inc. logo
Workday, Inc.WDAY
30.2%+3.5pp
Oracle logo
OracleORCL
-35.2%-35.9pp

Other financials

Income statement

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Revenue$4.0B+24.0%
Gross profit$2.8B+13.1%
Operating income$162.0M-54.7%
Net income$298.0M-22.6%
EPS (diluted)$0.29-84.2%

Balance sheet

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Cash & equivalents$2.5B-19.7%
Total debt$8.5B+820%
Total equity$12.5B+14.5%
Total assets$31.7B+43.6%

Cash flow

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Operating cash flow$587.0M-18.0%
CapEx$114.0M-40.0%
Free cash flow$473.0M-10.1%

Valuation

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Market cap$122.14B-36.0%
Enterprise value$128.08B-32.1%
P/E73.1×-41.7×
P/S8.3×-7.5×

Profitability

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Gross margin74.8%-3.7pp
Operating margin11.4%-1.9pp
Net margin11.3%-2.4pp

Returns & leverage

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Return on equity14.2%-2.7pp
Debt / equity0.7×+0.6×
Current ratio0.7×-0.4×

Where this comes from

Calculated from ServiceNow’s reported figures.

Based on trailing twelve months.

The source filing: ServiceNow’s 10-Q, filed July 23, 2026. Open the filing →

Filed
Jul 22, 2026, 8:00 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001373715-26-000076

FAQ

What is ServiceNow's free cash flow margin?
ServiceNow (NOW) reported free cash flow margin of 31.1% in Q2 2026.
How has ServiceNow's free cash flow margin changed year-over-year?
ServiceNow's free cash flow margin decreased by 2.6% year-over-year, from 31.9% to 31.1%.
What is the long-term trend for ServiceNow's free cash flow margin?
Over 5 years (2020 to 2025), ServiceNow's free cash flow margin has grown at a 2.6% compound annual growth rate (CAGR), from 30.3% to 34.5%.
What does free cash flow margin mean?
Free cash flow (operating cash flow minus capital expenditures) as a percentage of revenue, trailing twelve months. Measures how efficiently revenue converts into discretionary cash.

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