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ServiceNow NOW Gross margin

Gross margin at other companies

International Business Machines logo
International Business MachinesIBM
58.4%+1.3pp
Salesforce logo
SalesforceCRM
77.6%+0.3pp
Atlassian logo
AtlassianTEAM
84%+1.7pp
Accenture logo
AccentureACN
32%-0.1pp
Cognizant logo
CognizantCTSH
33.5%-0.7pp
Equifax logo
EquifaxEFX
56.1%+0.6pp

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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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 gross margin?
ServiceNow (NOW) reported gross margin of 76.6% in Q1 2026.
How has ServiceNow's gross margin changed year-over-year?
ServiceNow's gross margin decreased by 3.0% year-over-year, from 78.9% to 76.6%.
What is the long-term trend for ServiceNow's gross margin?
Over 5 years (2020 to 2025), ServiceNow's gross margin has grown at a -0.2% compound annual growth rate (CAGR), from 78.2% to 77.5%.
What does gross margin mean?
How much of every sales dollar is left after the direct cost of what was sold.
How do you interpret gross margin?
Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
How does gross margin compare across companies?
Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.