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ServiceNow NOW Net margin

Net margin at other companies

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15.6%+6.9pp
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12.3%+3.8pp
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18.7%+5.5pp
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SalesforceCRM
18.7%+2.7pp
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Workday, Inc.WDAY
8.6%+3.0pp
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OracleORCL
25.4%+3.7pp

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$121.19B-36.0%
Enterprise value$127.13B-32.1%
P/E72.6×-41.4×
P/S8.2×-7.5×

Profitability

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Gross margin74.8%-3.7pp
Operating margin11.4%-1.9pp
FCF margin31.1%-0.8pp

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 net margin?
ServiceNow (NOW) reported net margin of 11.3% in Q2 2026.
How has ServiceNow's net margin changed year-over-year?
ServiceNow's net margin decreased by 17.7% year-over-year, from 13.8% to 11.3%.
What is the long-term trend for ServiceNow's net margin?
Over 5 years (2020 to 2025), ServiceNow's net margin has grown at a 38.1% compound annual growth rate (CAGR), from 2.6% to 13.2%.
What does net margin mean?
Net income as a percentage of revenue (trailing twelve months). The bottom-line profitability measure after all costs, interest, and taxes.

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