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ServiceNow NOW Net margin

Net margin at other companies

International Business Machines logo
International Business MachinesIBM
15.6%+6.9pp
Salesforce logo
SalesforceCRM
18.7%+2.7pp
Workday, Inc. logo
Workday, Inc.WDAY
8.6%+3.0pp
Oracle logo
OracleORCL
25.3%+3.5pp
Atlassian logo
AtlassianTEAM
-3.5%-1.3pp
Accenture logo
AccentureACN
10.7%-1.0pp

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
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 net margin?
ServiceNow (NOW) reported net margin of 12.6% in Q1 2026.
How has ServiceNow's net margin changed year-over-year?
ServiceNow's net margin decreased by 6.1% year-over-year, from 13.4% to 12.6%.
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 38.0% compound annual growth rate (CAGR), from 2.6% to 13.2%.
What does net margin mean?
The share of every sales dollar that becomes bottom-line profit.
How do you interpret net margin?
Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.
How does net margin compare across companies?
Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.