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ServiceNow NOW Operating margin

Operating margin at other companies

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Open TextOTEX
20.6%+3.4pp
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PegasystemsPEGA
9.9%-6.5pp
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SalesforceCRM
20.4%+1.1pp
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Workday, Inc.WDAY
10.3%+5.9pp
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OracleORCL
30.6%-0.2pp
Appian Corporation logo
Appian CorporationAPPN
0.2%+0.1pp

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
Net margin11.3%-2.4pp
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 operating margin?
ServiceNow (NOW) reported operating margin of 11.4% in Q2 2026.
How has ServiceNow's operating margin changed year-over-year?
ServiceNow's operating margin decreased by 14.1% year-over-year, from 13.3% to 11.4%.
What is the long-term trend for ServiceNow's operating margin?
Over 5 years (2020 to 2025), ServiceNow's operating margin has grown at a 25.6% compound annual growth rate (CAGR), from 4.4% to 13.7%.
What does operating margin mean?
Operating income as a percentage of revenue (trailing twelve months). Captures profitability from core operations after both cost of revenue and operating expenses, but before interest and taxes.

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