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ServiceNow NOW Operating margin

Operating margin at other companies

Salesforce logo
SalesforceCRM
20.4%+1.1pp
Workday, Inc. logo
Workday, Inc.WDAY
10.3%+5.9pp
Oracle logo
OracleORCL
30.6%-0.4pp
Atlassian logo
AtlassianTEAM
-3.7%+0.3pp
Accenture logo
AccentureACN
14.5%-0.9pp
Cognizant logo
CognizantCTSH
15.8%+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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Gross margin76.6%-2.4pp
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 operating margin?
ServiceNow (NOW) reported operating margin of 13.4% in Q1 2026.
How has ServiceNow's operating margin changed year-over-year?
ServiceNow's operating margin increased by 3.9% year-over-year, from 12.9% to 13.4%.
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?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.