What are ServiceNow's profit margins?

ServiceNow (NOW) runs a 76.6% gross margin and a 13.4% operating margin, with a 12.6% net margin.

Where do ServiceNow's ratios come from?

Every ratio is computed from ServiceNow's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.

ServiceNow NOW Ratios & Valuation

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY QoQ

Simplified Detailed

	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25
Profitability
Gross margin	76.6%-1.0pp	77.5%-0.5pp	78.1%-0.5pp	78.5%-0.4pp	78.9%-0.3pp
Operating margin	13.4%-0.3pp	13.7%-0.1pp	13.9%+0.6pp	13.3%+0.3pp	12.9%+0.5pp
Net margin	12.6%-0.6pp	13.2%-0.5pp	13.7%-0.1pp	13.8%+0.4pp	13.4%+0.4pp
EBITDA margin	23.2%+0.4pp	22.8%0.0pp	22.8%+0.7pp	22%+0.4pp	21.7%+0.5pp
Free cash flow margin	33.2%-1.3pp	34.5%+3.2pp	31.2%-0.7pp	31.9%-0.2pp	32.1%+1.0pp
Returns
Return on equity	16.1%+0.6pp	15.5%-1.3pp	16.8%-0.1pp	17%+0.1pp	16.9%+0.3pp
Return on assets	7.7%+0.2pp	7.5%-1.1pp	8.6%+0.4pp	8.3%+0.3pp	8%+0.4pp
Return on invested capital	20.1%+0.8pp	19.4%-0.5pp	19.8%-1.2pp	21%-0.5pp	21.5%+1.7pp
Efficiency
Asset turnover	0.6×0.0×	0.6×-0.1×	0.6×0.0×	0.6×0.0×	0.6×0.0×
Liquidity
Current ratio	0.8×-0.2×	1×-0.1×	1.1×0.0×	1.1×0.0×	1.1×0.0×
Quick ratio	0.8×-0.2×	1×-0.1×	1.1×0.0×	1.1×0.0×	1.1×0.0×
Cash ratio	0.3×-0.1×	0.4×0.0×	0.3×0.0×	0.4×0.0×	0.4×+0.1×
Leverage
Debt-to-equity	0.1×0.0×	0.1×0.0×	0.1×0.0×	0.1×0.0×	0.1×0.0×
Debt-to-assets	0×0.0×	0×0.0×	0×0.0×	0×0.0×	0×0.0×
Net debt / EBITDA	-0.5×+0.4×	-0.9×-0.3×	-0.6×+0.2×	-0.8×+0.2×	-1×-0.3×
Per Share
Book value per share	$11.28-8.9%	$12.39-77.0%	$53.94+3.3%	$52.23+439%	$9.69+5.0%
Valuation
Market capitalization	$109.36B-31.3%	$159.07B-16.7%	$190.98B-7.5%	$206.39B+25.5%	$164.39B-24.8%
Enterprise value	$107.59B-31.1%	$156.25B-17.4%	$189.15B-7.4%	$204.18B+26.1%	$161.92B-25.4%
Price / earnings	62.2×-28.8×	91×-19.3×	110.3×-13.9×	124.3×+17.4×	106.9×-46.6×
Price / sales	7.8×-4.1×	12×-3.1×	15.1×-2.0×	17.1×+2.8×	14.3×-5.6×
Price / book	9.3×-2.9×	12.3×-4.6×	16.9×-2.0×	18.9×+2.7×	16.2×-6.5×
EV / EBITDA	33.2×-18.5×	51.7×-13.8×	65.6×-11.3×	76.8×+11.7×	65.2×-28.3×
EV / sales	7.7×-4.1×	11.8×-3.2×	14.9×-2.0×	16.9×+2.8×	14.1×-5.7×
Free cash flow yield	4.2%+1.4pp	2.9%+0.8pp	2.1%+0.2pp	1.9%-0.4pp	2.2%+0.7pp
Earnings yield	1.6%+0.5pp	1.1%+0.2pp	0.9%+0.1pp	0.8%-0.1pp	0.9%+0.3pp
PEG ratio	4.4×+0.4×	4×+0.3×	3.7×+1.0×	2.8×—	——

Chart any of these lines over time, or line them up against competitors.

Compare these in charts →

Ask your AI about ServiceNow.

Connect your AI assistant and get a quick read on the numbers, right in your chat.

Connect your AI

Claude

Questions, answered.

What are ServiceNow's profit margins?: ServiceNow (NOW) runs a 76.6% gross margin and a 13.4% operating margin, with a 12.6% net margin.
Where do ServiceNow's ratios come from?: Every ratio is computed from ServiceNow's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.