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

	TTM Q1 '26	TTM Q4 '25	TTM Q3 '25	TTM Q2 '25	TTM Q1 '25
Profitability
Gross margin	76.6%-2.4pp	77.5%-1.6pp	78.1%-1.2pp	78.5%-0.5pp	78.9%+0.1pp
Operating margin	13.4%+0.5pp	13.7%+1.3pp	13.9%+1.8pp	13.3%+2.5pp	12.9%+2.9pp
Net margin	12.6%-0.8pp	13.2%+0.2pp	13.7%+0.9pp	13.8%+2.3pp	13.4%-6.9pp
EBITDA margin	23.2%+1.5pp	22.8%+1.6pp	22.8%+1.7pp	22%+2.0pp	21.7%+2.3pp
Free cash flow margin	33.2%+1.1pp	34.5%+3.4pp	31.2%-1.0pp	31.9%+1.0pp	32.1%-1.4pp
Returns
Return on equity	16.1%-0.8pp	15.5%-1.0pp	16.8%+0.6pp	17%+2.3pp	16.9%-11.3pp
Return on assets	7.7%-0.2pp	7.5%0.0pp	8.6%+0.6pp	8.3%+1.3pp	8%-4.4pp
Return on invested capital	20.1%-1.4pp	19.4%-0.4pp	19.8%+1.1pp	21%+2.6pp	21.5%-0.9pp
Efficiency
Asset turnover	0.6×0.0×	0.6×0.0×	0.6×0.0×	0.6×0.0×	0.6×0.0×
Liquidity
Current ratio	0.8×-0.3×	1×-0.1×	1.1×-0.1×	1.1×0.0×	1.1×+0.1×
Quick ratio	0.8×-0.3×	1×-0.1×	1.1×-0.1×	1.1×0.0×	1.1×+0.1×
Cash ratio	0.3×-0.1×	0.4×+0.1×	0.3×+0.1×	0.4×+0.1×	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×-0.1×	-0.8×-0.1×	-1×-0.3×
Per Share
Book value per share	$11.28+16.4%	$12.39+34.3%	$53.94+21.1%	$52.23+25.2%	$9.69-75.2%
Valuation
Market capitalization	$109.36B-33.5%	$159.07B-27.3%	$190.98B+3.8%	$206.39B+27.9%	$164.39B+5.1%
Enterprise value	$107.59B-33.6%	$156.25B-28.1%	$189.15B+3.5%	$204.18B+27.6%	$161.92B+4.4%
Price / earnings	62.2×-44.6×	91×-62.5×	110.3×-27.3×	124.3×-16.5×	106.9×+25.8×
Price / sales	7.8×-6.5×	12×-7.9×	15.1×-2.5×	17.1×+0.9×	14.3×-2.2×
Price / book	9.3×-6.9×	12.3×-10.5×	16.9×-2.9×	18.9×+0.3×	16.2×-3.1×
EV / EBITDA	33.2×-31.9×	51.7×-41.7×	65.6×-17.2×	76.8×-3.4×	65.2×-19.4×
EV / sales	7.7×-6.4×	11.8×-8.0×	14.9×-2.5×	16.9×+0.9×	14.1×-2.2×
Free cash flow yield	4.2%+2.0pp	2.9%+1.3pp	2.1%+0.2pp	1.9%0.0pp	2.2%+0.2pp
Earnings yield	1.6%+0.7pp	1.1%+0.4pp	0.9%+0.2pp	0.8%+0.1pp	0.9%-0.3pp
PEG ratio	4.4×—	——	——	——	——

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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.