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ServiceNow NOW Return on invested capital

Return on invested capital at other companies

International Business Machines logo
International Business MachinesIBM
13.2%+4.1pp
Open Text logo
Open TextOTEX
8.8%-0.6pp
Pegasystems logo
PegasystemsPEGA
36.7%-17.9pp
Salesforce logo
SalesforceCRM
10.5%+0.8pp
Workday, Inc. logo
Workday, Inc.WDAY
8%+3.3pp
Oracle logo
OracleORCL
14.6%-1.5pp

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$121.19B-36.0%
Enterprise value$127.13B-32.1%
P/E72.6×-41.4×
P/S8.2×-7.5×

Profitability

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Gross margin74.8%-3.7pp
Operating margin11.4%-1.9pp
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 return on invested capital?
ServiceNow (NOW) reported return on invested capital of 8.8% in Q2 2026.
How has ServiceNow's return on invested capital changed year-over-year?
ServiceNow's return on invested capital decreased by 47.0% year-over-year, from 16.6% to 8.8%.
What is the long-term trend for ServiceNow's return on invested capital?
Over 5 years (2020 to 2025), ServiceNow's return on invested capital has grown at a 15.7% compound annual growth rate (CAGR), from 6.9% to 14.3%.
What does return on invested capital mean?
Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.

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