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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
Salesforce logo
SalesforceCRM
10.5%+0.8pp
Workday, Inc. logo
Workday, Inc.WDAY
8%+3.3pp
Oracle logo
OracleORCL
30.6%+13.6pp
Guidewire Software logo
Guidewire SoftwareGWRE
12.1%
Atlassian logo
AtlassianTEAM
-19.6%-4.8pp

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
Operating margin13.4%+0.5pp
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 return on invested capital?
ServiceNow (NOW) reported return on invested capital of 20.1% in Q1 2026.
How has ServiceNow's return on invested capital changed year-over-year?
ServiceNow's return on invested capital decreased by 6.3% year-over-year, from 21.5% to 20.1%.
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 31.6% compound annual growth rate (CAGR), from 4.9% to 19.4%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.