ServiceNow profit margin NOW
Gross, operating and net profit as a share of revenue over the last twelve months, from 2011.
- Net margin, 12 months
- 11.3%
- Operating margin, 12 months
- 11.4%
- Net margin on a year earlier
- −2.4 pts
- Peer median
- 20.7%
Over the twelve months to Jun 30, 2026, ServiceNow kept 11.3% of its revenue as net profit, with an operating margin of 11.4% and a gross margin of 74.8%.
Five years earlier its net margin was 3.3%.
The median for 10 application software stocks of a similar size is 20.7%.
Profit margin over time
Fiscal year by fiscal year
| Fiscal year | Net margin | Operating margin | Gross margin |
|---|---|---|---|
| FY2025 | 13.2% | 13.7% | 77.5% |
| FY2024 | 13.0% | 12.4% | 79.2% |
| FY2023 | 19.3% | 8.5% | 78.6% |
| FY2022 | 4.5% | 4.9% | 78.3% |
| FY2021 | 3.9% | 4.4% | 77.1% |
| FY2020 | 2.6% | 4.4% | 78.2% |
| FY2019 | 18.1% | 1.2% | 77.0% |
| FY2018 | −1.0% | −1.6% | 76.1% |
| FY2017 | −6.6% | −3.4% | 73.9% |
| FY2016 | −32.5% | −30.4% | 71.3% |
| FY2015 | −19.7% | −16.5% | 67.2% |
| FY2014 | −26.3% | −22.2% | 63.6% |
| FY2013 | −17.4% | −15.6% | 63.4% |
| FY2012 | −15.3% | −15.4% | 57.3% |
| FY2011 | −1.3% | 1.0% | 63.6% |
Quarter by quarter
| Quarter | Ended | Net margin, 12 months | Change on a year | Operating margin |
|---|---|---|---|---|
| Q2 FY26 | 11.3% | −2.4 pts | 11.4% | |
| Q1 FY26 | 12.6% | −0.8 pts | 13.4% | |
| Q4 FY25 | 13.2% | +0.2 pts | 13.7% | |
| Q3 FY25 | 13.7% | +0.9 pts | 13.9% | |
| Q2 FY25 | 13.8% | +2.3 pts | 13.3% | |
| Q1 FY25 | 13.4% | −6.9 pts | 12.9% | |
| Q4 FY24 | 13.0% | −6.3 pts | 12.4% | |
| Q3 FY24 | 12.8% | −5.9 pts | 12.0% | |
| Q2 FY24 | 11.5% | −6.2 pts | 10.8% | |
| Q1 FY24 | 20.3% | +15.1 pts | 10.0% | |
| Q4 FY23 | 19.3% | +14.8 pts | 8.5% | |
| Q3 FY23 | 18.7% | +15.8 pts | 7.6% |
Against its peers
Companies in Software - Application nearest ServiceNow's size, closest first, today.
| Company | Profit margin |
|---|---|
| NOWServiceNow | 11.3% |
| UBERUber Technologies | 17.3% |
| CRMSalesforce | 22.0% |
| SHOPShopify | 14.5% |
| ADPAutomatic Data Processing | 20.1% |
| SNOWSnowflake | −20.1% |
| ADBEAdobe | 28.0% |
| DDOGDatadog | 4.5% |
| INTUIntuit | 21.3% |
| CDNSCadence Design Systems | 23.6% |
| APPAppLovin | 64.6% |
| Peer median | 20.7% |
Where ServiceNow ranks
What the profit margin tells you
Profit as a share of revenue at three levels: gross (after making the product), operating (after running the business) and net (after everything, including tax and interest).
Compare within an industry. 10% is superb for a retailer and poor for a software company.
More on ServiceNow
Valuation data, not investment advice. Prices as of . Reported figures come from the company's filings with the SEC.