ServiceNow (NOW) Gross Margin (2011 - 2026)
ServiceNow's (NOW) quarterly Gross Margin came in at 70.68% in Q2 2026, down 680.0% YoY from 12.19% in Q2 2025, and down 5.84% on a QoQ basis from 75.07% in Q1 2026.
ServiceNow (NOW) Gross Margin (2011 - 2026) Analysis & Trends
ServiceNow (NOW) has 16 years of Gross Margin data on file, last reported at 70.68% in Q2 2026.
- Quarterly Gross Margin fell 680.0% year-over-year to 70.68% in Q2 2026, while the trailing twelve-month figure through Jun 2026 was 74.77% (down 375.0% YoY) and the FY2025 annual result came in at 77.53%, down 164.0% from the prior year.
- Gross Margin fell to 70.68% in Q2 2026, from 75.07% in the prior quarter.
- In the past five years, Gross Margin ranged from a high of 80.02% in Q1 2024 to a low of 70.68% in Q2 2026.
- A 5-year average of 77.8% and a median of 78.45% in 2022 frame the typical range for Gross Margin.
- Annual changes were most pronounced in 2022 — Gross Margin jumped 178 bps — and 2026, when it plunged 680 bps.
- Tracing NOW's Gross Margin over 5 years: stood at 78.61% in 2022, then grew by 0 bps to 78.83% in 2023, then retreated by 0 bps to 78.66% in 2024, then decreased by 3 bps to 76.63% in 2025, then slipped by 8 bps to 70.68% in 2026.
- The last three Gross Margin figures came in at 70.68% (Q2 2026), 75.07% (Q1 2026), and 76.63% (Q4 2025), per Business Quant data.
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Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Gross Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Sap Se | 255.48 Bn | 234.41 Bn | 16.51 Bn | 73.08% |
| 2 | Shopify | 198.95 Bn | 194.00 Bn | 1.71 Bn | 47.67% |
| 3 | Salesforce | 160.70 Bn | 148.86 Bn | 8.56 Bn | 76.92% |
| 4 | Uber Technologies | 154.94 Bn | 149.73 Bn | 6.38 Bn | 44.93% |
| 5 | ServiceNow | 128.25 Bn | 123.58 Bn | 2.82 Bn | 70.68% |
| 6 | Snowflake | 114.00 Bn | 111.05 Bn | 926.45 Mn | 66.61% |
| 7 | Automatic Data Processing | 108.58 Bn | 104.35 Bn | 2.51 Bn | 45.88% |
| 8 | Adobe | 105.34 Bn | 99.72 Bn | 5.90 Bn | 89.20% |
| 9 | Intuit | 94.55 Bn | 87.77 Bn | 7.24 Bn | 84.61% |
| 10 | Datadog | 91.70 Bn | 86.71 Bn | 881.34 Mn | 78.59% |
Historic Data
Download Data| Date | Value |
|---|---|
| Jun 30, 2026 | 70.68% |
| Mar 31, 2026 | 75.07% |
| Dec 31, 2025 | 76.63% |
| Sep 30, 2025 | 77.28% |
| Jun 30, 2025 | 77.48% |
| Mar 31, 2025 | 78.92% |
| Dec 31, 2024 | 78.66% |
| Sep 30, 2024 | 79.12% |
| Jun 30, 2024 | 78.99% |
| Mar 31, 2024 | 80.02% |
| Dec 31, 2023 | 78.83% |
| Sep 30, 2023 | 78.32% |
| Jun 30, 2023 | 78.09% |
| Mar 31, 2023 | 79.10% |
| Dec 31, 2022 | 78.61% |
| Sep 30, 2022 | 78.15% |
| Jun 30, 2022 | 77.80% |
| Mar 31, 2022 | 78.57% |
| Dec 31, 2021 | 76.83% |
| Sep 30, 2021 | 76.85% |