ServiceNow (NOW) Gross Margin (2011 - 2026)
ServiceNow (NOW) reported Gross Margin of 75.07% for Q1 2026, down 385.0% on a YoY basis from 26.34% in Q1 2025, and down 2.03% quarter-over-quarter from 76.63% in Q4 2025.
ServiceNow (NOW) Gross Margin (2011 - 2026) Analysis & Trends
ServiceNow has reported Gross Margin for 16 years, with the latest figure at 75.07% in Q1 2026.
- For the quarter ending Q1 2026, Gross Margin fell 385.0% year-over-year to 75.07%; the trailing twelve-month figure through Mar 2026 stood at 76.56% (down 236.0% YoY), and the FY2025 full-year result was 77.53%, down 164.0% from the prior year.
- Gross Margin for Q1 2026 stood at 75.07%, down from 76.63% in the prior quarter.
- The five-year high for Gross Margin was 80.02% in Q1 2024, with the low at 75.07% in Q1 2026.
- Historically, Gross Margin has averaged 78.21% across 5 years, with a median of 78.57% in 2022.
- Annual changes were most pronounced in 2022 — Gross Margin jumped 178 bps — and 2026, when it slumped 385 bps.
- ServiceNow's Gross Margin 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 retreated by 2 bps to 75.07% in 2026.
- The last three Gross Margin figures came in at 75.07% (Q1 2026), 76.63% (Q4 2025), and 77.28% (Q3 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 | 238.14 Bn | 220.17 Bn | 8.16 Bn | 72.98% |
| 2 | Full Truck Alliance | 166.83 Bn | 164.28 Bn | - | - |
| 3 | Uber Technologies | 150.36 Bn | 149.32 Bn | 11.88 Bn | 89.96% |
| 4 | Shopify | 147.75 Bn | 142.01 Bn | 1.55 Bn | 48.77% |
| 5 | Salesforce | 140.39 Bn | 128.55 Bn | 8.56 Bn | 76.92% |
| 6 | Cadence Design Systems | 105.73 Bn | 104.32 Bn | 1.26 Bn | 85.65% |
| 7 | ServiceNow | 105.42 Bn | 100.24 Bn | 2.83 Bn | 75.07% |
| 8 | Automatic Data Processing | 89.57 Bn | 86.34 Bn | 2.87 Bn | 48.28% |
| 9 | Adobe | 85.05 Bn | 78.16 Bn | 5.90 Bn | 89.20% |
| 10 | Snowflake | 82.57 Bn | 79.61 Bn | 926.45 Mn | 66.61% |
Historic Data
Download Data| Date | Value |
|---|---|
| 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% |
| Jun 30, 2021 | 76.65% |