ServiceNow (NOW) Gross Margin (2011 - 2026)
ServiceNow's Gross Margin was 70.51% in Q3 2026, down 6.78 percentage points from 77.28% a year earlier and down 0.17 percentage points from the prior quarter.
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Analysis
ServiceNow (NOW) Gross Margin (2011 - 2026) Analysis & Trends
On a trailing twelve-month basis, ServiceNow's Gross Margin was 73.08% through Sep 30, 2026, down 4.97 percentage points year-over-year; for FY2025, it was 77.53%, down 1.64 percentage points from FY2024.
- Gross Margin shows a five-year change of -0.62 percentage points (FY2020 to FY2025).
- In earlier years, Gross Margin was 79.18% in FY2024 (+0.59 pp), 78.59% in FY2023 (+0.30 pp), 78.29% in FY2022 (+1.24 pp) and 77.05% in FY2021 (-1.11 pp).
- The Q3 2026 figure marks the lowest quarterly Gross Margin since Q1 2016.
- Compared with a year earlier, Gross Margin has declined for eight straight quarters, with an average year-over-year change of -3.01 percentage points over the last eight quarters.
- The best year-over-year quarter for Gross Margin over five years was Q4 2022 (a gain of 1.78 percentage points); the worst was Q2 2026 (a drop of 6.80 percentage points).
- Per Business Quant data, NOW's Gross Margin in the three quarters before Q3 2026 was 70.68% (Q2 2026), 75.07% (Q1 2026) and 76.63% (Q4 2025).
Peer Set
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Gross Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Palantir Technologies | 413.65 Bn | 378.59 Bn | 1.93 Bn | 83.43% |
| 2 | Oracle | 374.28 Bn | 246.84 Bn | - | - |
| 3 | Sap Se | 294.90 Bn | 222.88 Bn | 8.64 Bn | 73.13% |
| 4 | Salesforce | 186.99 Bn | 142.87 Bn | 8.70 Bn | 76.65% |
| 5 | Automatic Data Processing | 120.08 Bn | 106.87 Bn | 2.53 Bn | 46.00% |
| 6 | ServiceNow | 113.02 Bn | 92.28 Bn | 2.90 Bn | 70.51% |
| 7 | Intuit | 95.72 Bn | 75.07 Bn | 3.44 Bn | 79.10% |
| 8 | Relx | 74.73 Bn | 73.84 Bn | - | - |
| 9 | Strategy | 57.35 Bn | 44.49 Bn | 89.63 Mn | 71.46% |
| 10 | Thomson Reuters | 52.16 Bn | 48.13 Bn | - | - |
Historic Data
Download Data
Historic Data
| Date | Value |
|---|---|
| Sep 30, 2026 | 70.51% |
| 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% |
API Access
ServiceNow Gross Margin API
Pull this series into your own models, spreadsheets and apps with the Business Quant
Historical Metrics API. The request below matches the chart above — change the
frequency, period or values and it follows. Swap YOUR_API_KEY for your own key.
https://data.businessquant.com/historic?slug=gross-margin&ticker=NOW&period=max&api_key=YOUR_API_KEYimport requests
url = "https://data.businessquant.com/historic"
params = {"slug": "gross-margin", "ticker": "NOW", "period": "max", "api_key": "YOUR_API_KEY"}
data = requests.get(url, params=params).json()const res = await fetch("https://data.businessquant.com/historic?slug=gross-margin&ticker=NOW&period=max&api_key=YOUR_API_KEY");
const data = await res.json();