ServiceNow (NOW) Gross Margin (2011 - 2026)
ServiceNow's Gross Margin was 70.68% in Q2 2026, down 6.80 percentage points from 77.48% a year earlier and down 4.39 percentage points from the prior quarter.
ServiceNow (NOW) Gross Margin (2011 - 2026) Analysis & Trends
On a trailing twelve-month basis, ServiceNow's Gross Margin was 74.77% through Jun 30, 2026, down 3.75 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 Q2 2026 figure marks the lowest quarterly Gross Margin since Q1 2016.
- Compared with a year earlier, Gross Margin has declined for seven straight quarters, with an average year-over-year change of -2.06 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 Q2 2026 was 75.07% (Q1 2026), 76.63% (Q4 2025) and 77.28% (Q3 2025).
Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Gross Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Palantir Technologies | 480.73 Bn | 449.68 Bn | 1.64 Bn | 84.66% |
| 2 | Oracle | 399.91 Bn | 272.04 Bn | - | - |
| 3 | Sap Se | 262.30 Bn | 190.08 Bn | 8.40 Bn | 73.17% |
| 4 | Salesforce | 202.26 Bn | 158.13 Bn | 8.70 Bn | 76.65% |
| 5 | ServiceNow | 153.84 Bn | 132.30 Bn | 2.82 Bn | 70.68% |
| 6 | Automatic Data Processing | 114.84 Bn | 96.97 Bn | 2.51 Bn | 45.88% |
| 7 | Intuit | 91.04 Bn | 70.38 Bn | 3.44 Bn | 79.10% |
| 8 | Relx | 70.51 Bn | 69.60 Bn | - | - |
| 9 | Strategy | 53.24 Bn | 46.23 Bn | 81.55 Mn | 66.64% |
| 10 | Thomson Reuters | 48.40 Bn | 45.18 Bn | - | - |
Historic 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% |
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_KEY
import 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();