ServiceNow (NOW) Gross Margin (2011 - 2026)
ServiceNow (NOW) posted quarterly Gross Margin of 70.68% for Q2 2026, down 680.0% year-on-year 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 reported Gross Margin for 16 consecutive years, with 70.68% the latest figure, recorded 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 eased to 70.68% in Q2 2026 per NOW's latest filing, from 75.07% in the prior quarter.
- Over the last five years, Gross Margin for NOW reached as high as 80.02% in Q1 2024 and fell as low as 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 surged 178 bps — and 2026, when it tumbled 680 bps.
- Year by year, Gross Margin stood at 78.61% in 2022, then gained by 0 bps to 78.83% in 2023, then dropped by 0 bps to 78.66% in 2024, then declined by 3 bps to 76.63% in 2025, then fell by 8 bps to 70.68% in 2026.
- According to Business Quant data, Gross Margin over the past three periods registered 70.68%, 75.07%, and 76.63% for Q2 2026, Q1 2026, and Q4 2025 respectively.
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Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Gross Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Sap Se | 208.91 Bn | 189.27 Bn | 8.16 Bn | 72.98% |
| 2 | Full Truck Alliance | 188.77 Bn | 186.13 Bn | - | - |
| 3 | Shopify | 145.98 Bn | 140.23 Bn | 1.55 Bn | 48.77% |
| 4 | Uber Technologies | 141.48 Bn | 140.44 Bn | 5.95 Bn | 45.03% |
| 5 | Salesforce | 128.51 Bn | 116.67 Bn | 8.56 Bn | 76.92% |
| 6 | ServiceNow | 98.38 Bn | 93.20 Bn | 2.82 Bn | 70.68% |
| 7 | Automatic Data Processing | 97.56 Bn | 94.34 Bn | 2.87 Bn | 48.28% |
| 8 | Snowflake | 91.55 Bn | 88.59 Bn | 926.45 Mn | 66.61% |
| 9 | Cadence Design Systems | 89.91 Bn | 88.50 Bn | 1.41 Bn | 95.85% |
| 10 | Datadog | 86.34 Bn | 81.58 Bn | 797.20 Mn | 79.21% |
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% |