ServiceNow, Inc. NOW

135.62 (2.16) (1.57%) as of 25 Sep
Market cap
$142.1B
P/E
84.0×
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ServiceNow, Inc. (NOW) Gross margin

ServiceNow, Inc.'s gross margin over the twelve months to 30 June 2026 was 74.8%, down 2.8 percentage points from fiscal 2025 (77.5%). Over the past ten years it has ranged from 67.2% (fiscal 2015) to 79.2% (fiscal 2024); the current reading is higher than 64% of that period. That is above the Software Application industry median of 67.0% and above the Technology sector median of 47.2%.

Gross margin, annual

Annual

Period Gross margin Change (points)
FY2025 77.5% (1.65)
FY2024 79.2% 0.59
FY2023 78.6% 0.30
FY2022 78.3% 1.24
FY2021 77.1% (1.11)
FY2020 78.2% 1.17
FY2019 77.0% 0.86
FY2018 76.1% 2.18
FY2017 74.0% 2.63
FY2016 71.3% 4.08

Quarterly

Period Gross margin Change (points)
Jun 2026 70.7% (4.39)
Mar 2026 75.1% (1.56)
Dec 2025 76.6% (0.65)
Sep 2025 77.3% (0.20)
42 more quarters

Against its own ten years

Low 67.2% High 79.2%
Ten-year median 77.1%
Current reading's percentile 64

Gross margin against peers

Company Gross margin
ADBE Adobe Inc. compare 89.3%
CDNS Cadence Design Systems, Inc. compare 85.9%
DDOG Datadog, Inc. compare 79.5%
CRM Salesforce, Inc. compare 77.3%
NOW ServiceNow, Inc. 74.8%
SNOW Snowflake Inc. compare 67.0%
SHOP Shopify Inc. compare 47.8%
ADP Automatic Data Processing, Inc. compare 46.4%
UBER Uber Technologies, Inc. compare 42.3%
Software Application industry median 67.0%
Technology sector median 47.2%
Market median 46.3%

What Gross margin is

Gross Margin tells an investor how much of each sale a company keeps after paying the direct costs of making or buying what it sells.

Gross Profit ÷ Revenue

The full definition of Gross margin →

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