NOW ServiceNow margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 65

Gross margin

73.1%

Operating margin

9.7%

EBITDA margin

21.8%

Net margin

9.4%

Using the latest TTM figures, ServiceNow shows a gross margin of 73.1%, an operating margin of 9.7%, an EBITDA margin of 21.8%, and a net margin of 9.4%. The company's available margins all declined, with gross margin recording the strongest contraction of 5 percentage points.

NOW margin history

Gross, operating, EBITDA and net margin trends

Looking back over the last 3 years, ServiceNow recorded average margins of 77.71% gross, 11.83% operating, 21.25% EBITDA, and 13.69% net. The current figures show EBITDA margin is above its three-year average, while gross, operating, and net margins are below their three-year averages.

NOW margin expansion

Year-over-year margin changes in percentage points

Year over year, gross, operating, EBITDA, and net margins all declined, with gross margin showing the largest decrease at 5 percentage points.

Gross margin expansion

-5pp

Operating margin expansion

-4.2pp

EBITDA margin expansion

-0.8pp

Net margin expansion

-4.3pp

NOW Gross margin

ServiceNow recorded an average gross margin of 77.71% across the last 3 years. The current gross margin of 73.1% is 4.6 percentage points below its three-year average. ServiceNow's gross margin ranged from a low of 73.1% in Sep 2026 to a high of 79.2% in Dec 2024.

NOW Operating margin

ServiceNow's operating margin averaged 11.83% during the last 3 years. Compared with its three-year average, ServiceNow's current operating margin is 9.7% and is 2.1 percentage points below its three-year average. Over the last 3 years, ServiceNow's operating margin peaked at 13.9% in Sep 2025 and reached a low of 8.5% in Dec 2023.

NOW EBITDA margin

In the last 3 years, ServiceNow had an average EBITDA margin of 21.25%. Against its three-year average, ServiceNow's EBITDA margin is currently 21.8%, 0.6 percentage points above its three-year average. Looking back over the last 3 years, ServiceNow's EBITDA margin reached 23.2% at its highest point in Jun 2026 and 17.5% at its lowest in Dec 2023.

NOW Net margin

Across the last 3 years, ServiceNow's net margin came to 13.69%. The current net margin stands at 9.4%, 4.3 percentage points below its three-year average. Net margin was highest at 20.3% in Mar 2024 and lowest at 9.4% in Sep 2026.

NOW margin group comparison

Margins compared with peer-group, industry and sector averages

ServiceNow's gross margin of 73.1% is above the Technology sector, the industry and its peers average. In comparison with its Technology sector average of 52.4%, ServiceNow's gross margin is 40% higher.

NOW margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is ServiceNow's gross margin?

For the period ending Sep 30, 2026, NOW recorded a gross margin of 73.1%.

What is ServiceNow's operating margin?

For the period ending Sep 30, 2026, NOW recorded an operating margin of 9.7%.

What is ServiceNow's EBITDA margin?

As of Sep 30, 2026, NOW has an EBITDA margin of 21.8%.

What is ServiceNow's net margin?

For the period ending Sep 30, 2026, NOW recorded a net margin of 9.4%.

What are the average margins of NOW?

ServiceNow's gross, operating, EBITDA, and net margins averaged 77.7% gross, 11.8% operating, 21.3% EBITDA, and 13.7% net over the last 3 years.

What are the highest historical margins of NOW?

Over this 5-year history, NOW peaked at 79.2% gross in Dec 2024, 13.9% operating in Sep 2025, 23.2% EBITDA in Jun 2026, and 20.3% net in Mar 2024.

What are the lowest historical margins of NOW?

ServiceNow's lowest recorded margins during the past 5 years were 73.1% gross in Sep 2026, 3.3% operating in Jun 2022, 9.7% EBITDA in Sep 2022, and 2.8% net in Jun 2022.