NOW ServiceNow margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 76

Gross margin

74.8%

Operating margin

11.4%

EBITDA margin

23.2%

Net margin

11.3%

Using the latest TTM figures, ServiceNow shows a gross margin of 74.8%, an operating margin of 11.4%, an EBITDA margin of 23.2%, and a net margin of 11.3%. EBITDA margin showed the largest year-over-year gain at 1.3 percentage points, whereas gross margin showed the largest decline at 3.7 percentage points.

NOW margin history

Gross, operating, EBITDA and net margin trends

Looking back over the last 3 years, ServiceNow recorded average margins of 78.16% gross, 11.66% operating, 20.78% EBITDA, and 14.47% 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

EBITDA margin expanded by 1.3 percentage points, but gross margin contracted by 3.7 percentage points, operating margin by 1.9 percentage points, and net margin by 2.5 percentage points.

Gross margin expansion

-3.7pp

Operating margin expansion

-1.9pp

EBITDA margin expansion

1.3pp

Net margin expansion

-2.5pp

NOW Gross margin

ServiceNow recorded an average gross margin of 78.16% across the last 3 years. The current gross margin of 74.8% is 3.4 percentage points below its three-year average. ServiceNow's gross margin ranged from a low of 74.8% in Jun 2026 to a high of 79.2% in Dec 2024.

NOW Operating margin

ServiceNow's operating margin averaged 11.66% during the last 3 years. Compared with its three-year average, ServiceNow's current operating margin is 11.4% and is 0.3 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 7.6% in Sep 2023.

NOW EBITDA margin

In the last 3 years, ServiceNow had an average EBITDA margin of 20.78%. Against its three-year average, ServiceNow's EBITDA margin is currently 23.2%, 2.4 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 16.2% at its lowest in Sep 2023.

NOW Net margin

Across the last 3 years, ServiceNow's net margin came to 14.47%. The current net margin stands at 11.3%, 3.2 percentage points below its three-year average. Net margin was highest at 20.3% in Mar 2024 and lowest at 11.3% in Jun 2026.

NOW margin group comparison

Margins compared with peer-group, industry and sector averages

ServiceNow's gross margin of 74.8% is above the Technology sector, the industry and its peers average. In comparison with its Technology sector average of 51.9%, ServiceNow's gross margin is 44% higher.

NOW margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is ServiceNow's gross margin?

For the period ending Jun 30, 2026, NOW recorded a gross margin of 74.8%.

What is ServiceNow's operating margin?

For the period ending Jun 30, 2026, NOW recorded an operating margin of 11.4%.

What is ServiceNow's EBITDA margin?

As of Jun 30, 2026, NOW has an EBITDA margin of 23.2%.

What is ServiceNow's net margin?

For the period ending Jun 30, 2026, NOW recorded a net margin of 11.3%.

What are the average margins of NOW?

ServiceNow's gross, operating, EBITDA, and net margins averaged 78.2% gross, 11.7% operating, 20.8% EBITDA, and 14.5% 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 74.8% gross in Jun 2026, 3.3% operating in Jun 2022, 9.7% EBITDA in Sep 2022, and 2.8% net in Jun 2022.