ServiceNow, Inc. (NOW) Gross Margin: 76.56%
Is ServiceNow, Inc.’s gross margin high or low?
ServiceNow, Inc.'s gross margin of 76.56% is in line with its 5-year average of 78.13%, near the low end of its 5-year range (76.56%–79.18%).
As of Thursday, June 11, 2026. 2.29% below its 12-month average of 78.36%.
NOW Gross Margin Chart
NOW Average Gross Margin Chart
NOW Current vs Average Gross Margin Chart
NOW Gross Margin Metrics
GROSS MARGIN
76.56%
GROSS MARGIN AVG TTM
78.36%
GROSS MARGIN AVG 3Y
78.40%
GROSS MARGIN AVG 5Y
78.13%
GROSS MARGIN AVG 10Y
75.88%
GROSS MARGIN AVG 15Y
71.72%
GROSS MARGIN AVG 20Y
69.34%
CURRENT VS TTM AVG
-2.29%
CURRENT VS 3Y AVG
-2.34%
CURRENT VS 5Y AVG
-2.01%
CURRENT VS 10Y AVG
+0.90%
CURRENT VS 15Y AVG
+6.75%
CURRENT VS 20Y AVG
+10.41%
NOW Competitors' Gross Margin
| NAME | MARKET CAP | GROSS MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| ServiceNow, Inc. (NOW) | $106.09B | 76.56% | 78.36% | 78.40% | 78.13% |
| Fortinet, Inc. (FTNT) | $106.28B | 80.67% | 80.70% | 78.38% | 78.02% |
| Cadence Design Systems, Inc. (CDNS) | $105.84B | 88.85% | 86.20% | 87.84% | 88.28% |
| Accenture plc (ACN) | $103.23B | 31.99% | 32.26% | 32.21% | 32.13% |
| Adobe Inc. (ADBE) | $90.18B | 89.10% | 88.83% | 88.31% | 88.28% |
| Synopsys, Inc. (SNPS) | $87.37B | 73.47% | 78.33% | 79.46% | 79.29% |
| Snowflake Inc. (SNOW) | $82.52B | 67.15% | 66.84% | 66.73% | 64.72% |
| Datadog, Inc. (DDOG) | $81.87B | 79.89% | 80.38% | 80.20% | 79.41% |
| Cloudflare, Inc. (NET) | $78.86B | 73.33% | 75.91% | 76.08% | 76.41% |
| Monolithic Power Systems, Inc. (MPWR) | $78.09B | 55.18% | 55.25% | 56.25% | 56.16% |
Gross Margin Analysis
Gross Margin
76.6%
(Revenue - COGS) / Revenue
ServiceNow, Inc. Gross Margin Formula & Definition
Gross Margin = Gross Profit / Revenue
Gross margin is the percentage of revenue remaining after the cost of goods sold, reflecting core product profitability.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
ServiceNow, Inc. Gross Margin FAQ
- What is the gross margin for ServiceNow, Inc. (NOW)?
- The gross margin for NOW stock is 76.56%.
- Is ServiceNow, Inc.'s gross margin high or low?
- ServiceNow, Inc.'s gross margin of 76.56% is in line with its 5-year average of 78.13%, near the low end of its 5-year range (76.56%–79.18%).
- What is the TTM average gross margin for ServiceNow, Inc. (NOW)?
- The TTM average gross margin for NOW stock is 78.36%.
- What is the 3Y average gross margin for ServiceNow, Inc. (NOW)?
- The 3Y average gross margin for NOW stock is 78.40%.
- What is the 5Y average gross margin for ServiceNow, Inc. (NOW)?
- The 5Y average gross margin for NOW stock is 78.13%.
- What is the 10Y average gross margin for ServiceNow, Inc. (NOW)?
- The 10Y average gross margin for NOW stock is 75.88%.
- What is the 15Y average gross margin for ServiceNow, Inc. (NOW)?
- The 15Y average gross margin for NOW stock is 71.72%.
- What is the 20Y average gross margin for ServiceNow, Inc. (NOW)?
- The 20Y average gross margin for NOW stock is 69.34%.
ServiceNow, Inc. Gross Margin History
| DATE | GROSS MARGIN |
|---|---|
| 2025-12-31 | 77.53% |
| 2024-12-31 | 79.18% |
| 2023-12-31 | 78.59% |
| 2022-12-31 | 78.29% |
| 2021-12-31 | 77.05% |
| 2020-12-31 | 78.16% |
| 2019-12-31 | 76.98% |
| 2018-12-31 | 76.13% |
| 2017-12-31 | 74.15% |
| 2016-12-31 | 71.33% |
| 2015-12-31 | 67.24% |
| 2014-12-31 | 63.55% |
| 2013-12-31 | 63.44% |
| 2012-12-31 | 57.32% |
| 2011-12-31 | 65.92% |
| 2010-12-31 | 62.63% |
| 2009-06-30 | 59.07% |
| 2008-06-30 | 47.73% |
| 2007-06-30 | 63.16% |
Related Metrics
About ServiceNow, Inc.
ServiceNow, Inc. specializes in delivering cloud-based solutions designed to streamline and automate critical business services for organizations across the globe. Its flagship "Now Platform" serves as the foundation, leveraging technologies such as workflow automation, artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). This platform also incorporates robust features like performance analytics, electronic service catalogs, configuration management systems, data benchmarking, encryption capabilities, and various collaboration and development tools. ServiceNow offers a comprehensive suite of applications built on this platform, catering to diverse enterprise needs. Key offerings include IT Service Management (ITSM), which streamlines support for employees, customers, and partners; IT Business Management (ITBM); IT Operations Management (ITOM), designed to integrate and manage both physical and cloud-based IT infrastructure; and IT Asset Management (ITAM) for automating asset lifecycles. Its Security Operations solution facilitates seamless integration between internal systems and third-party security tools. Beyond IT, the company provides solutions for Governance, Risk, and Compliance (GRC) to enhance organizational resilience, along with tools for Human Resources, Legal, and general workplace service delivery, including dedicated safe workplace applications. Other specialized applications cover Customer Service Management (CSM) and Field Service Management (FSM). To further extend functionality, ServiceNow offers App Engine for custom development and IntegrationHub to connect workflows across various applications. The company also provides a range of professional services, industry-specific solutions, and comprehensive customer support. ServiceNow's diverse client base spans critical sectors such as government, financial services, healthcare, telecommunications, manufacturing, and education, alongside various IT services, technology, oil and gas, and consumer product industries. The company reaches these customers through a combination of its direct sales force and a network of resale partners. Notably, a strategic alliance with Celonis assists clients in pinpointing and prioritizing business processes ripe for automation. Established in 2004 and headquartered in Santa Clara, California, the company originally operated as Service-now.com before rebranding to ServiceNow, Inc. in May 2012.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- William R. McDermott