ServiceNow, Inc. stock research
FY2026 Q1
ServiceNow (NOW) Gross Margin & Quarterly History
Explore ServiceNow, Inc. (NOW) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit rose compared to the prior quarter and the year-ago quarter, but gross margin declined. Cost of revenue grew at a faster pace, narrowing the margin.
- The faster increase in cost of revenue relative to revenue was the primary factor behind the margin decline.
- Gross margin weakened compared to the prior quarter and the same quarter last year. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.1%
Gross profit
$2.8B
Revenue
$3.8B
Cost of revenue
$940.0M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-3.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $3.2B | $2.5B | $724.0M | 77.5% |
| Sep 30, 2025 | $3.4B | $2.6B | $774.0M | 77.3% |
| Dec 31, 2025 | $3.6B | $2.7B | $834.0M | 76.6% |
| Mar 31, 2026 | $3.8B | $2.8B | $940.0M | 75.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-1.6 pts
Year-over-year change
Mar 31, 2025
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The faster increase in cost of revenue relative to revenue was the primary factor behind the margin decline.
Gross margin weakened compared to the prior quarter and the same quarter last year. Revenue and gross profit were higher in both comparisons.
Monitor whether cost of revenue growth continues to exceed revenue growth.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| ServiceNow, Inc. (NOW) | 75.1% |