How does ServiceNow (NOW) make money?

ServiceNow (NOW) primarily makes money through License and Service, which accounts for 97.1% of total revenue. For TTM through Q1 2026, ServiceNow generated $13.96B in total revenue with a net profit margin of 12.6%.

What is ServiceNow (NOW) gross profit margin?

ServiceNow (NOW) reported a gross profit margin of 76.6% for TTM through Q1 2026, equivalent to $10.69B in gross profit. This means ServiceNow retains 76.6% of each revenue unit after direct costs of production.

What is ServiceNow (NOW) operating profit margin?

ServiceNow (NOW) reported an operating profit margin of 13.4% for TTM through Q1 2026, equivalent to $1.88B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is ServiceNow (NOW) net profit margin?

ServiceNow (NOW) reported a net profit margin of 12.6% for TTM through Q1 2026, equivalent to $1.76B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does ServiceNow (NOW) invest in R&D?

ServiceNow (NOW) invested $3.08B in research and development in TTM through Q1 2026 (22.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does ServiceNow (NOW) spend on capital expenditures?

ServiceNow (NOW) spent $804.00M on capital expenditures in TTM through Q1 2026 (5.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is ServiceNow (NOW) free cash flow?

ServiceNow (NOW) generated $4.63B in free cash flow for TTM through Q1 2026 (33.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is ServiceNow (NOW) effective tax rate?

ServiceNow (NOW) had an effective tax rate of 26.1% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How ServiceNow (NOW) Makes Money: A Visual Guide

ServiceNow (NOW) generated $13.96B in revenue, earning $1.76B in net profit (12.6% margin). Its largest revenue source is License and Service (97.1% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

ServiceNow (NOW) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 23, 2026).

Frequently asked questions

How does ServiceNow (NOW) make money?: ServiceNow (NOW) primarily makes money through License and Service, which accounts for 97.1% of total revenue. For TTM through Q1 2026, ServiceNow generated $13.96B in total revenue with a net profit margin of 12.6%.
What is ServiceNow (NOW) gross profit margin?: ServiceNow (NOW) reported a gross profit margin of 76.6% for TTM through Q1 2026, equivalent to $10.69B in gross profit. This means ServiceNow retains 76.6% of each revenue unit after direct costs of production.
What is ServiceNow (NOW) operating profit margin?: ServiceNow (NOW) reported an operating profit margin of 13.4% for TTM through Q1 2026, equivalent to $1.88B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is ServiceNow (NOW) net profit margin?: ServiceNow (NOW) reported a net profit margin of 12.6% for TTM through Q1 2026, equivalent to $1.76B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does ServiceNow (NOW) invest in R&D?: ServiceNow (NOW) invested $3.08B in research and development in TTM through Q1 2026 (22.1% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does ServiceNow (NOW) spend on capital expenditures?: ServiceNow (NOW) spent $804.00M on capital expenditures in TTM through Q1 2026 (5.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is ServiceNow (NOW) free cash flow?: ServiceNow (NOW) generated $4.63B in free cash flow for TTM through Q1 2026 (33.2% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is ServiceNow (NOW) effective tax rate?: ServiceNow (NOW) had an effective tax rate of 26.1% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.