How does ServiceNow (NOW) make money?

ServiceNow (NOW) generates revenue primarily from License and Service, which accounted for 97.1% of total revenue in TTM through Q1 2026. The company reported $13.96B in revenue and converted 12.6% of it into net profit, equivalent to roughly $1.76B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of ServiceNow (NOW)?

ServiceNow (NOW) reported a gross profit margin of 76.6% in TTM through Q1 2026, equivalent to $10.69B in gross profit on $13.96B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of ServiceNow (NOW)?

ServiceNow (NOW) reported an operating profit margin of 13.4% in TTM through Q1 2026, equivalent to $1.88B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of ServiceNow (NOW)?

ServiceNow (NOW) reported a net profit margin of 12.6% in TTM through Q1 2026, equivalent to $1.76B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is ServiceNow (NOW) profitable?

Yes. ServiceNow (NOW) reported $1.76B in net income for TTM through Q1 2026, with a net profit margin of 12.6%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does ServiceNow (NOW) invest in research and development?

ServiceNow (NOW) invested $3.08B in research and development during TTM through Q1 2026, roughly 22.1% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

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

ServiceNow (NOW) spent $804.00M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 5.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does ServiceNow (NOW) generate?

ServiceNow (NOW) generated $4.63B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 33.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of ServiceNow (NOW)?

ServiceNow (NOW) had an effective tax rate of 26.1% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of ServiceNow (NOW)?

ServiceNow (NOW) reports revenue across 2 reportable product segments, led by License and Service at 97.1% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does ServiceNow (NOW) generate most of its revenue?

North America is the largest geographic market for ServiceNow (NOW), accounting for 62.6% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How ServiceNow Makes Money: 2026 Visual Revenue Map

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).

ServiceNow (NOW) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for ServiceNow (NOW) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
License and Service	$13.55B	97.1%
Technology Service	$411.00M	2.9%
Total	$13.96B	100%

License and Service$13.55B
Technology Service$411.00M
Total$13.96B

ServiceNow (NOW) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for ServiceNow (NOW), TTM through Q1 2026
Region	Revenue (USD)	% of total
North America	$8.74B	62.6%
EMEA	$3.60B	25.8%
Asia Pacific And Other	$1.62B	11.6%
Total	$13.96B	100%

North America
EMEA
Asia Pacific And Other
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, ServiceNow (NOW) reports revenue across 2 operating segments; the largest segment was License and Service at 97.1%, followed by Technology Service (2.9%). Separately, by end-market geography, North America accounted for 62.6% of revenue, followed by EMEA (25.8%) and Asia Pacific And Other (11.6%).

Frequently asked questions

Data & methodology

ServiceNow (NOW) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

NOW Overview

Counters

Income Statement

Cash Flow

Capital Return

Forecast & Valuation