Net Profit Margin
since 2012
Calculation
ServiceNow Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 13.16% | = | 100 | × | 1,748) | ÷ | 13,278) |
| Dec 31, 2024 | 12.97% | = | 100 | × | 1,425) | ÷ | 10,984) |
| Dec 31, 2023 | 19.30% | = | 100 | × | 1,731) | ÷ | 8,971) |
| Dec 31, 2022 | 4.49% | = | 100 | × | 325) | ÷ | 7,245) |
| Dec 31, 2021 | 3.90% | = | 100 | × | 230) | ÷ | 5,896) |
| Dec 31, 2020 | 2.62% | = | 100 | × | 119) | ÷ | 4,519) |
| Dec 31, 2019 | 18.11% | = | 100 | × | 627) | ÷ | 3,460) |
| Dec 31, 2018 | -1.02% | = | 100 | × | (27) | ÷ | 2,609) |
| Dec 31, 2017 | -7.71% | = | 100 | × | (149) | ÷ | 1,933) |
| Dec 31, 2016 | -32.49% | = | 100 | × | (452) | ÷ | 1,391) |
| Dec 31, 2015 | -19.73% | = | 100 | × | (198) | ÷ | 1,005) |
| Dec 31, 2014 | -26.28% | = | 100 | × | (179) | ÷ | 683) |
| Dec 31, 2013 | -17.36% | = | 100 | × | (74) | ÷ | 425) |
| Dec 31, 2012 | -15.32% | = | 100 | × | (37) | ÷ | 244) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The net profit margin exhibited significant volatility between 2012 and 2025. Initially, the metric demonstrated a consistent decline, reaching its lowest point in 2016 before undergoing a substantial improvement. Subsequent years showed fluctuating, but generally positive, performance culminating in a relatively stable margin by the end of the analyzed period.
- Early Years (2012-2016)
- From 2012 to 2016, the net profit margin consistently decreased, transitioning from a negative 15.32% in 2012 to a negative 32.49% in 2016. This period was characterized by net losses, which widened over time, coupled with increasing revenues. The declining margin suggests that revenue growth was insufficient to offset increasing costs and expenses.
- Turnaround and Growth (2017-2019)
- A significant turnaround began in 2017, with the net profit margin improving to -7.71%. This improvement continued dramatically in 2019, reaching a positive 18.11%. This shift indicates improved cost management, increased pricing power, or a change in the company’s revenue mix. The positive margin in 2019 represents a substantial change from the preceding years.
- Stabilization and Recent Performance (2020-2025)
- Following the substantial gain in 2019, the net profit margin experienced a decrease to 2.62% in 2020, before recovering to 3.90% in 2021 and 4.49% in 2022. The metric then experienced a significant increase to 19.30% in 2023, followed by a slight decrease to 12.97% in 2024 and a further increase to 13.16% in 2025. This period suggests a stabilization of profitability, with fluctuations likely influenced by specific operational factors or economic conditions. The margin remained positive throughout this period, indicating sustained profitability.
- Relationship to Revenue
- Revenues consistently increased throughout the period. However, the net profit margin’s trajectory was not directly correlated with revenue growth in the early years, indicating that revenue increases alone did not drive profitability. The positive correlation between revenue and margin became more apparent in the later years, suggesting that as the company scaled, it was able to leverage its revenue growth to improve profitability.
Comparison to Competitors
ServiceNow Inc., net profit margin, long-term trends, comparison to competitors
| ServiceNow Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 13.16% | 11.02% | 30.00% | — | — | -0.49% | — | — | 20.55% | 36.15% | 21.68% | — | 12.30% | 16.35% | 18.89% | 6.23% |
| Dec 31, 2024 | 12.97% | 11.19% | 25.85% | 33.55% | 22.74% | 2.92% | 6.85% | 9.60% | 18.19% | 35.96% | 19.76% | 16.13% | 32.11% | 11.87% | 36.94% | 19.02% |
| Dec 31, 2023 | 19.30% | 10.72% | 27.97% | 10.87% | 25.46% | -8.18% | 2.28% | 12.13% | 16.59% | 34.15% | 17.02% | 9.43% | 6.38% | 0.66% | 21.05% | -5.90% |
| Dec 31, 2022 | 4.49% | 11.17% | 27.01% | -6.84% | 23.84% | -16.18% | -2.99% | 2.71% | 16.23% | 36.69% | 15.83% | -19.61% | -4.85% | 5.45% | 19.38% | 0.57% |
| Dec 31, 2021 | 3.90% | 11.69% | 30.55% | 1.27% | 23.29% | -10.59% | -2.02% | 10.01% | 21.41% | 36.45% | 33.96% | -33.75% | -11.72% | 19.16% | 18.02% | -6.54% |
| Dec 31, 2020 | 2.62% | 11.52% | 40.88% | — | 22.02% | -29.45% | -4.07% | 7.59% | 23.78% | 30.96% | 25.94% | -106.75% | -7.83% | 0.74% | 18.03% | -13.25% |
| Dec 31, 2019 | 18.11% | 11.06% | 26.42% | — | 42.33% | — | -4.61% | 12.22% | 22.95% | 31.18% | 28.05% | — | -2.82% | 8.36% | 15.84% | -14.82% |
| Dec 31, 2018 | -1.02% | 9.76% | 28.69% | — | 16.17% | — | — | 10.97% | 20.31% | 15.02% | 9.60% | — | -6.51% | 1.22% | 13.86% | -14.99% |
| Dec 31, 2017 | -7.71% | 9.37% | 23.20% | — | 10.50% | — | — | 7.27% | 18.76% | 23.57% | 24.74% | — | -12.30% | 2.14% | 5.01% | -26.01% |
| Dec 31, 2016 | -32.49% | 11.82% | 19.96% | — | 11.18% | — | — | 14.86% | 20.86% | 19.69% | 24.03% | — | -16.39% | -0.71% | 11.01% | -24.94% |
| Dec 31, 2015 | -19.73% | 9.28% | 13.13% | — | 14.83% | — | — | 16.14% | 8.71% | 13.03% | 26.00% | — | -17.78% | -4.89% | 10.08% | -31.48% |
| Dec 31, 2014 | -26.28% | 9.23% | 6.47% | — | 10.05% | — | — | 12.96% | 20.13% | 25.42% | 28.62% | — | -37.86% | -5.70% | 12.59% | -36.79% |
| Dec 31, 2013 | -17.36% | 10.80% | 7.15% | — | 11.25% | — | — | 16.52% | 20.57% | 28.08% | 29.38% | — | -7.38% | -8.87% | 12.63% | -43.55% |
| Dec 31, 2012 | -15.32% | 8.58% | 18.91% | — | 33.17% | — | — | 15.89% | 19.08% | 23.03% | 26.89% | — | 0.29% | -0.51% | 10.39% | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Software & Services)
ServiceNow Inc., net profit margin, long-term trends, comparison to sector (software & services)
| ServiceNow Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2025 | 13.16% | — |
| Dec 31, 2024 | 12.97% | 24.71% |
| Dec 31, 2023 | 19.30% | 21.78% |
| Dec 31, 2022 | 4.49% | 21.43% |
| Dec 31, 2021 | 3.90% | 25.04% |
| Dec 31, 2020 | 2.62% | 20.02% |
| Dec 31, 2019 | 18.11% | 21.61% |
| Dec 31, 2018 | -1.02% | 12.10% |
| Dec 31, 2017 | -7.71% | 15.36% |
| Dec 31, 2016 | -32.49% | 16.49% |
| Dec 31, 2015 | -19.73% | 14.57% |
| Dec 31, 2014 | -26.28% | 18.21% |
| Dec 31, 2013 | -17.36% | 20.55% |
| Dec 31, 2012 | -15.32% | 18.62% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Information Technology)
ServiceNow Inc., net profit margin, long-term trends, comparison to industry (information technology)
| ServiceNow Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2025 | 13.16% | — |
| Dec 31, 2024 | 12.97% | 20.64% |
| Dec 31, 2023 | 19.30% | 20.33% |
| Dec 31, 2022 | 4.49% | 22.35% |
| Dec 31, 2021 | 3.90% | 23.54% |
| Dec 31, 2020 | 2.62% | 19.65% |
| Dec 31, 2019 | 18.11% | 19.85% |
| Dec 31, 2018 | -1.02% | 18.58% |
| Dec 31, 2017 | -7.71% | 17.86% |
| Dec 31, 2016 | -32.49% | 17.79% |
| Dec 31, 2015 | -19.73% | 18.38% |
| Dec 31, 2014 | -26.28% | 19.38% |
| Dec 31, 2013 | -17.36% | 20.21% |
| Dec 31, 2012 | -15.32% | 20.08% |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).