Filing Flows › ServiceNow (NOW) › How it makes money
How ServiceNow (NOW) makes money
ServiceNow (NOW) made $4.1B of revenue in the third quarter 2026 (Q3 2026), +21% from a year earlier. Subscription brought in $4.0B (97%); Professional services and other brought in $118M (3%). Of every dollar of revenue, 71¢ was left as gross profit, 9¢ was left as operating profit, 7¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Subscription | $4.0B | 97.1% | +3% | +21% |
| Professional services and other | $118M | 2.9% | +7% | +9% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $4.1B | 100.0% |
| Cost of revenue | $1.2B | 29.5% |
| Gross profit | $2.9B | 70.5% |
| Operating expenses | $2.5B | 61.1% |
| Operating profit | $385M | 9.4% |
| Income tax | $93.0M | 2.3% |
| Net earnings | $277M | 6.7% |
| Operating cash flow | $839M | 20.4% |
| Free cash flow | $748M | 18.2% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $4.1B | +20% |
| Q2 2026 | $4.0B | +24% |
| Q1 2026 | $3.8B | +22% |
| Q4 2025 | $3.6B | +21% |
| Q3 2025 | $3.4B | +22% |
| Q2 2025 | $3.2B | +22% |
| Q1 2025 | $3.1B | +19% |
From ServiceNow's 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does ServiceNow make money?
ServiceNow (NOW) made $4.1B of revenue in the third quarter 2026 (Q3 2026), +21% from a year earlier. Subscription brought in $4.0B (97%); Professional services and other brought in $118M (3%). Of every dollar of revenue, 71¢ was left as gross profit, 9¢ was left as operating profit, 7¢ was left as net earnings.
What is ServiceNow's biggest business?
Subscription: $4.0B in the third quarter 2026, 97% of revenue, +21% from a year earlier.
What is ServiceNow's profit margin?
Net earnings were $277M, 6.7% of revenue, in the third quarter 2026; the operating margin was 9.4%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.