GoKawiilServiceNow stock falls 25% despite revenue meeting estimates
ServiceNow's shares dropped 25% on Thursday, marking the company's worst trading day ever, after third-quarter revenue of $4.11 billion roughly matched estimates but adjusted earnings of $1.00 per share missed the $1.02 forecast. The company also raised its full-year 2026 subscription revenue guidance to $15.78-$15.79 billion and reported a 65% jump in net new AI contract value.
GoKawiil's interpretation of the reporting above, not reported fact.
The sharp selloff, despite in-line revenue and raised guidance, suggests investors remain anxious about whether traditional enterprise software firms can keep pace as AI reshapes how businesses buy and deploy technology. Citi analyst Tyler Radke suggests the market wanted faster returns from ServiceNow's new forward-deployed engineering team, implying confidence in AI monetization may not return until clearer results emerge next year.
- ServiceNow shares fell 25%, its worst single-day decline on record.
- Revenue met expectations but adjusted EPS of $1.00 missed the $1.02 forecast.
- Investors appear to be pricing in broader fears about AI disrupting SaaS business models.
Source: cnbc.com — Samantha Subin, 2026-10-29
Published there as: “ServiceNow shares plunge 25% after earnings revive AI disruption fears”
Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.