ServiceNow Shares Plunge 24% After $4.11 Billion Q3 Revives AI Disruption Fears
Updated
Updated · CNBC · Oct 29
ServiceNow Shares Plunge 24% After $4.11 Billion Q3 Revives AI Disruption Fears
3 articles · Updated · CNBC · Oct 29
Summary
ServiceNow tumbled 24% on Thursday, putting the stock on track for its worst day ever after third-quarter results failed to deliver the upside investors typically expect.
Revenue rose more than 20% to $4.11 billion, roughly matching estimates, while adjusted earnings missed at $1.00 a share versus the $1.02 consensus.
That muted quarter did little to ease "SaaSpocalypse" worries that new AI tools could disrupt traditional software models, despite ServiceNow nudging its 2026 subscription revenue outlook up to $15.78 billion-$15.79 billion.
AI momentum was not enough to calm investors: net new AI average contract value jumped 65%, but analysts said the payoff from ServiceNow's forward-deployed engineering team may not show up until next year.