ServiceNow earnings miss forecasts, AI fears drive 24% stock drop
ServiceNow’s stock fell 24% on Thursday after its third-quarter results disappointed investors, reigniting concerns about AI disrupting traditional enterprise software. Revenue grew over 20% to $4.11 billion, matching analyst estimates of $4.10 billion, but adjusted earnings came in at $1.00 per share, below the forecast of $1.02.
Key points
- ServiceNow’s stock dropped 24% after Q3 earnings missed analyst expectations for adjusted earnings per share
- Revenue grew 20% to **$4.11 billion**, matching estimates, but earnings fell short of the **$1.02** forecast
- Investors question AI investments’ payoff, with Radke of Citi calling for delayed results until 2027
Analyst Tyler Radke of Citi noted the lack of immediate returns from ServiceNow’s new forward-deployed engineering team, which builds AI solutions for enterprises. Radke suggested the market wanted faster results, calling it a ‘waiting game’ that may only show progress in 2027. The stock decline follows broader ‘SaaSpocalypse’ fears about AI eroding legacy software revenue models.
ServiceNow shares plunge 24% after earnings revive AI disruption fears
CNBC Technology · 29 October 2026
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