{"version":1,"type":"story","url":"https://digestai.news/story/servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop","json":"https://digestai.news/story/servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop.json","markdown":"https://digestai.news/story/servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop.md","slug":"servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop","headline":"ServiceNow earnings miss forecasts, AI fears drive 24% stock drop","summary":"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**.\n\nAnalyst 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.","keyPoints":["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"],"whyItMatters":"Weaker-than-expected earnings from a major enterprise software player signals growing investor caution about AI’s impact on legacy SaaS revenue streams.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["ServiceNow"],"models":[],"people":["Tyler Radke"]},"firstPublishedAt":"2026-10-29T14:58:03Z","updatedAt":"2026-10-29T14:58:03Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"CNBC Technology","title":"ServiceNow shares plunge 24% after earnings revive AI disruption fears","url":"https://cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html","publishedAt":"2026-10-29T14:58:03Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":null,"cite":{"text":"Digest AI, \"ServiceNow earnings miss forecasts, AI fears drive 24% stock drop\", 29 October 2026, https://digestai.news/story/servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop","publisher":"Digest AI","title":"ServiceNow earnings miss forecasts, AI fears drive 24% stock drop","datePublished":"2026-10-29T14:58:03Z","url":"https://digestai.news/story/servicenow-earnings-miss-forecasts-ai-fears-drive-24-stock-drop"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}