ServiceNow Announces Third Quarter Financial Results

Oct 29

1. 22:58

   CNBC Technology

   ServiceNow stock plunges 27% after earnings, worst single-day performance since its IPO

   ServiceNow shares fell 27% on Thursday, marking the worst single-day performance on record, after the company's third-quarter results fell short of expectations, reigniting market fears about AI disruption. Revenue for the quarter rose more than 20% year over year to $4.11 billion, roughly in line with LSEG analysts' expectation of $4.10 billion, but adjusted earnings per share of $1.00 came in below the $1.02 expected. Although the company slightly raised its full-year 2026 subscription revenue forecast to $15.78 billion to $15.79 billion, with net new AI average contract value growing 65%, Citi analyst Tyler Radke noted that the investment in its newly formed forward-deployed engineering team has yet to deliver immediate returns, and the market will have to wait until next year to see an inflection point.

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2. 11:22

   Rohan Paul

   ServiceNow Beats Earnings Expectations, Yet Stock Still Falls 19% After Hours

   In the September quarter, ServiceNow's revenue grew 20.5% year over year to $4.106 billion, exceeding its own quarterly target, but the stock still fell 19% after hours as the market worried that AI agents are eroding its per-seat SaaS business. Signed revenue for the next 12 months grew 20.5% year over year to $13.65 billion, and the company expects that growth rate to slow to 18.5% this quarter, while total revenue guidance is about $4.25 billion, up about 23%. AI transaction volume grew 80% year over year, and the 2026 AI annual contract value target was raised from $1 billion in January to $1.7 billion, but it remains small compared with the expected subscription revenue of about $15.77 billion in 2026.

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3. 09:18

   SiliconANGLE

   ServiceNow's Q3 results were mixed, with shares falling 18% after hours

   ServiceNow's Q3 revenue grew 20.5% year-over-year to $4.11 billion, beating market expectations by $20 million, but adjusted earnings per share of $1 fell short of analysts' expected $1.02, and shares fell 18% after hours. Net new ACV from AI products grew 65% year-over-year, and the company raised its full-year AI ACV forecast to $1.7 billion, up 70% from January. Q4 revenue guidance is $4.25 billion to $4.26 billion, still below analysts' expected $4.36 billion.

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