Business

ServiceNow shares plunge 24% after earnings revive AI disruption fears

CNBC·Oct 29, 2026 · 9:58 AM CT
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Readthrough summary

ServiceNow stock dropped 24% on Thursday, heading for its worst day on record, after the enterprise software company's third-quarter report underwhelmed investors.

Revenue grew more than 20% to $4.11 billion, roughly matching the $4.10 billion analysts expected, but adjusted earnings of $1.00 per share came in under the $1.02 forecast. The company slightly raised its 2026 subscription revenue outlook to $15.78-$15.79 billion, and net new AI contract value jumped 65%.

"This was a little bit uncharacteristic for ServiceNow standards, just in terms of the lack of upside," Citi's Tyler Radke told CNBC. He said investors are uneasy that the company's new forward-deployed engineering team, which embeds with customers to build AI tools, will take longer to pay off. The results did little to calm so-called "SaaSpocalypse" worries about AI disrupting software business models.

Key points

  • Stock down 24%
  • Q3 revenue $4.11B (+20%+)
  • Adjusted EPS $1.00 vs. $1.02 expected

Summary written by Readthrough from the original article. The full story, with photos and any updates, is at CNBC.

Read the original at CNBC

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