ServiceNow shares slid 24 percent on Oct. 29 after the company's third-quarter results missed expectations, CNBC reported. It added that worries were gaining traction again that AI will shake up the software industry.
According to the report, ServiceNow's third-quarter revenue rose more than 20 percent to $4.11 billion. That was roughly in line with analysts' estimate of $4.10 billion compiled by LSEG. Adjusted earnings per share were $1, below the $1.02 estimate. Average new AI annual contract value also rose 65 percent, but the stock fell sharply.
CNBC said the results failed to allay so-called "SaaSpocalypse" fears that new AI capabilities will undermine existing software business models.
ServiceNow slightly raised its 2026 full-year subscription revenue forecast to $15.78 billion to $15.79 billion.
Tyler Radke (타일러 래드키), a Citi analyst, said, "It is an un-ServiceNow-like set of results in that there was nothing that exceeded expectations." He cited investor anxiety that ServiceNow's recent investment in its field deployment engineering, or FDE, team is not translating directly into results.
Chi-gyu Hwang
delight@d-today.co.kr