PomegraServiceNow Stock Falls 15% After Earnings Miss
Why is ServiceNow stock down today?
ServiceNow (NOW) stock fell about 15% in after-hours trading on Wednesday from its $150.13 close after a small earnings miss and a fourth-quarter outlook that disappointed investors.
Key numbers
| Q3 total revenue | $4.11B+20.5% YoY; beat $4.09B estimate |
|---|---|
| Q3 adjusted EPS | $1.00$0.02 below $1.02 estimate |
| Q4 cRPO growth outlook | 18.5%vs 20.5% in Q3 |
| Q4 outlook vs estimates | Reports differ[2] says below $4.36B estimate; Bloomberg says in line |
| 2026 AI contract value target | $1.7Braised, +70% since start of year (per [2]) |
| After-hours price | $124.45-17.1% vs $150.13 close (per [5]) |
What happened
ServiceNow (NOW) stock fell about 15% in after-hours trading on Wednesday from its $150.13 close after a small earnings miss and a fourth-quarter outlook that disappointed investors. Profit per share, before one-time items, was $1.00, two cents below the $1.02 analysts expected, while sales of $4.11 billion beat forecasts. The company expects the value of contracted sales due within a year (cRPO) to grow 18.5%, slower than the 20.5% in the third quarter. It also raised its 2026 AI sales target to $1.7 billion, and reports of the drop ranged from 14% to 17%.
Why it matters
ServiceNow's cooler outlook matters because its software runs IT and customer-service work at many large companies. Sales still grew about 20% from a year ago, but the slower forecast revived worries that AI could eat into software makers' business. Investors are now watching whether the company's growing AI sales can offset that slowdown.
Who this affects
- MarketbearishMedium impact
- Software investors face fresh worries about slowing growth.
- CompanybearishHigh impact
- ServiceNow shareholders face a sharp after-hours loss.
- CompetitorsneutralLow impact
- Rivals may face the same questions about AI and growth.
- IndustrybearishMedium impact
- Software makers face more pressure to show AI is driving growth.
ServiceNow vs Salesforce, Workday, Adobe
How we got here
ServiceNow closes regular session at $150.13 before releasing results.
ServiceNow reports Q3 revenue of $4.11B and raises its full-year subscription revenue outlook.
Shares drop 14% to 17% in after-hours trading on the weaker Q4 outlook.
What to watch
- How ServiceNow shares trade in Thursday's regular session after the after-hours drop.2026-10-29
- Whether cRPO growth lands near the 18.5% outlook in the fourth quarter.Q4 2026
- Progress toward the raised $1.7B AI annual contract value target for 2026.Q4 2026
Educational content only. Not investment advice.
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