Enterprise software company ServiceNow reported Q3 2026 revenue of $4.11 billion, slightly exceeding the market consensus of $4.09 billion. Subscription revenue reached $3.99 billion, representing a 21% year-over-year increase. However, adjusted earnings per share came in at $1.00, falling short of analysts' expectations of $1.02.
Following the release, ServiceNow shares dropped as much as 14% in after-hours trading as fourth-quarter guidance failed to meet analyst forecasts. The weaker outlook has intensified market concerns about artificial intelligence disrupting the traditional software industry.
ServiceNow Q3 Revenue Hits $4.11B, Shares Slide 14% on Weak Guidance and AI Concerns
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