ServiceNow Q3 revenue $4.11B beats estimates but soft Q4 guidance sends shares down 14%+ after hours (Oct 28)
What happened
ServiceNow reported Q3 2026 results after the close on Oct. 28: revenue of $4.11 billion, up 20.5% year over year and slightly above the $4.09 billion consensus, with subscription revenue of $3.99 billion, up 21%. But adjusted EPS came in at $1.00 versus the $1.02 analysts expected, GAAP net income fell 44.8% to $277 million ($0.27 per share, versus $0.48 a year earlier), and fourth-quarter guidance — subscription revenue of $4.25–$4.26 billion and cRPO growth guided at about 18.5% — came in below expectations. Shares fell more than 14% in after-hours trading, with Bloomberg-cited coverage saying the sales outlook renewed market concerns about AI disrupting the software industry.
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Start your free 14-day trialWho’s affected
- NOW (ServiceNow) directly: Q4 guidance miss drove a 14%+ after-hours drop. Enterprise application software peers (CRM, WDAY, MSFT) — renewed AI-disruption read-through for the SaaS model. AI-infrastructure names (NVDA and hyperscalers) indirectly — the reaction underscores the market's split between AI winners and software names seen as exposed to AI displacement.