ServiceNow shares fall 25% after quarterly report: revenue of $4.11 billion, adjusted earnings of $1.00 per share
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
The market punishes enterprise software even for meeting expectations, fearing that SI will change its business.
According to CNBC, ServiceNow shares were heading for the company's worst day ever. Revenue rose more than 20% to $4.11 billion against an expected $4.10 billion (LSEG), and adjusted earnings came to $1.00 per share against a forecast of $1.02. The company slightly raised its 2026 subscription revenue outlook to $15.78–15.79 billion; net new average contract value for SI products rose 65%. Citi analyst Tyler Radke linked the reaction to the fact that there is no quick payoff yet from the company's new team of engineers embedded with customers. The report, CNBC says, renewed fears that new SI capabilities will undermine the traditional software model.
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