{
  "id": 16986840,
  "title": "ServiceNow shares drop 18% after mixed earnings results",
  "url": "https://urgent.news/2026/10/29/servicenow-shares-drop-18-after-mixed-earnings-results",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-29T01:18:54.000Z",
  "source": {
    "name": "SiliconANGLE",
    "slug": "siliconangle",
    "url": "https://siliconangle.com/2026/10/28/servicenow-shares-drop-18-after-mixed-third-quarter-results/"
  },
  "original_language": "en",
  "account": "Shares of ServiceNow Inc. experienced an 18% drop in after-hours trading following the release of mixed quarterly results. While the company exceeded its internal guidance, it fell short of analysts' expectations. ServiceNow, known for its ITSM platform, offers various products that simplify tasks like managing customer data and creating AI agents. The company earned $1.04 billion in adjusted operating income for the third quarter, resulting in $1 per share in adjusted earnings. Analysts projected $1.02 per share. Revenue grew 20.5% year-over-year to $4.11 billion, surpassing the consensus estimate by $20 million. This growth was fueled by large customer deals, with 19 deals valued over $5 million, a 135% increase from the previous year. CEO Bill McDermott noted a 65% year-over-year increase in AI product net new ACV. Key AI initiatives include EmployeeWorks, an employee portal, and Super Intelligence Control Tower, a platform that safeguards AI assets. EmployeeWorks reached $100 million in ACV within three quarters of its launch. Super Intelligence Control Tower's usage metric grew by 500% month-over-month, and the software expects \"true acceleration\" in AI business next year. The company raised its full-year AI ACV projection to $1.7 billion, a 70% increase from January. Despite this, the fourth-quarter revenue forecast was below expectations, with projections of $4.25 billion to $4.26 billion compared to analyst estimates of $4.36 billion. ServiceNow announced AI partnerships with OpenAI Group PBC and Nvidia Corp., focusing on expanding AI capabilities and go-to-market strategies.",
  "summary": "Shares of ServiceNow Inc. dropped 18% in after-hours trading today after it posted quarterly results that topped its internal guidance, but mostly fell short of analyst expectations. ServiceNow is best known for its ITSM, or information technology service management, platform. Enterprise IT teams use it to deliver technical support to employees and coordinate infrastructure upgrades. […] The post…",
  "key_points": [
    "ServiceNow shares drop 18% in after-hours trading",
    "Company beats internal guidance, misses analyst expectations",
    "Revenue grows 20.5% YoY to $4.11 billion"
  ],
  "editors_take": "The disconnect between surging AI product adoption and a conservative revenue forecast signals that even rapid technological growth cannot immediately offset the high expectations held by Wall Street analysts.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}