ServiceNow shares fell 27% on Thursday, their worst day on record, after third-quarter results underwhelmed investors, CNBC reported.
Revenue grew more than 20% to $4.11 billion, roughly in line with a $4.10 billion estimate from analysts polled by LSEG. Adjusted earnings were $1.00 per share, short of the $1.02 forecast.
The company slightly raised its full-year 2026 subscription revenue outlook to between $15.78 billion and $15.79 billion. Net new AI average contract value rose 65%.
Citi's Tyler Radke told CNBC the results were "a little bit uncharacteristic for ServiceNow standards, just in terms of the lack of upside."
Radke said investors are weighing the lack of an immediate payoff from the company's newly formed forward-deployed engineering team, which embeds in enterprises to build AI solutions. "It's just going to be a little bit longer of a waiting game," he said. "I think you got to wait until next year to really see that inflection."
CNBC reported that the results did little to ease "SaaSpocalypse" fears, the concern that new AI capabilities will upend traditional software business models.