ServiceNow Shares Have Worst Day Ever After Q3 Results

Oct 29, 2026
ServiceNow shares fell 27% after third quarter adjusted earnings missed analyst estimates, putting the stock on course for its worst session on record.

ServiceNow shares fell 27% Thursday, putting the stock on course for its worst session on record, according to CNBC. Third quarter revenue rose more than 20% to $4.11 billion, close to the $4.10 billion analyst estimate, while adjusted earnings of $1.00 per share missed the $1.02 forecast.

Subscription revenue reached $3.99 billion, up 21% from a year earlier. Current remaining performance obligations rose 20.5% to $13.65 billion, while net new AI annual contract value increased 65%.

In its results release, ServiceNow raised its 2026 subscription revenue forecast to $15.78 billion to $15.79 billion, but guided fourth-quarter cRPO growth of 18.5%, down from 20.5% in the third quarter. The company also increased its annual target for net new AI contract value to $1.7 billion and raised its free cash flow margin target to 36%.

"This was a little bit uncharacteristic for ServiceNow standards, just in terms of the lack of upside," Citi analyst Tyler Radke told CNBC.

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