# ServiceNow stock crashes following disappointing third-quarter results

- Topic: business
- Source: [CNBC](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html)
- Published: 2026-10-29
- Original: https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html
- Language: en
- Image: https://image.cnbcfm.com/api/v1/image/108302531-1778009344248-McDermott-1.jpg?v=1778009579&w=1920&h=1080

## At a glance

- ServiceNow shares fell 24% after quarterly earnings failed to satisfy investor demand for growth.
- Adjusted earnings of $1.00 per share missed the analyst consensus forecast of $1.02.
- The company reported a 65% increase in average contract values for new AI-related deals.
- Market concerns persist regarding whether AI will ultimately disrupt existing enterprise software models.

## Sources

- [CNBC](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html)

## The story

ServiceNow shares plummeted 24% on Thursday, marking a potentially record-breaking single-day loss for the enterprise software provider. The decline followed third-quarter earnings that failed to meet investor expectations, reigniting fears that artificial intelligence could disrupt traditional software business models.

While revenue grew over 20% to reach $4.11 billion, the company's adjusted earnings of $1.00 per share fell short of the $1.02 forecast by analysts. Despite these misses, the company slightly increased its full-year 2026 subscription revenue outlook and reported a 65% jump in the average contract value for new AI deals.

Analysts suggest the market is reacting to a perceived delay in the financial payoff from massive AI investments. Specifically, investors appear uneasy regarding the time required for the company's new engineering teams to embed AI solutions within enterprises and generate significant returns. Citi analyst Tyler Radke noted that a clear inflection point in performance may not be visible until next year.

> Summary by Daily Read Bytes. [Read the original source](https://www.cnbc.com/2026/10/29/servicenow-now-earnings-q3-2026.html)