ServiceNow (NOW) shares fell 19% in premarket trading on October 29, 2026, after third-quarter results on October 28 and an expanded partnership with OpenAI. MarketWatch reported the drop was on track to be the largest on record. Revenue rose 20.5% to $4.11 billion, $20 million above consensus, while adjusted EPS of $1 came in below the $1.02 analyst consensus. The main pressure came from fourth-quarter revenue guidance of $4.25–$4.26 billion, below the $4.36 billion consensus. Net new AI annual contract value grew 65%, and the full-year AI ACV target was raised to $1.7 billion. The author does not see ServiceNow as an AI loser, but notes the OpenAI partnership is not exclusive and current RPO is forecast to grow only 18.5% in Q4.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
ServiceNowsoftwareartificial intelligenceOpenAI
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/28/2026 | 530.83 |
| Change that session | -0.09% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- ServiceNow shares plunge 24% after earnings revive AI disruption fears
ServiceNow shares fell 24% on Thursday, heading for their worst day ever, after third-quarter results revived fears that AI could disrupt traditional software business models. Revenue rose more than 20% to $4.11 billion, roughly in line with the $4.10 billion estimate, while adjusted EPS of $1.00 fell short of the $1.02 forecast. The company slightly lifted its 2026 subscription revenue outlook to between $15.78 billion and $15.79 billion, and net new AI average contract value jumped 65%. Citi's Tyler Radke said investors wanted quicker payoffs from the newly formed forward-deployed engineering team and that the inflection may not come until next year.
- ServiceNow Tumbles 19% as Slower Contract Growth Overshadows Raised AI Target; Salesforce Slides 6%, Workday Drops 5%
ServiceNow shares fell 19% in morning trading after Q3 revenue of $4.11 billion beat estimates, but Q4 revenue guidance of $4.25–4.26 billion came in below the $4.36 billion expected and contracted revenue growth (cRPO) is guided to 18.5% from 21%. The company raised its 2026 AI annual contract value target to $1.7 billion from $1.5 billion and its full-year free cash flow margin target to 36%, though adjusted EPS of $1.00 missed the $1.02 expected. Peers fell as well, with Salesforce down 6%, Workday down 5% and Adobe down 3%, as investors applied the contract slowdown to enterprise software demand broadly. The iShares software ETF (IGV) fell 5% while the SPDR S&P 500 ETF (SPY) was down 0.5%, showing the selling was concentrated in software. Year to date, ServiceNow is down 21%, Salesforce 13%, Workday 10% and Adobe 31%.
- ServiceNow’s stock slides as earnings miss clouds a raised AI outlook
- ServiceNow launches Control Tower Alliance to help enterprises adopt AI safely at scale
ServiceNow (NYSE: NOW) has launched the Control Tower Alliance, a new ecosystem of AI, cloud infrastructure, security and governance companies working with it to help enterprises adopt AI safely at scale. Founding members include Anthropic, AWS, Cisco, HiddenLayer, Kong, NVIDIA, Okta, OpenAI, Stripe, WitnessAI and Zenity. The alliance offers curated, pretested solutions pre-integrated with the Super Intelligence Control Tower, a centralized platform to discover, secure, govern, observe and measure enterprise AI. Partners can build on the platform, deliver certified pre-integrated solutions, or sell jointly through ServiceNow's global channels. The alliance will coexist with the ServiceNow Store and Workflow Data Network Partner Passport programs.
- ServiceNow delivers industry-first personal enterprise agent and policy enforcement with NVIDIA, extending AI governance across software and silicon
ServiceNow announced general availability of Arc, a personal long-running AI agent built for the enterprise and governed by its Super Intelligence Control Tower, with enforcement provided by NVIDIA OpenShell. ServiceNow's AI Passport, which carries business rules such as risk tolerance and permitted external services, will be read by NVIDIA OpenShell and BlueField DPU enforcement layers to approve or block agent actions. Arc can run inside a secure OpenShell runtime or on an employee's desktop, handles everyday work with local models and turns to frontier models for harder tasks to lower inference costs. Users assign Arc a goal, and it plans, executes across enterprise systems, checks its own work and keeps going until the task is finished.
- ServiceNow Climbs 5% After Denying Decagon Acquisition Interest; Salesforce Rises 4%, Palantir Dips
ServiceNow (NOW) shares rose 5% to $146.93 in midday trading after the company rejected reports that it planned to buy Decagon, a privately held maker of AI customer-service agents. President, Chief Product Officer and COO Amit Zavery said ServiceNow "has no interest or intention of purchasing Decagon," that its acquisition approach is unchanged, and that it prioritizes organic growth and sees no major strategic gaps requiring large deals. Salesforce (CRM) gained 4% to $245.39, while Palantir (PLTR) fell 0.9% to $199.07. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.9% and the Invesco QQQ Trust (QQQ) fell 0.7%, and the article notes that Salesforce's gain may rest more on sympathy than on company-specific news.
Related markets
Latest news
- With Nearly 4,300 Stores Nationwide, Is Bách Hóa Xanh Valued at Less Than VND 31,000 Billion?
As of October 29, Bách Hóa Xanh had 4,278 stores, up more than 1,700 since early 2026 and above MWG's plan to add 1,500. MWG's stake in its three chains, including Bách Hóa Xanh, AVA Kids and An Khang, is about VND 29,500 billion, implying a mechanical sum-of-the-parts valuation of under VND 31,000 billion (about USD 1.2 billion) for Bách Hóa Xanh, though the article says the actual value may differ due to conglomerate discounts. That is below the VND 35,500 billion (about USD 1.4 billion) valuation offered to CDH Investments in early 2024, when the chain had not yet broken even at company level. The chain targets revenue of about VND 55,500 billion and profit of VND 1,800 billion for 2026, and management expects to erase accumulated losses of about VND 7,000 billion within 2-3 years before an IPO.
- Rare Plunge for KOS: Hit Floor Price for 29 Consecutive Sessions, Market Cap Evaporates Nearly VND 6,000 Billion
KOS shares of Kosy Joint Stock Company closed at the floor price of VND 3,800 per share on October 29, down nearly 7%, marking the 29th consecutive session at the floor. More than 63 million shares were still waiting to be sold at the floor price, while only about 1.4 million shares changed hands. Compared with the close above VND 30,000 per share on September 18, the price has fallen more than 87%, shrinking market capitalization from over VND 6,500 billion to about VND 823 billion. Forced-sale notices kept appearing for shares held by Chairman Nguyễn Việt Cường, Mr. Nguyễn Trung Kiên, Kosy Real Estate and Leo Regulus, but most sell orders failed to match. Kosy said its real estate and renewable energy operations remain on schedule, and for the first half of 2026 it reported revenue of nearly VND 723 billion, up 9%, and profit after tax of about VND 15 billion.
- Nvidia Is Getting Dangerously Close to Getting Surpassed by Apple in Market Cap. Here's the Better Growth Stock to Buy Now.
Apple is closing in on Nvidia for the market cap lead, with its stock up 26% so far this year, more than double the market's return, and its market cap just passing $5 trillion. Apple's revenue is accelerating for a third straight year, with analysts expecting 15% growth for fiscal 2026 and trailing adjusted net margin topping 20% for the first time since 2012. Nvidia shares are up only 15% this year despite blowout financial results, with a market cap of $5.2 trillion and a valuation of less than 13 times next year's earnings. The author suggests Apple could pass Nvidia in market cap in the final two months of the year, but sees Nvidia's revenue and margin sustainability as the biggest question.
- Why Isn't VICI Properties Stock Bouncing Back After Strong Earnings?
VICI Properties reported third-quarter total revenues up 5.8% to $1.1 billion and AFFO up 4.3% to $0.62 per share, and raised its dividend 2.2% to $0.46 per share, its ninth straight annual increase. However, it recorded a $458 million increase in expected credit losses, largely tied to its lease with Caesars after a credit-rating downgrade of Caesars' senior secured debt. Caesars accounts for roughly 38% of VICI's rental revenue and carries nearly $11.7 billion in debt, which the article cites as a main reason the shares have not rebounded. The stock sits more than 20% below its 52-week high, and the author argues Caesars' new owner is more likely to sell some operations to cut debt, with new tenants signing leases near current rents.
- Alphabet's Multiple Futures Now Cost Less to Own
Google Cloud revenue rose 103% to $30.7 billion in the quarter, and Alphabet's operating profit roughly tripled, helped by sales of its custom AI chips, TPUs, to outside customers. However, the company expects to spend $195 billion to $205 billion on capital projects this year, pushing free cash flow negative for the quarter, and its long-term debt has climbed to about $125 billion, nearly six times a year earlier. Google Services revenue grew 11%, down from 15% the previous quarter, and search revenue came in short of expectations. The article argues that if AI demand cools before the new data centers pay off, the debt would stay on the books, and notes the shares now cost about 10% less than before the report.
- Why Huntington Ingalls Stock Popped on Thursday
Huntington Ingalls shares surged 12.3% by 12:10 p.m. ET Thursday after the shipbuilder beat earnings projections. Q3 sales grew 11% to $3.5 billion, above expected sales below $3.4 billion, and earnings per share came in at $5.48 versus analysts' forecast of $4.36. Operating profit margin rose two full percentage points to 7%, and earnings grew 49%, while free cash flow reached $429 million versus $16 million a year earlier. The company forecasts roughly $13.7 billion in sales and about $550 million in free cash flow this year. The author notes the stock trades at about 20x expected free cash flow and a P/S of 0.8x, making it one of the cheaper defense stocks.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.