ServiceNow (NOW) fell 19.6% in premarket trading to about $121 after reporting adjusted EPS of $1.00, below the $1.02 consensus, even though revenue of $4.11 billion, up 20.5%, beat the $4.095 billion consensus. The bigger concern, according to the article, is fourth-quarter cRPO growth guided to 18.5%, below the roughly 19.8% analysts expected. Interest expense rose to $81 million from $6 million a year earlier because of borrowing for the Armis deal, which held EPS growth to 5%. After the stock rose about 43% in three months, its forward P/E, which went from 20x in April to 33x at Wednesday's close, would fall to about 27x in premarket trading, below its 53x five-year average. The article says the late-January fourth-quarter report will be the next test of the company's outlook.
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MSFT
▼ Likely negativeMicrosoft
Relevance: medium
| 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.
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