ServiceNow shares sink on earnings miss, weak Q4 revenue outlook

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ServiceNow (NOW) shares dropped 14% after reporting Q3 EPS of $1.00, missing estimates of $1.02, and Q4 revenue guidance of $4.25-4.26B, below expectations of $4.36B. Revenue grew 20.5% YoY to $4.11B, and subscription revenue increased 21% YoY to $3.99B. The company raised its AI ACV target for 2026 to $1.7B, up 70% from the start of the year.

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