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ServiceNow Shares Drop After Q3 Earnings Miss Forecasts

By Drooid · Oct 29, 2026 · How we work

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Summary

ServiceNow shares plunged up to 25% after Q3 earnings missed forecasts.
Revenue rose 20% to $4.11 billion, beating the $4.09 billion analyst estimate.
Adjusted earnings were $1.00 per share, below the $1.02 consensus.
ServiceNow raised its 2026 AI annual contract value target to $1.7 billion.
The company announced an OpenAI partnership adding a ChatGPT plugin and Control Tower Alliance.

History

IBM’s AI push began with the 2014 launch of the Watson unit, funded with $1 billion and targeting $10 billion annual revenue. After the 2011 Jeopardy! win, the platform failed to secure profitable products, prompting the 2022 sale of Watson Health. ServiceNow’s 2024 AI partnership with OpenAI and Microsoft shows the same enterprise-software drive toward costly AI collaborations.

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IBM’s AI push began with the 2014 launch of the Watson unit, funded with $1 billion and targeting $10 billion annual revenue. After the 2011 Jeopardy! win, the platform failed to secure profitable products, prompting the 2022 sale of Watson Health. ServiceNow’s 2024 AI partnership with OpenAI and Microsoft shows the same enterprise-software drive toward costly AI collaborations.

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