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● LIVE Updated 4h ago · 13 sources tracked

ServiceNow shares plunge 27% to worst day ever after earnings revive AI disruption fears

ServiceNow shares dropped 27% following third-quarter earnings that fell short of expectations, marking the worst single-day drop in the company's history and making the stock the worst performer in the S&P 500. The disappointing quarterly sales outlook and a missed key revenue measure reignited investor concerns about artificial intelligence disruption across the software sector. Fortinet shares also tumbled 25% as Q3 earnings reports dragged down the broader software and cybersecurity markets.

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  • ✓ ServiceNow shares plunged 27% following third-quarter earnings that fell short of expectations.
  • ✓ The steep decline marked the worst single-day drop in the history of ServiceNow.
  • ✓ ServiceNow stock became the worst performer in the S&P 500 after a key revenue measure fell short.
  • ✓ Fortinet shares dropped 25% as Q3 earnings reports sent the broader software sector lower.
🛡️ Source Corroboration: 13 independent reporting domains (100% confidence) ⏱ Read time: ~2 min

What changed

ServiceNow shares experienced their worst trading day on record after quarterly results and sales outlook disappointed investors.

Live updates

  1. ServiceNow Shares Plunge 27% on Weak Outlook

    ServiceNow shares dropped 27% following third-quarter earnings that fell short of expectations, marking the worst single-day drop in the company's history and making the stock the worst performer in the S&P 500. The disappointing quarterly sales outlook and a missed key revenue measure reignited investor concerns about artificial intelligence disruption across the software sector. Fortinet shares also tumbled 25% as Q3 earnings reports dragged down the broader software and cybersecurity markets.

    Why it matters

    The sharp selloff highlights growing Wall Street anxiety regarding how artificial intelligence advancements will impact traditional software business models. Investors scrutinized quarterly subscription sales and key revenue metrics closely, reacting harshly when results missed projections despite broader revenue growth. Sector peers like Fortinet also faced steep drops following their own quarterly reports.

    What is confirmed

    • ServiceNow shares plunged 27% following third-quarter earnings that fell short of expectations.
    • The steep decline marked the worst single-day drop in the history of ServiceNow.
    • ServiceNow stock became the worst performer in the S&P 500 after a key revenue measure fell short.
    • Fortinet shares dropped 25% as Q3 earnings reports sent the broader software sector lower.

    Still unconfirmed

    • Strong 20% revenue growth and AI expansion may make the sharp stock dip a buying chance for SaaS investors.

    What to watch next

    • Quarterly subscription sales performance in upcoming financial periods
    • Broader software sector reactions to artificial intelligence disruption fears
    Sources used for this update (15)
    1. Bloomberg — ServiceNow Falls After Quarterly Sales Outlook Revives AI Fears
    2. Barron's — ServiceNow Fans AI Fears on Quarterly Subscription Sales Outlook
    3. CNBC — ServiceNow shares plunge 25% after earnings revive AI disruption fears
    4. CTech — "A gorgeous situation": ServiceNow's CEO celebrates a shrinking workforce
    5. Seeking Alpha — ServiceNow's Earnings: Why 20% Growth Fuels A 17% Selloff (NYSE:NOW)
    6. Yahoo Finance — ServiceNow stock sinks in worst day ever, Fortinet shares drop as Q3 earnings reports send software sector lower
    7. CNBC — ServiceNow shares plunge 27% to worst day ever after earnings revive AI disruption fears
    8. Barron's — ServiceNow Stock Is Worst in S&P 500 After a Key Revenue Measure Fell Short
    9. www.cnbc.com — ServiceNow (NOW) earnings Q3 2026 - CNBC
    10. rocketnews.com — ServiceNow shares plunge 27% to worst day ever after earnings ...
    11. finance.yahoo.com — ServiceNow stock sinks in worst day ever, Fortinet shares ...
    12. aventure.vc — ServiceNow shares plunge 27% to worst… - aVenture Research
    confidence 100%
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