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ServiceNow Stock Plunges 15% After Hours Following Q3 Results

ServiceNow's shares dropped sharply in after-hours trading after the software group reported third-quarter revenue slightly above forecasts but guided to slower growth in contracted future revenue and thinner margins.

ServiceNow (NYSE: NOW) shares were down about 15% in after-hours trading at 8:46pm London time, changing hands at $127.08 against a regular-session close of $150.13. That is a fall of $23.05 a share.

The software group reported its third-quarter results after the US market closed, so the regular session did not trade on them. That session ended down 3.00%, from a previous close of $154.78.

Revenue was slightly ahead and earnings a touch short, measured against Yahoo Finance consensus, the average analyst forecast.

MetricReportedYahoo consensusDifference
Total revenue$4,106m$4.09bn (36 analysts)About +0.4%
Non-GAAP diluted EPS$1.00$1.02 (39 analysts)-$0.02

Yahoo labels its earnings figure as normalised EPS. Subscription revenue rose 21% to $3,988m, while GAAP earnings per share, which include all costs, fell to $0.27 from $0.48.

The guidance and margins sit alongside the drop. ServiceNow guided growth in current remaining performance obligations (cRPO), its contracted future revenue, to 18.5% in constant currency for the fourth quarter. The third quarter’s cRPO was $13.65bn, up 20.5%, or 21% in constant currency.

Margins narrowed. Non-GAAP subscription gross margin was 80%, compared with 83%, and GAAP operating margin was 9.5%, compared with 17%. The non-GAAP operating margin was 32.5%, compared with 33.5%.

The company also gave some better news. It raised its AI annual contract value target to $1.7bn from $1bn at the start of the year, and lifted its full-year free cash flow margin guidance by 100 basis points to 36%.

It guided full-year subscription revenue to $15,780m to $15,790m, and fourth-quarter subscription revenue to $4,245m to $4,255m.

NOW.US

The shares went into results on a strong run. They closed at $91.94 on the 23rd of July and at $150.13 today, a rise of about 63%, with a highest close of $158.96 on Friday.

Line chart of ServiceNow's daily share price from July to 28 October 2026, with results day marked.
ServiceNow’s daily close, July to 28 October 2026; the after-hours move is not in the daily series.

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