ServiceNow Shares Drop Despite Strong Earnings and AI Push
ServiceNow's stock fell over 2% in after-hours trading despite reporting Q4 revenue of $3.57 billion, a 20.5% year-over-year increase, and adjusted earnings of 92 cents per share, both surpassing analyst expectations. The company's 2026 subscription revenue forecast of $15.53-$15.57 billion also exceeded Wall Street estimates.
Strategic moves include partnerships with Anthropic and OpenAI to integrate AI chatbots into its platform, along with a $5 billion share buyback authorization and the $7.75 billion acquisition of cybersecurity firm Armis. Despite these bullish signals, the stock has declined 28% in 2025 and remains down 15.39% year-to-date.