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Home/Tech/ServiceNow shares fall about 15% after hours as profit narrowly misses
VERIFIEDBy Xavier Rivera·Wednesday, October 28, 2026 at 8:40 PM AST·1 min read

ServiceNow shares fall about 15% after hours as profit narrowly misses

ServiceNow reported third-quarter subscription revenue of $3.988 billion, up 21%, and raised its AI contract target to $1.7 billion. Shares still fell about 15% in extended trading after adjusted profit missed estimates by 2 cents, CNBC reported.

Source:ServiceNow
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ServiceNow shares fall about 15% after hours as profit narrowly misses
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TL;DRAI · 60 sec read

ServiceNow's Q3 subscription revenue rose 21% to $3.988 billion and total revenue rose 20.5% to $4.106 billion. Adjusted EPS of $1.00 missed the $1.02 LSEG estimate, CNBC reported. It guided Q4 subscription revenue to $4.245 billion to $4.255 billion and raised its 2026 AI annual contract value target to $1.7 billion.

ServiceNow shares fell about 15% in extended trading on Wednesday, Oct. 28, after the company's third-quarter adjusted profit came in just below Wall Street's estimate, CNBC reported.

The quarter

Subscription revenue rose 21% from a year earlier to $3.988 billion, and total revenue rose 20.5% to $4.106 billion, the company said. Current remaining performance obligations, or contracted revenue due over the next 12 months, rose 20.5% to $13.65 billion.

Adjusted earnings were $1.00 a share, missing the $1.02 LSEG consensus, according to CNBC. GAAP net income was $277 million, down from $502 million a year earlier.

Guidance
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ServiceNow forecast fourth-quarter subscription revenue of $4.245 billion to $4.255 billion. The FactSet consensus called for $4.25 billion, CNBC reported. It raised its full-year subscription revenue outlook to $15.78 billion to $15.79 billion and its free cash flow margin target to 36%.

AI push

The company raised its 2026 target for AI annual contract value to $1.7 billion, up from $1 billion at the start of the year. It also announced an expanded partnership with OpenAI, starting with a ServiceNow plugin for ChatGPT.
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"Customers are also rapidly increasing their use of agentic AI," President and CFO Gina Mastantuono said, adding that year-to-date consumption in production is up more than 13 times from a year earlier.
Why this mattersAI · ~100 words

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