ServiceNow shares slide despite earnings beat

Published: 2026-04-23 02:37:31 ET NOW

ServiceNow reported quarterly results that slightly beat expectations, although its stock tumbled over 12% in after-hours trading as investors grew concerned over the impact of the Middle East conflict on its operations. The group posted adjusted EPS of 97 cents, just beating the 96 cents anticipated, on revenue of $3.77bn, up 22% y-o-y. Net income reached $469m, marking a slight increase.

Esteban Tesson

Published on 04/23/2026 at 02:37 am EDT

The negative market reaction is attributed to a slowdown in subscription revenue growth, linked to delays in signing major contracts in the Middle East. This impact is estimated at approximately 75bp. Subscription revenues nevertheless came in at $3.67bn, marginally above forecasts, but proved insufficient to reassure investors regarding short-term momentum.Despite these uncertainties, ServiceNow raised its 2026 guidance, now forecasting subscription revenues of between $15.74bn and $15.78bn. The group is also pressing ahead with its artificial intelligence strategy, boasting a rapidly growing portfolio that could exceed $1bn. Simultaneously, it is ramping up investments, notably with the $7.75bn acquisition of Armis and the expansion of its partnership with Google Cloud.