ServiceNow shares fell as much as 17% in after-hours trading after the company narrowly missed adjusted earnings expectations. Adjusted earnings per share were $1.00, compared with analysts’ estimate of $1.02. The shortfall reflected lower interest income and debt costs from a recent acquisition.
Third-quarter revenue reached $4.11 billion, beating expectations. Revenue grew 20.5% year over year.
ServiceNow raised its full-year 2026 target for AI-related annual contract value to $1.7 billion, marking its second increase. The company also raised its full-year outlook for subscription revenue and free cash flow margin.