# ServiceNow Shares Fall More Than 14% After Q4 Forecast Misses

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/42947
Published: 2026-10-28T20:58:05.000Z
Updated: 2026-10-28T20:58:05.000Z
Section: Business

> Third-quarter revenue beat estimates by $20 million, but adjusted earnings per share missed by 2 cents. Subscription revenue grew 21% year over year.

ServiceNow shares fell more than 14% in after-hours trading after its fourth-quarter outlook missed analyst expectations, outweighing a third-quarter revenue result that edged past forecasts.

Revenue for the third quarter of 2026 was $4.11 billion, compared with the $4.09 billion expected. That put sales $20 million above the estimate. Subscription revenue reached $3.99 billion, up 21% from a year earlier.

Adjusted earnings came to $1 per share, 2 cents below the $1.02 analysts expected. That left third-quarter results mixed: revenue beat its estimate while adjusted earnings per share fell short. The fourth-quarter outlook added a separate concern about performance in the coming quarter.

ServiceNow’s sales outlook also renewed worries about AI’s impact on software companies. The after-hours decline followed that forecast shortfall, even though revenue for the reported quarter was slightly higher than expected. The results paired 21% subscription growth with a below-expectations view of the next quarter.