U.S. Software Index Falls as Fortinet and ServiceNow Shares Slide

U.S. software shares fell Thursday, with Fortinet and ServiceNow among the sharp decliners as Microsoft reversed an early gain despite reporting strong Azure growth and higher revenue.

The Dow Jones U.S. Software Index also fell Thursday. Fortinet shares slid after the company reported slower product growth and services revenue below expectations, despite beating overall earnings estimates.

ServiceNow also fell following its earnings report. Its 2026 subscription revenue outlook increased slightly to $15.78 billion-$15.79 billion, while adjusted earnings were $1 a share, below the $1.02 estimate. ServiceNow's Thursday earnings-related slide also revived concerns that AI could pressure established software businesses.

Microsoft gave up an early advance even as its Azure business expanded 48%, topping expectations, and revenue increased 19% to $92.28 billion.