ServiceNow shares fell after quarterly results and a weaker-than-expected revenue outlook

AI · First reported 29 Oct, 01:18 · Updated 15:51

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

ServiceNow’s third-quarter revenue grew more than 20%, but adjusted earnings missed analyst forecasts and its fourth-quarter revenue outlook was below expectations. Reports gave different figures for the share decline; both described investor concerns about the timing of returns from AI investments.

ServiceNow reported third-quarter revenue of $4.11 billion, up 20.5% year over year. Adjusted earnings were $1 per share, below the cited analyst forecasts of $1.02.
The company forecast fourth-quarter revenue of $4.25 billion to $4.26 billion, below the $4.36 billion analyst estimate cited by SiliconANGLE.
ServiceNow said net new AI annual contract value rose 65% year over year and raised its full-year AI ACV projection to $1.7 billion.
The company announced a planned ChatGPT plugin with OpenAI and a partner group that includes Nvidia, focused on its Super Intelligence Control Tower.
The reported share decline varied: SiliconANGLE said shares fell 18% in after-hours trading, while CNBC reported a 27% fall on Thursday.

Summary written by Lux AI from 3 articles

Key facts

Third-quarter revenue: $4.11 billion, up 20.5% year over year
Adjusted earnings: $1 per share; analyst forecasts cited were $1.02
Fourth-quarter revenue forecast: $4.25 billion to $4.26 billion; analysts projected $4.36 billion
Full-year AI ACV projection: Raised to $1.7 billion
Reported share declines: 18% in SiliconANGLE’s after-hours report; 27% in CNBC’s Thursday account