ServiceNow Shares Slide Despite Strong Quarterly Performance

ServiceNow US81762P1021

In a striking market reaction, ServiceNow’s stock experienced significant downward pressure following the release of its fourth-quarter results. This occurred even as the company reported figures that surpassed expectations and raised its forward guidance, highlighting the current investor scrutiny on highly-valued software and artificial intelligence equities.

For the quarter ending December 31, 2025, ServiceNow announced revenue of $3.57 billion, a figure that came in ahead of the analyst consensus estimate of approximately $3.53 billion. This represents a year-over-year increase of 20.7%. The company’s subscription revenue, a critical metric for its recurring business, climbed 21% to reach $3.47 billion.