ServiceNow shares slump 27% as weak cRPO guidance overshadows AI growth
ServiceNow's CFO rejects the idea that AI is disrupting enterprise software. Shares fell 27% after third-quarter results, according to Seeking Alpha.
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what happened
According to Seeking Alpha, ServiceNow shares closed down 27% on Thursday, erasing three months of gains in a single session. The company reported third-quarter revenue growth above 20% year over year, but its fourth-quarter cRPO and subscription growth guidance came in 120 and 40 basis points below expectations.
Chief Financial Officer Gina Mastantuono said the narrative that AI disrupts enterprise software is false. She argued that customers are deploying AI at scale and that demand for core workloads remains strong.
Bank of America and J.P. Morgan analysts still lean positive. The first highlighted nnACV up 65% and higher 2026 ACV guidance, though it does not fully accept management's explanation for the weak quarter. The second sees the cRPO slowdown as partly temporary.
why it matters
The sell-off hit the broader enterprise software segment, and investors are now testing how much AI is really accelerating revenue. The next-year outlook will be the key test, with J.P. Morgan preliminarily estimating growth of around 19% for FY27.
market impact
ServiceNow and US software stocks: weak cRPO guidance pressures the shares, while AI growth provides partial support.
- ServiceNow shares mixed — weak cRPO guidance weighs, while AI product growth supports interest
tags
instruments
sources
- ServiceNow CFO says AI disruption to enterprise software narrative is false — Seeking Alpha, 31 October 2026 at 12:00 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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