ServiceNow shares fell nearly 16% in after-hours trading after the company reported an earnings miss and signs of slowing contract growth. The results overshadowed a raised AI contract target and a pipeline of new AI deals.
ServiceNow shares fell nearly 16% in after-hours trading on Wednesday after the company posted mixed third-quarter results. Investors were not convinced of its artificial-intelligence momentum.
The company's pipeline of new AI deals was overshadowed by an earnings miss and evidence of slowing contract growth ahead.
However, ServiceNow raised its full-year AI contract target to $1.7 billion as high-dollar enterprise deals surged. Even so, an uptick in multimillion-dollar AI deals was not enough to win over software skeptics.
Source: MarketWatch (snippet-based)
Trading involves risk.