ServiceNow shares fall 19% after hours despite beating quarterly targets

ServiceNow shares fell 19% after hours after its September quarter results, even though the company beat its own quarterly targets, according to a post by Rohan Paul on X. Revenue rose 20.5% to $4.106 billion, and current remaining performance obligations grew 20.5% to $13.65 billion.

The post says the company expects that growth to slow to 18.5% this quarter. The post also says ServiceNow targets $1.7 billion in AI annual contract value for 2026, which is small beside roughly $15.77 billion of expected subscription revenue. The fact record attributes the drop to investor worries that AI agents will erode seat-based revenue, but the post itself does not state that cause.