ServiceNow Shares Drop Over 25% Following Weak Fourth-Quarter Growth Outlook
ServiceNow (NOW) shares experienced a significant sell-off, falling approximately 27% in a single day following the company's third-quarter earnings report. While subscription revenue grew 21% year-over-year to $3.99 billion—exceeding management guidance—investors reacted negatively to a decelerating outlook for current remaining performance obligations (cRPO). The company guided for fourth-quarter cRPO growth of just 18.5%, marking a notable slowdown from previous quarters. Management attributed the projected deceleration partly to timing issues, noting that strong early renewals in the third quarter pulled revenue forward, creating a headwind for the fourth quarter. Despite the sharp decline, historical data shows ServiceNow has frequently recovered from significant single-day drops, though recent volatility in 2025 suggests that large sell-offs are not always immediate buying opportunities.
Tickers: $NOW
Topics: cRPO earnings report future guidance revenue growth stock price drop