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ServiceNow Tops Expectations but Faces Market Headwinds

ServiceNow beats Q4 earnings and raises guidance, driven by AI demand and partnerships, but shares slip amid investor growth concerns.
ServiceNow delivered strong fourth-quarter results with $3.57 billion in revenue and $0.92 adjusted EPS, beating analyst forecasts, while subscription revenue rose about 21% year over year. The company also authorized a $5 billion share repurchase program and forecasts 2026 subscription revenue above estimates, driven by AI investments and strategic partnerships. Despite earnings strength, stock dipped after hours as investors weigh growth outlook.