"Since then, shares dropped 14% in just one month. The stock is trading at $129, down from $147 at the start of 2026. That disconnect between business performance and stock price is what CEO Bill McDermott needs to address. As Jim Cramer put it, McDermott has to explain whether this is "a broken stock, not a broken company." The bigger story is ServiceNow's expanded partnership with OpenAI, announced just days ago. The multi-year deal integrates advanced AI agents directly into the platform."
"ServiceNow has beaten estimates in seven of the last eight quarters, with an average beat of nearly 9%. Meeting the $0.87 estimate would be a disappointment given that track record. Growth Durability Is the Real Question I'll be watching current remaining performance obligations more than the headline numbers. That metric tells you what's already contracted and gives visibility into 2026 growth."
ServiceNow reported strong third-quarter results with $3.41 billion revenue, up 22% year over year, and nearly a 13% beat of estimates. The company produced $813 million in operating cash flow and maintained a gross margin above 77%. Shares have fallen 44% over the past 52 weeks and dropped 14% in one month, trading at $129. A recent multi-year OpenAI partnership integrates advanced AI agents into the platform. Subscription revenue guidance is $3.42–$3.43 billion. ServiceNow has beaten estimates in seven of eight quarters, averaging a 9% beat. Analysts focus on current remaining performance obligations to assess durability of ~20% growth.
Read at 24/7 Wall St.
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