EL7.AI
StocksMediumUpdated×4•Originally published 23 April 2026•Updated 23 April 2026•
1 min read

ServiceNow Shares Plunge 18% as Geopolitical Tensions Delay Deals Despite Revenue Beat

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Key Facts

1ServiceNow CEO Bill McDermott highlighted strong customer demand and growth in AI product sales.
2Wall Street investors remain unconvinced by the company's performance despite reporting strong earnings.

ServiceNow shares saw their decline deepen to 18% as geopolitical disruptions in the Middle East weighed on sentiment despite a revenue beat. To counter the bearish momentum, the company raised its subscription revenue outlook for 2026 and announced an acceleration of its share buyback program. Quarterly subscription revenue reached $3.67 billion, exceeding estimates, while net income rose to $469 million. In related tech earnings, Vertiv reported a standout performance with an EPS of $1.17, representing an 83% year-over-year increase. CEO Bill McDermott highlighted sustained AI demand, even as geopolitical tensions delayed the closing of several enterprise deals. Market participants are now weighing the company's improved long-term guidance and buybacks against the immediate macroeconomic risks and price target cuts from Wall Street firms.