Trending Now - Servicenow's Q1 Revenue Surges 22%, yet Stock Plummets 12%
WHO:
CNBC - ServiceNow, a cloud computing company, reported its first-quarter results.
Business Insider - Bill McDermott is the CEO of ServiceNow.
WHAT:
CNBC - ServiceNow's Q1 subscription revenue increased by 22% year over year to $3.67 billion, exceeding Wall Street's estimate of $3.65 billion.
Business Insider - ServiceNow's stock fell by 12% in after-hours trading following the earnings report.
Business Insider - ServiceNow raised its full-year subscription revenue outlook to between $15.7 billion and $15.8 billion, indicating growth of approximately 22% to 22.5%.
Business Insider - The company's remaining performance obligations rose by 25% to $27.7 billion, while current RPO grew by 22.5% to $12.64 billion.
Business Insider - McDermott stated that the company previously forecast $1 billion in AI software sales for 2026, which he now expects to be at least $1.5 billion.
WHERE:
Business Insider - The conflict in the Middle East affected ServiceNow's growth, particularly delaying large on-premise deals.
WHEN:
CNBC - ServiceNow reported its first-quarter results on Wednesday, April 19th, 2026.
Business Insider - The stock drop occurred after the earnings report on April 19th, 2026, reversing gains made since April 10th, 2026.
WHY:
CNBC - The conflict in the Middle East was cited as a reason for the limited growth in subscription revenue.
Business Insider - RBC Capital Markets analysts noted that ServiceNow delivered a good quarter despite macro headwinds from the conflict in the Middle East.
HOW:
Business Insider - McDermott dismissed concerns about AI software threats, stating that ServiceNow's AI solutions are more accurate and predictable compared to direct AI model approaches.
(UPDATED April 22, 2026 23:16 UTC)
ServiceNow reported its first-quarter results on Sunday, revealing a subscription revenue increase of 22% year over year to $3.67 billion, which surpassed Wall Street's expectations. Despite this growth, the company's stock fell by 12% in after-hours trading, influenced by the ongoing conflict in the Middle East that has delayed some large on-premise deals. CEO Bill McDermott also raised the full-year subscription revenue outlook to between $15.7 billion and $15.8 billion and expressed confidence in achieving at least $1.5 billion in AI software sales for 2026, emphasizing the reliability of ServiceNow's AI solutions.