ServiceNow Shares Down 6.4% Since Q4 Beat, Raises $15.5B 2026 Revenue Guidance
ServiceNow reported Q4 adjusted EPS of $0.92 and revenues of $3.57 billion, up 26% and 20.7% year over year, while shares have fallen 6.4% since the earnings release. The company raised 2026 subscription revenue guidance to $15.53–15.57 billion and announced a $5 billion share repurchase program.
1. Share Performance Since Q4 Earnings
ServiceNow shares have slid 6.4% since the February earnings release, underperforming the S&P 500 and prompting investor concern over momentum despite strong top-line growth.
2. Q4 Earnings Beat and 2026 Guidance
ServiceNow delivered Q4 adjusted EPS of $0.92 and revenues of $3.57 billion, up 26% and 20.7% year-over-year, respectively, and issued 2026 subscription revenue guidance of $15.53–15.57 billion, forecasting non-GAAP operating margin of 32% and free cash flow margin of 36%.
3. Cash Flow Strength and Share Repurchases
Operating cash flow reached $2.24 billion in Q4, with free cash flow of $2.03 billion, and the company authorized a new $5 billion share repurchase program alongside a $2 billion accelerated buyback to support shareholder returns.
4. AI Product Traction and Federal Partner Award
AI offerings like Now Assist and Workflow Data Fabric saw record deal volumes, and Intact Technology was named US Federal Partner of the Year and Worldwide AI Customer Value Partner of the Year, bolstering ServiceNow’s position in regulated markets.