Overview
- ServiceNow shares fell about 16% to 17% after the company said the Iran–Middle East war is creating a headwind for subscription revenue.
- Software peers sank as well, with Salesforce and HubSpot down about 9%, Workday off 10%, and Adobe and Intuit lower by roughly 7%.
- IBM deepened the sector slide after it beat earnings and revenue but kept its outlook, and its stock dropped about 9%.
- ServiceNow still reported solid first‑quarter results with adjusted earnings of $0.97 a share and revenue of $3.77 billion, up 22% year over year, and it guided to 22.5% subscription growth for the current quarter.
- The selloff leaves ServiceNow down more than 40% this year as investors worry that AI tools could disrupt traditional cloud subscription models rather than fuel paid adoption.