ServiceNow (NOW) reported strong Q4 2025 results with increased revenue and earnings, a raised 2026 outlook, and an expanded US$9.50 billion share buyback, driven by rapid AI adoption across its platform. Despite these positive developments, the stock fell 13.9% due to market anxieties about AI potentially disrupting traditional software models. The company aims to counter these fears by integrating AI deeply into its products and showcasing enterprise client successes, although its shares may still be trading significantly above fair value according to some estimates.
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ServiceNow (NOW) Is Down 13.9% After AI-Fueled Beat, Raised Outlook And Bigger Buyback Authorization
ServiceNow (NOW) reported strong Q4 2025 results with increased revenue and earnings, a raised 2026 outlook, and an expanded US$9.50 billion share buyback, driven by rapid AI adoption across its platform. Despite these positive developments, the stock fell 13.9% due to market anxieties about AI potentially disrupting traditional software models. The company aims to counter these fears by integrating AI deeply into its products and showcasing enterprise client successes, although its shares may still be trading significantly above fair value according to some estimates.