ServiceNow Stock Is Tumbling Thursday: What's Going On?

ServiceNow Inc NOW shares are trading lower Thursday after the company reported soft financial results for the fourth-quarter. Here’s what you need to know.

• Q4 Revenue: $2.957 billion, versus estimates of $2.961 billion

• Q4 Adjusted EPS: $3.67 per share, in line with estimates

Total revenue and subscription revenue was up 21% on a year-over-year basis. Remaining performance obligations totaled $10.7 billion at quarter’s end, up 19% year-over-year. ServiceNow said it now has nearly 500 customers with more than $5 million in annual contract value, representing 21% year-over-year growth.

"AI is fueling a top-to-bottom re-ordering of the enterprise technology landscape. Leaders are embracing the ServiceNow Platform as their AI agent control tower to unlock exponential productivity and seamlessly orchestrate end-to-end business transformation," said Bill McDermott, chairman and CEO of ServiceNow.

"We are still in the early days of a massive opportunity. ServiceNow's innovation, growth, and profitability put us in a class of one."

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ServiceNow expects first-quarter subscription revenue of $2.995 billion to $3 billion. The company expects full-year subscription revenue of $12.635 billion to $12.675 billion.

ServiceNow’s board authorized additional share repurchases of up to $3 billion. The company had $266 million remaining under its existing buyback at quarter's end.

ServiceNow also announced expanded partnerships with Visa, Oracle, Google Cloud and SoftwareOne.

Following the company’s quarterly results, Needham analyst Mike Cikos maintained ServiceNow with a Buy and raised the price target from $1,150 to $1,200. JMP Securities analyst Patrick Walravens reiterated a Market Outperform rating and maintained a price target of $1,300.

NOW Price Action: ServiceNow shares were down 11.4% at $1,013.95 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.