ServiceNow Shares Decline After AI Disruption Concerns

ServiceNow Inc. shares declined following the release of a quarterly sales outlook that aligned with analyst estimates but failed to alleviate investor concerns regarding artificial intelligence disruption.

The company projected that subscription revenue will grow by as much as 23% in the period ending in December. However, the outlook for current remaining performance obligations, a primary measure of bookings, is expected to expand by more than 18%. This projection fell slightly below the average analyst expectation of 19%.