ServiceNow's earnings this quarter are the kind where “the report looks great, but the market still isn't buying it” 😅

After the market closed on 10/28, ServiceNow (NYSE: NOW) reported Q3 2026 results. Here are the key numbers:

1️⃣ Subscription revenue was $3.988B, up 21% YoY; total revenue was $4.106B, up 20.5%. The company said all topline and profit metrics came in above the high end of its guidance.

2️⃣ cRPO was $13.65B (+20.5%), and RPO was $29.7B (+22%).

3️⃣ There were 19 net-new deals with ACV above $5M, up more than 135% YoY; 680 customers had ACV >$5M.

4️⃣ The 2026 AI ACV target was raised again to $1.7B, up 70% from the start of the year.

5️⃣ Non-GAAP operating margin of 32.5%, Non-GAAP EPS of $1.00; full-year subscription revenue guidance raised to $15.78–15.79B, FCF margin target increased from 35% to 36% (with lower capex)

So why did the stock fall after hours? I think the market is focused on next quarter: Q4 cRPO guidance was only +18.5% (at constant currency), a clear slowdown from this quarter’s 21%. Management explained that on-prem deals make up a larger share and some backlog isn’t included in cRPO—a reasonable explanation, but the market voted with its feet first.

My take:

👉 SaaS is getting hammered by the “AI will eat software” narrative. McDermott’s response is “we’re the control tower for agents”—and we don’t have to spend our own money on compute.

👉 This quarter looks more like an expectations-management issue, not a collapse in demand. The real test is whether Q4 cRPO can come in above guidance.

I screen, I don’t educate. I remain optimistic about the long-term prospects of the Nasdaq-100 and U.S. tech stocks, though individual stocks can be volatile.

Sources: ServiceNow’s official press release (Business Wire, 10-28), Q3 earnings call transcript (Investing.com / StockAnalysis)

Not investment advice. DYOR.