ServiceNow shares fell 19% after the company reported third-quarter results, despite revenue growth slightly exceeding expectations and a forecast for current-quarter growth to rebound 2%. According to Sina Finance, ServiceNow said adoption of its AI products continued to rise, while investors remained wary of AI’s potential threat to its business. AI-related orders grew 80% year over year in the fiscal quarter ended in September.

Revenue for the September quarter increased 20.5% year over year to just over $4.1 billion, compared with 24% growth in the prior quarter. ServiceNow forecasts current-quarter revenue of about $4.25 billion, implying growth of roughly 23%.

Current remaining performance obligations (CRPO), representing contracted amounts not yet recognized as revenue and due to be recorded over the next 12 months, rose 21% year over year to $13.65 billion. ServiceNow expects CRPO growth to slow to 18.5% this quarter.

The company raised its year-end 2026 target for annual contract value from AI products to $1.7 billion, from $1.5 billion set in May and $1 billion at the start of the year.