ServiceNow shares have fallen 40.6% over the past year, while the S&P 500 gained 11.9%. The stock dropped 27% on October 29, 2026, its sharpest single-day decline, and now trades at $109.16, a price it has reached several times since 2023. The level held in August and September 2023, when later peaks came 50.6% and 69.2% above it. It held again this summer, with shares rising from $110.07 on July 30, 2026, to $138.43 by August 27. It has failed more often lately: of five tests since October 30, 2024, three saw a 5% drop before a 20% rise. Revenue rose 21.8% in the 12 months to September 30, 2026, but operating margin fell to 9.7% from 13.9%. Management raised its AI annual contract value goal to $1.7 billion from $1.5 billion. It will report in January 2027.

ServiceNow shares fell sharply after its third-quarter results, even though revenue of $4.11 billion, up 20.5% year on year, matched Wall Street estimates. The stock trades at $105.18, down from $150.21 before the earnings. Operating margin dropped to 9.4% from 16.8% a year earlier. Adjusted earnings per share were $1, against expectations of $1.02. Annual recurring revenue reached $15.95 billion, up 20.9%. President and chief financial officer Gina Mastantuono said the company chose to include delivery expertise with its platform deals to speed up artificial intelligence (AI) deployments for select large customers. That shifted some revenue to professional services, lowering reported subscription revenue and raising costs. Mastantuono said customers with deployment support adopt AI twice as fast and use the product more.

A Motley Fool comparison of Axon Enterprise and ServiceNow favours Axon as the better long-term buy in 2026, despite ServiceNow's cheaper forward valuation. Axon's FY 2025 revenue rose 33.5% to about $2.8 billion, with net income of roughly $124.9 million. ServiceNow's revenue grew 20.9% to about $13.3 billion, with net income of around $1.7 billion. ServiceNow trades at a forward price-to-earnings ratio of 38.6x against Axon's 54.0x. Price-to-sales ratios are close, at 11.0x for ServiceNow and 10.5x for Axon. The author says Axon's law enforcement offerings and expansion into Europe and Canada set it apart. Axon sales are forecast to reach $3.7 billion in fiscal 2026, while ServiceNow's are seen rising 22% to $16.2 billion.