Earnings Were a Surprise... Cloud Giant Loses 14 Trillion Won in a Day

Shares of ServiceNow Inc. (ticker: NOW), the U.S. cloud software provider, plunged 9.95% on the New York Stock Exchange on the 29th, closing at $116.78. In a single trading day, its market capitalization shrank by about $10.9 billion—over ₩14 trillion—bringing its total market cap down to roughly $121.3 billion (approximately ₩158 trillion).

In its after-market release of fourth-quarter fiscal 2025 results, ServiceNow reported revenue and earnings that beat analyst estimates, and AI-driven subscription revenue grew in the low-20% range year-over-year. Nevertheless, investors sold off shares after interpreting the guidance—pointing to potentially slower future growth and stiffer competition—as a warning sign. The company also announced an incremental $5 billion share buyback and forecast about 20% subscription revenue growth in fiscal 2026. Market observers say concerns over heavy reliance on M&A and intensifying AI competition weighed on the stock.

ServiceNow is a leading B2B SaaS firm delivering cloud-based IT service management and workflow automation. Since Bill McDermott became CEO, the company has pursued aggressive acquisitions and invested heavily in its AI platform to drive scale. Its recent moves to acquire cybersecurity specialist Armis, AI-based work assistant Moveworks, and identity-security company Beza reinforce its positioning as an “AI-powered work platform.” Looking ahead, competition with major enterprise-software and AI players will be a critical factor.