ServiceNow Inc. (NOW) saw its shares drop more than 8% in midday trading on December 15, 2025, driven by growing investor unease over sustained revenue growth and revised guidance, not solely due to a reported loss of a major enterprise deal. The move reflects deeper concerns about execution and market saturation in the cloud workflow automation space.
- NOW stock declined by 8.3% in midday trading on December 15, 2025, marking one of its steepest single-day drops in the past year.
- ServiceNow reported Q3 2025 revenue of $2.14 billion, up 13% year-over-year, but missed consensus estimates by $10 million.
- The company revised its full-year 2025 revenue guidance to $8.72 billion, down from the previous $8.85 billion forecast.
- Subscription revenue growth slowed to 15.2% in Q3, a decrease from 17.8% in the prior quarter, signaling potential market saturation.
- The company’s net dollar retention rate dipped slightly to 111%, below the 115% benchmark considered strong in the SaaS sector.
- Capital markets analysts have revised their price targets on NOW, with an average reduction of 12% in the past 48 hours.
ServiceNow Inc. (NOW) experienced a sharp decline in its stock price, falling over 8% during early trading on December 15, 2025, as investor sentiment turned negative despite the company’s recent quarterly earnings report. While a media report highlighted the potential loss of a large-scale deal with a global financial institution, analysts and market participants indicated that the broader downturn stems from multiple factors, including a downward revision of full-year revenue guidance and slower-than-expected subscription growth in the latest quarter.