ServiceNow (NOW) Shares Drop 11.4% After Q4 Results Fail to Alleviate AI Growth Concerns

ServiceNow (NYSE:NOW) shares fell 11.4% on January 29, 2026, after its Q4 earnings narrowly beat revenue estimates but failed to convincingly outperform Wall Street expectations, reigniting investor fears that AI adoption may pressure long-term growth. Current RPO matched forecasts, while adjusted operating profit and subscription revenue guidance slightly exceeded estimates. Management emphasized hybrid pricing, AI control tower expansion, and security capabilities as growth drivers. However, the market reacted negatively, signaling skepticism over AI’s net impact. The stock is down 21.9% YTD, trading at $115.09 — 49.7% below its 52-week high of $228.73. Six days prior, shares rose 3.5% on news of an expanded OpenAI partnership to embed “agentic AI” for autonomous workflows.