ServiceNow shares plunge after earnings and bookings outlook

ServiceNow shares suffered their worst trading day on record after the company reported third-quarter earnings below analyst estimates and forecast slower growth in contracted work for the coming quarter, renewing investor concerns about demand and the effect of artificial intelligence on software businesses. The shares fell as much as 25% during trading Thursday, October 29, and were down about 27% in one account. The decline followed results released after the market closed Wednesday. The stock’s intraday drop was described as its largest since ServiceNow went public in 2012; the record-day comparison refers to the trading session, not a closing price. For the quarter ended September 30, ServiceNow reported revenue of $4.106 billion, up 20.5% from a year earlier, and subscription revenue of $3.988 billion, up 21%. Adjusted earnings were $1.00 a share, below analyst estimates ranging from $1.02 to $1.03. Net income under generally accepted accounting principles fell to $277 million from $502 million a year earlier. Investors focused on the company’s outlook for current remaining performance obligations, or cRPO, a measure of contracted revenue expected to be recognized over...