Iran · Wall Street · CNBC Technology
ServiceNow stock sinks 14% as subscription revenue takes passed from Iran war
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ServiceNow reported first-quarter results on Wednesday that narrowly beat Wall Street's estimates as the software company said the conflict in the Middle East dragged on subscription revenue.
Key facts
- ServiceNow increased its forecast of fiscal 2026 subscription revenues to fall between $15.74 billion and $15.78 billion, up from the forecast it made last quarter of $15.53 billion to $15.57 billion
- The company reported quarterly subscription revenues of $3.67 billion, slightly above the $3.65 billion expected by FactSet
- Our full-year guidance reflects a prudent assessment right now of the geopolitical environment," CFO Gina Mastantuono told CNBC
- The company said in its release that subscription revenue growth during the quarter "saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle
Summary
The company said in its release that subscription revenue growth during the quarter "saw an approximately 75 basis point headwind from delayed closings of several large on-premise deals in the Middle East, due to the ongoing conflict in the region. The company reported quarterly subscription revenues of $3.67 billion, slightly above the $3.65 billion expected by FactSet. ServiceNow increased its forecast of fiscal 2026 subscription revenues to fall between $15.74 billion and $15.78 billion, up from the forecast it made last quarter of $15.53 billion to $15.57 billion. "Our full-year guidance reflects a prudent assessment right now of the geopolitical environment," CFO Gina Mastantuono told CNBC.