ServiceNow Stock Drops 42% YTD as Delayed Middle East Deals Cut 75 Basis Points

3 articles · Updated · The Motley Fool · May 14

ServiceNow fell again after April first-quarter results, even though revenue rose 22% year over year and earnings beat expectations.
A 75-basis-point hit to subscription revenue from delayed large Middle East contract closings tied to the Iran war drove the sell-off.
Management said those deals should close later in 2026 and raised full-year subscription growth guidance to 22%-22.5% from 20.5%-21%.
ServiceNow also reported $27.7 billion in remaining performance obligations, up 25%, and expects its April Armis acquisition to support longer-term revenue growth despite near-term margin pressure.
After dropping 42% year to date and 56% over 12 months, the stock trades near a 52-week low at about 21 times forward earnings, with 90% of analysts rating it a buy.

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