ServiceNow has reported a revenue of $3.77 billion for the first quarter of 2026, representing a year-over-year growth of 22%. However, net profit reached $469 million, leading to a disappointing after-hours stock drop of over 14%. CEO Bill McDermott highlighted that while artificial intelligence (AI) is set to boost productivity and positively impact forecasts, the ongoing Middle East conflict delayed several key deals. Despite beating sales expectations, concerns over profit margins due to the recent Armis acquisition and slowed subscription revenue have raised doubts among investors, prompting mixed reactions in the market.