ServiceNow stock sinks 14% as subscription revenue takes hit from Iran war

servicenow stock dropped 14% after reporting earnings, even though it narrowly beat estimates. the company said the conflict in the middle east created a 75 basis point headwind to subscription revenue, delaying several large on-premise deals. the company posted adjusted earnings of 97 cents per share on revenue of $3.77 billion, a 22% yearly increase. subscription revenue was $3.67 billion. cfo gina mastantuono said the full-year guidance includes "a little bit of incremental conservatism" due to the geopolitical environment. the company raised its 2026 subscription revenue forecast to between $15.74 billion and $15.78 billion. servicenow repurchased about 20 million shares in the quarter, more than double what it bought in all of 2025. it also completed its $7.75 billion acquisition of cybersecurity startup armis this week. the cfo noted the company's ai products are on track to exceed its $1 billion target for the year.