ServiceNow shares plunged 13.1% and IBM fell 7.1% after Q1 earnings showed slower revenue growth and AI‑related concerns.
Subscription revenue at ServiceNow faced a 75‑bp headwind (~$23 million) from on‑premises deal slippage in the Middle East.
Analyst Miller Jump cut ServiceNow’s price target to $120, warning of heightened scrutiny on software vendors amid AI disruption fears.
The broader enterprise software sector retreated, with Salesforce, Oracle, Intuit, Adobe, Palo Alto Networks and Palantir all declining 1‑5%.