ServiceNow just reminded investors that reputation and reality can clash. The stock came into this Q3 2026 report already bruised over the past month, then dropped a further 26.9% to US$109.67 in the first full session after earnings. That slide came even as the company reported about US$4.1b in quarterly revenue and a non-GAAP operating margin of 32.5%, both notable figures for a large software platform.

The real flashpoint sits in profitability. Net income excluding special items was US$277m for the quarter, and recent net profit margin has eased compared with last year. That trend sharpens the question investors are now asking: is this a temporary squeeze, or the cost of pursuing the next leg of growth in artificial intelligence…