{"id":623572,"date":"2026-04-23T15:50:08","date_gmt":"2026-04-23T15:50:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/623572\/"},"modified":"2026-04-23T15:50:08","modified_gmt":"2026-04-23T15:50:08","slug":"u-s-software-stocks-slide-as-ibm-servicenow-results-do-little-to-allay-ai-disruption-fears","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/623572\/","title":{"rendered":"U.S. software stocks slide as IBM, ServiceNow results do little to allay AI disruption fears"},"content":{"rendered":"

U.S. software stocks fell in premarket trading on Thursday, following quarterly results from IBM IBM-N<\/a> and ServiceNow NOW-N<\/a> that reignited fears about AI-driven disruption across the sector.<\/p>\n

International Business Machines said its revenue growth slowed in the first quarter, pressured by weakness in its software business, anchored by its Red Hat cloud unit. Growth in the segment slowed to 11.3 per cent, sending the Big Blue\u2019s shares 7.4-per-cent lower.<\/p>\n

ServiceNow also flagged a hit to its first-quarter subscription revenue service, citing delays in Middle East deals due to the ongoing Iran conflict.<\/p>\n

Although both companies reported first-quarter revenue and profit above analysts\u2019 expectations, the results failed to allay investor fears about the sector.<\/p>\n

\u201cThe challenge is shifting from simply having an AI story to proving that it can support products, workflows, and returns,\u201d said analysts at UBS Global Wealth Management.<\/p>\n

\u201cWidespread disruption in software is more likely a long-tail scenario than an immediate one, especially for enterprise-facing and mission-critical providers with sticky customer relationships.\u201d<\/p>\n

Investors return to U.S. stocks as AI, earnings growth feed fear of missing out<\/a><\/p>\n

Investor concerns around AI disruption have been building since Anthropic launched new tools in February that automated tasks across domains, including marketing and data analytics, raising questions about the pressure such products could put on traditional software businesses.<\/p>\n

Microsoft MSFT-Q<\/a> lost 1.8 per cent in premarket trading. Adobe ADBE-Q<\/a> fell 2 per cent, CrowdStrike CRWD-Q<\/a> was off 2.2 per cent, Intuit INTU-Q<\/a> was down 3.2 per cent and Datadog DDOG-Q<\/a> shed 2.4 per cent before the bell.<\/p>\n

Meanwhile, analog chip maker Texas Instruments TXN-Q<\/a> surged 11.7 per cent after it forecast second-quarter revenue and profit above estimates.<\/p>\n

Other analog chip suppliers, including ON Semiconductor ON-Q<\/a>, Microchip Technology MCHP-Q<\/a>, NXP Semiconductors NXPI-Q<\/a> and Analog Devices ADI-Q<\/a>, also climbed, between 3.7 per cent and 4.7 per cent.<\/p>\n

The AI boom has brought opposing fortunes for chip stocks and software, with the S&P 500 software and services index down over 13 per cent so far this year, while the Philadelphia SE Semiconductor index has jumped almost 40 per cent.<\/p>\n

The benchmark S&P 500 has gained about 4 per cent in the same period. <\/p>\n","protected":false},"excerpt":{"rendered":"U.S. software stocks fell in premarket trading on Thursday, following quarterly results from IBM IBM-N and ServiceNow NOW-N…\n","protected":false},"author":2,"featured_media":623573,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-623572","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alberta","tag-artificial-intelligence","tag-artificialintelligence","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/623572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=623572"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/623572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/623573"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=623572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=623572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=623572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}