{"id":394152,"date":"2026-04-23T18:40:09","date_gmt":"2026-04-23T18:40:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/394152\/"},"modified":"2026-04-23T18:40:09","modified_gmt":"2026-04-23T18:40:09","slug":"software-stocks-plunge-on-servicenow-ibm-results-ai-fears-escalate","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/394152\/","title":{"rendered":"Software stocks plunge on ServiceNow, IBM results, AI fears escalate"},"content":{"rendered":"

Signage outside the ServiceNow headquarters in Santa Clara, California, US, on Thursday, Sept. 4, 2025.<\/p>\n

David Paul Morris | Bloomberg | Getty Images<\/p>\n

Software stocks plummeted on Thursday as disappointing results from ServiceNow<\/a> and IBM<\/a> added to fears that artificial intelligence tools and services will disrupt their businesses.<\/p>\n

Shares of ServiceNow sank 17% Thursday, on pace for its worst day ever. The company narrowly beat Wall Street’s estimates Wednesday, but said that conflict in the Middle East<\/a> created a “headwind” for quarterly subscription revenue. IBM beat<\/a> on earnings and revenue but maintained guidance. The stock dropped 9%.<\/p>\n

Salesforce<\/a> and Hubspot<\/a> each fell about 9%. Adobe<\/a> and Intuit<\/a> were down roughly 7%, and Oracle<\/a> fell about 5%. Workday<\/a> slid 10% Thursday, and is down over 45% this year. The iShares Expanded Tech-Software ETF (IGV)<\/a>, which generally tracks the sector, fell about 5% Thursday and is down about 18% this year.<\/p>\n

The sector has been beaten down on concerns that AI tools from companies like Anthropic and OpenAI will displace the longstanding cloud subscription model.<\/p>\n

Tech’s biggest companies mostly report next week, with Alphabet<\/a>, Amazon<\/a>, Meta<\/a> and Microsoft<\/a> scheduled to release results on Wednesday, followed by Apple<\/a> a day later. <\/p>\n

Those companies have held up much better than the pureplay software vendors, mostly due to their central position in the AI boom. Microsoft, the one with the most software exposure, has been hit the worst, down 14% this year.<\/p>\n

WATCH: ServiceNow, IBM tumble on Q1 earnings<\/a><\/p>\n

\"IntelChoose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Signage outside the ServiceNow headquarters in Santa Clara, California, US, on Thursday, Sept. 4, 2025. David Paul Morris…\n","protected":false},"author":2,"featured_media":394153,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[10697,365,2709,5740,5892,363,364,2339,4562,553,161427,203617,4566,139539,164363,146570,220,5745,5741,111,139,69,5746,2712,117434,8183,154641,145,168233,27640],"class_list":{"0":"post-394152","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-adobe-inc","9":"tag-ai","10":"tag-alphabet-class-a","11":"tag-amazon-com-inc","12":"tag-apple-inc","13":"tag-artificial-intelligence","14":"tag-artificialintelligence","15":"tag-breaking-news-markets","16":"tag-breaking-news-technology","17":"tag-business-news","18":"tag-first-trust-cloud-computing-etf","19":"tag-hubspot-inc","20":"tag-international-business-machines-corp","21":"tag-intuit-inc","22":"tag-ishares-expanded-tech-software-sector-etf","23":"tag-ishares-north-american-tech-software-etf","24":"tag-markets","25":"tag-meta-platforms-inc","26":"tag-microsoft-corp","27":"tag-new-zealand","28":"tag-newzealand","29":"tag-nz","30":"tag-oracle-corp","31":"tag-salesforce-inc","32":"tag-servicenow-inc","33":"tag-software","34":"tag-software-industry","35":"tag-technology","36":"tag-wisdomtree-cloud-computing-fund","37":"tag-workday-inc"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/394152","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=394152"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/394152\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/394153"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=394152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=394152"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=394152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}