By Kaustubh Bagalkote
Publication Date: 2026-04-23 13:14:00
Nasdaq futures are down 0.36% while S&P 500 futures have shed 0.39%.
Despite both companies exceeding analyst estimates, cautious outlooks reignited concerns that artificial intelligence is structurally breaking the traditional software-as-a-service (SaaS) business model.
Geopolitical Tensions Stall ServiceNow Momentum
Specifically, the company flagged delays in Middle East deals due to the ongoing conflict.
IBM Growth Decelerates Amid AI Competition
IBM shares shed over 7% premarket after revenue growth slowed to 9%, down from 12.2% in the previous quarter. Growth in the critical software segment also showed signs of cooling, rising 11.3% compared to 14% in the prior period.
Investors are increasingly worried that AI allows companies to build proprietary tools rather than pay high subscription fees. This shift threatens to compress margins and reduce the need for standard software licenses across the industry.
The negative sentiment spread rapidly to other platform leaders on Thursday…