By Lola Murti
Publication Date: 2026-04-23 17:04:00
Signage outside the ServiceNow headquarters in Santa Clara, California, US, on Thursday, Sept. 4, 2025.
David Paul Morris | Bloomberg | Getty Images
Software stocks plummeted on Thursday as disappointing results from ServiceNow and IBM added to fears that artificial intelligence tools and services will disrupt their businesses.
Shares of ServiceNow sank about 18% Thursday, its worst day on record. The company narrowly beat Wall Street’s estimates Wednesday, but said that conflict in the Middle East created a “headwind” for quarterly subscription revenue. IBM beat on earnings and revenue but maintained guidance. The stock dropped 8%.
Salesforce and Hubspot fell about 9% and 8% respectively. Adobe fell 7%, while Intuit and Oracle both dropped roughly 6%. Workday slid 9% Thursday, and is down over 45% this year. The iShares Expanded Tech-Software ETF (IGV), which generally tracks the sector, fell about 6% Thursday and is down about 19% this year.
The sector has been beaten down on concerns…
