ServiceNow On Thursday, the stock price fell by 24% and is set to record its worst single-day performance yet. Previously, the third-quarter results of this enterprise software company fell short of expectations, once again triggering market concerns about the disruption caused by artificial intelligence.

"According to the consistent standards of ServiceNow, this performance is a bit unusual, mainly due to the lack of upward surprises," Citibank analyst Tyler Radke said about CNBC on Thursday.

Revenue for the quarter increased by over 20%, reaching $4.11 billion, which is basically in line with the forecast of $4.10 billion given by the analysts from LSEG. The adjusted earnings per share were $1.00, which is lower than the market's estimate of $1.02.

These results have not alleviated the recent concerns surrounding “SaaSpocalypse”, namely, the market fears that the new capabilities of AI will disrupt the traditional software business model.

Despite the company slightly raising its full-year 2026 subscription revenue forecast to between $15.78 billion and $15.79 billion, the stock price still fell. The average value of newly added AI contracts increased by 65%.

Radke indicates that one factor that unsettles investors is the fact that the newly established pre-deployment engineering team of the company does not yield immediate returns on investment in the short term. This team will be integrated into the company to help build AI solutions.

"That will only make the waiting time a bit longer, so I think the market was hoping to see some results sooner," he said, "I think you'll have to wait until next year to really see that turning point."

View: After the release of ServiceNow's mixed third-quarter results, the stock price tumbled in after-hours trading.