Investors continue to punish ServiceNow despite strong earnings and CEO McDermott’s forecast of blistering growth in AI product sales

ServiceNow beat Q1 earnings and raised full-year AI product sales guidance to $1.5B for 2026 (50% above prior forecast), yet the stock fell 14% in after-hours trading. The decline reflects the "SaaSpocalypse" narrative—investor fear that AI agents from Anthropic and OpenAI will cannibalize traditional software sales. However, economists and tech leaders including Nvidia's Jensen Huang dispute whether this thesis has empirical support.