NOW beats revenue and in line with EPS but drops 15% after earnings
u/Exact-Advantage-3190 ·
Reddit — r/ValueInvesting
· April 22, 2026 at 20:23
· ⬆ 17 pts
· 💬 22 comments
| View on Reddit ↗
AI Summary
Summary
ServiceNow (NOW) reported Q1 earnings meeting EPS and slightly beating revenue, yet the stock dropped 15% in after-hours trading.
Author's thesis: The market is punishing tech stocks that merely meet expectations when priced for high growth, indicating a broader pattern this earnings season.
Quality assessment: Speculation / observation. The post is a brief commentary on market reaction, not a researched due diligence report.
Score17
Comments22
Upvote %95%
▶ Full Post Text
$NOW reported Q1 earnings after hours and met on EPS ($0.97 vs $0.97 expected) and slightly beat on revenue ($3.77B vs $3.75B expected). Despite the beat, stock dropped significantly in after-hours trading.
This seems to be the trend this earnings season... if you're not blowing past estimates, the market treats it as a miss. Meeting expectations isn't enough when the stock is already priced for growth. Anyone else noticing this pattern across tech earnings lately?
[](https://www.reddit.com/submit/?source_id=t3_1ssx49o&composer_entry=crosspost_prompt)