Earnings
Home›Earnings›Analyst Ratings›ServiceNow, Veeva and Adobe slide despite earnings hol…
ServiceNow, Veeva and Adobe slide despite earnings holding up
ServiceNow’s late-July second-quarter 2026 results beat guidance and came with raised full-year revenue projections, even as shares remain far below prior highs.
Software stocks were hit hard by fears that AI, particularly large language models, would let enterprises replace expensive software with cheaper, rebuilt versions. MarketBeat Ratings notes that many names fell 50% to 80% on the worry alone, but earnings have not shown the deterioration investors expected.
According to Stansberry Research’s Whitney Tilson, the market may have blended together software that AI can genuinely replace with software tied to the operational core of companies. Tilson is described as arguing that the AI threat is being selectively applied, while margins and growth have largely stayed intact for the companies spotlighted.
ServiceNow, which provides IT service management, risk management, and operations for large enterprises, reported second-quarter 2026 results in late July that beat guidance and included raised full-year revenue projections. The stock has fallen more than half from its highs, and even after rebounding trades at a forward earnings multiple in the mid-20s versus about a 60x historical level, alongside strong free cash flow.
Veeva Systems, focused on pharmaceutical and biotech clinical trials, is described as benefiting from a narrow product moat because regulators are accustomed to data presented in Veeva’s format. Shares dropped sharply during the sell-off after historically trading near 60 times forward earnings, and the article links that valuation pressure to the broader AI disruption narrative even as other fundamentals held up.