ServiceNow (NOW) shares plunged approximately 13% in pre-market trading on April 23, 2026. Geopolitical conflict in the Middle East caused delays in several large enterprise contracts. The company beat Q1 revenue estimates and raised its full-year guidance. Management warned of a 75-basis-point headwind to subscription revenue growth resulting from deal slippage.
IBM shares fell over 7% despite reporting a Q1 earnings beat. Investors reacted poorly as the company maintained its existing full-year guidance. CEO Arvind Krishna cited broader geopolitical uncertainty as a factor impacting client spending.
The concurrent warnings fueled concerns about a broader slowdown in corporate IT spending. This news sent a chill through the enterprise software sector and contributed to a weaker NASDAQ. The announcements highlight risks to growth forecasts for companies dependent on large corporate contracts. Market sentiment weakened for tech-focused ETFs with significant software industry holdings.