ServiceNow Treasury Contract Shrunk on Federal Employee Exits -- Market Talk

Dow Jones01-15

1304 ET - Treasury Department reduced spending on a contract with ServiceNow by around $15 million as a result of federal employee resignations, Stifel analysts write in a note. The reduction stems from the Deferred Resignation Program implemented by DOGE that gave federal employees paid leave if they agreed to resign on Sept. 30, 2025. The analysts say this appears to be one of the first major contract reductions as a result of the program, but predict that the ServiceNow contract is likely not the only one affected, noting that the impact from the September resignations are only now registering in federal contracting data. "We believe there is the potential that more of these DRP-related contractions are likely to surface as an incremental CY26 growth headwind for many enterprise software seat-based models in coming months/quarters," they write. ServiceNow falls 3.1%, extending Tuesday's losses. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

January 14, 2026 13:04 ET (18:04 GMT)

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