AI software shares slid on Thursday. ServiceNow down 16%; Atlassian down 11%; Figma down 9%; Workday down 8%; Snowflake, Tempus AI down around 7%.
ServiceNow reported on Wednesday that delays in closing several large government deals in the Middle East hurt first-quarter subscription revenue growth.
The company said its subscription revenue growth faced about a 75-basis-point headwind from delayed closures of several large on-premises deals in the region due to the ongoing conflict.
Chief Operating Officer Amit Zavery said that those deals are expected to close throughout the year. "We don't know when these conflicts will get sorted out, but we continue to work with these customers," he said.
ServiceNow, like its peers, is also facing investor concerns that artificial intelligence tools could shift enterprise clients away from traditional software by automating some of the tasks previously done by their products.