ServiceNow Inc. (NOW) reported third-quarter results after the market close on Wednesday, and the market's reaction was swift: the stock dropped 15.25% in after-hours trading to $127.23.

Here's the scorecard. Revenue came in at approximately $4.11 billion, edging past the $4.10 billion consensus. But adjusted earnings of $1 per share missed the $1.02 estimate. That's the kind of mixed print that makes investors reach for the sell button.

The top line looked healthy. Total revenue climbed 20.5% year-over-year, powered by a 21% jump in subscription revenue. Remaining performance obligations, a key metric for future revenue, stood at $29.7 billion at quarter's end, up 22% year-over-year.

CEO Bill McDermott didn't hold back in his commentary. "This was more than another beat-and-raise quarter for ServiceNow, this was the inflection point for ServiceNow as the Super Intelligence Control Tower," he said. "Our customers have validated our strategic relevance as the single harness for enterprise intelligence and security."

Looking ahead, ServiceNow expects fourth-quarter subscription revenue of $4.245 billion to $4.255 billion, representing roughly 22.5% to 23% growth. For the full year 2026, the company projects subscription revenue of $15.78 billion to $15.79 billion. It also raised its forecast for annual AI contract value to $1.7 billion for 2026, up 70% from the start of the year.

Alongside earnings, ServiceNow announced an expanded partnership with OpenAI, a five-year agreement with HPE, and an AI deal with Stagwell. Management will discuss the quarter further on the earnings call at 5 p.m. ET.