ServiceNow and Fortinet stock market volatility

Following third-quarter financial results, cybersecurity firm Fortinet and enterprise software company ServiceNow experienced significant stock declines. Fortinet shares fell 25% in after-hours trading after reporting a deceleration in product revenue growth and a downward revision to its full-year service revenue outlook.

ServiceNow shares saw a more substantial decline, dropping approximately 33.9% over a single week ending October 30, 2026. A major portion of this loss occurred on October 29, when the stock fell 26.9% in a single session. This plunge was reportedly driven by fears regarding AI disruption, despite the company noting strong demand for its AI-driven products. ServiceNow’s decline significantly outpaced the broader tech-software sector during this period.

By November 2, Fortinet experienced further selling pressure despite releasing financial results that exceeded earnings expectations and included raised future guidance. The company reported third-quarter 2026 revenues of $2.078 billion, a 20% increase from the previous year, with product revenues rising 37% to $765 million and billings reaching $2.336 billion.

Despite raising its annual revenue forecast to a range between $8.125 billion and $8.215 billion, the stock faced headwinds due to slowing product growth and a lowered outlook for service revenues. CNBC analyst Jay Woods identified 127.40 dollars as a critical support level, warning that breaking this level could lead to a drop toward 110 dollars, while a recovery could target a range of 155 to 160 dollars.