ServiceNow’s stock is on track for its worst day ever. Here’s what went wrong.

ServiceNow shares fell sharply on Thursday morning, with the stock down 24% as investors weighed the company's third-quarter earnings report. If the decline holds through the close, it would mark the software maker's worst single-day performance on record — a notable milestone for a company that has generally been a strong performer in the enterprise software space.

The size of the move reflects how much expectation had been built into the stock. When a company trades at premium valuations, even modest signs of slowing growth or cautious forward commentary can prompt a rapid repricing. The selloff appears to be a reaction to the earnings details rather than a broad market event, though sharp declines in high-multiple software names can weigh on sentiment across the sector.

For observers, the key questions are whether this reflects a company-specific issue or a broader shift in enterprise software demand, and whether the reaction proves temporary or signals a lasting change in how investors value the stock.