Key Highlights

  • ServiceNow (NYSE:NOW) reports after the close on October 28, 2026, with EPS seen at USD 1.02 on about USD 4.09 billion of revenue, according to a published earnings calendar.
  • One opinion piece calls seat-based software 'pressured' by Anthropic's push, a view that frames the report as a test of the software-versus-AI-lab narrative that has dominated sector sentiment this week.
  • UBS downgraded HubSpot (NYSE:HUBS) on October 28, 2026, a reminder that analysts are already reassessing which software models face the greatest disruption from AI tools.
  • Microsoft (NASDAQ:MSFT) also reports after the close, so the software group gets two direct readings on AI monetization and on enterprise demand on the same evening.

What the Consensus Implies

ServiceNow (NYSE:NOW) is forecast to earn USD 1.02 a share on revenue near USD 4.09 billion. The company sells workflow software to large enterprises, usually under subscriptions priced by the number of users, called seats. If artificial intelligence agents perform tasks that employees did, customers may buy fewer seats, which is the worry behind the 'pressured' label. The label comes from one opinion piece and is not a company statement. The figures are approximate, since they come from one calendar, and results will arrive tonight after the Federal Reserve decision at 2:00 p.m. ET. Enterprise software contracts are typically signed for a year or more, so bookings and renewals are leading indicators that investors read ahead of reported revenue.

The Anthropic Narrative

Anthropic, a private company with no listed shares, has drawn attention with its filing for a public listing, first reported on October 26, 2026. The debate is whether AI labs will capture the value that software vendors have held, or whether vendors can embed AI to charge more per customer. UBS's downgrade of HubSpot suggests some analysts lean toward the first view. For ServiceNow (NYSE:NOW), management will likely be asked about AI product revenue, pricing models that depend on usage and not seats, and renewals. Evidence of strong AI demand within its own platform would counter the narrative. Conversely, any hint that large customers are consolidating vendors or trimming user counts would feed the pressure story and could outweigh a clean beat on revenue and profit.

Risks and What to Watch

Risks include slower growth in new contracts, longer sales cycles, margin pressure from AI compute costs and a market that already pays a high multiple for the stock. A 10-year yield near 4.995% and December hike odds near 73% to 75% can compress software valuations further. Investors should watch subscription revenue, remaining performance obligations, guidance and any change in pricing. The company has not yet reported, and each figure here is a forecast. A strong quarter might still lead to a fall if the outlook sounds cautious on seat counts. Microsoft's report on the same evening could either reinforce or undercut the AI narrative, and the two stocks are likely to be read together by software investors.

Where Things Stand

The answer is that ServiceNow (NYSE:NOW) reports tonight because the October 28, 2026 calendar places it after the close, and investors want to know whether AI is a tailwind or a threat to seat-based software. Consensus is USD 1.02 EPS on USD 4.09 billion, from one calendar. The 'pressured' view is one opinion. Guidance and AI revenue will drive the reaction. This is not investment advice.