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 reacted to the company's third-quarter earnings report. According to the report, the decline puts the software maker on track for its worst single trading day on record. The size of the move underscores how sensitive valuations in the enterprise software segment have become to quarterly results.

The reaction illustrates a familiar dynamic in high-multiple software names: when expectations are elevated, even modest disappointments in earnings or forward guidance can trigger outsized selling. Investors appear to be reassessing the company's growth trajectory and what the quarter implies for demand in its core business.

For market watchers, the key questions are whether this is a company-specific issue or a signal about broader enterprise software spending, and whether peers face similar pressure. Attention will likely turn to management's commentary on guidance and demand trends, and to whether the selloff stabilizes or extends in the sessions ahead.