Key Highlights

  • ServiceNow (NYSE:NOW) closed down 26.5% at USD 110.30 on October 29, 2026, the largest one-day fall among S&P 500 members that day, after adjusted EPS of USD 0.27 and a 2026 subscription Revenue guide near USD 15.78 billion to USD 15.79 billion.
  • Fortinet (NASDAQ:FTNT) closed down 20.8% at USD 137.93 on October 29, 2026, second among S&P 500 losers, with Bank of America reported moving to Neutral and one account showing a further 27.5% drop in Friday premarket.
  • iShares Software ETF (NYSEARCA:IGV) fell about 4% on October 29, 2026 by one account, while another cited a sector decline of 3.52%, so the two measures differ slightly and neither comes from a company filing.
  • Twilio (NYSE:TWLO) fell 15% to 18% after hours on October 29, 2026 despite adjusted EPS of USD 1.65 against a USD 1.47 consensus, with the low end of the Q4 EPS guide at USD 1.48 just under the USD 1.49 consensus.

ServiceNow (NYSE:NOW): Largest S&P 500 one-day fall

ServiceNow (NYSE:NOW) fell 26.5% on October 29, 2026 to close at USD 110.30, its largest one-day fall as a member of the S&P 500, according to two accounts. The decline followed results reported on October 28, after which the shares had already dropped between 14% and 19% after hours. Adjusted Earnings Per Share were USD 0.27. One account cites an expected USD 0.35, another a miss of only USD 0.02, so the true gap is unresolved. The company guided 2026 subscription revenue to about USD 15.78 billion to 15.79 billion, and one account said Q4 guidance was weak. That cause is one-account and has not been checked in a filing. Subscription software is valued on forward growth. When a leader like ServiceNow (NYSE:NOW) hints that near-term growth may slow, investors cut the multiple they pay for each dollar of future revenue, and a modest estimate cut can become a large price move. A miss at a bellwether also raises doubt about peers that sell similar workflow and AI tools. The ripple reached Fortinet, which fell about 21% the same day, and the software ETF slid about 4% according to one account.

Fortinet (NASDAQ:FTNT): Second-largest S&P 500 loser

Fortinet (NASDAQ:FTNT) fell 20.8% on October 29, 2026 to close at USD 137.93, behind only ServiceNow's 26.5% drop among S&P 500 members. Bank of America moved its rating to Neutral, as reported. One account says full-year service revenue was lowered, but another says headline results beat, so we cannot confirm the cause from a filing. A third snapshot shows a further 27.5% drop in Friday premarket, which is a figure that rests on one account from before the open and may not hold. Earlier, CrowdStrike and Palo Alto were already down about 6% after hours on October 28, which suggests the sell-off across Cybersecurity began before Fortinet's own move. Security vendors earn from hardware sales, subscriptions and services. Service revenue is recurring, so investors treat it as the more valuable stream, and a lowered full-year service forecast signals slower growth in the part of the Business that carries the highest multiple. Fortinet (NASDAQ:FTNT) can therefore fall sharply even if the quarter's headline numbers look fine, because the stock is priced on the outlook. A downgrade to Neutral adds pressure, since analysts moving from a positive stance often lead funds to reduce positions.

iShares Software ETF (NYSEARCA:IGV): Software theme fund

Software stocks slid again on October 29, 2026. One account put the decline in iShares Software ETF (NYSEARCA:IGV) at about 4%, while another cited a sector drop of 3.52%. The two figures use different measures and neither is a company filing, so treat both as approximate. ServiceNow fell 26.5% and Fortinet 20.8%, the two biggest losers in the S&P 500. Oracle and Salesforce were also named as decliners without price figures. CrowdStrike and Palo Alto were already down about 6% after hours on October 28, which shows the weakness began a session earlier. Premarket on Friday, the same pressure was visible in the wider technology tape. Software ETFs hold many companies that sell recurring subscriptions, so they trade as one theme. When a large member reports weak guidance, investors reassess shared assumptions: customer budgets, pricing and the pace of adoption of new tools. The iShares Software ETF (NYSEARCA:IGV) does not choose among these names, so a sharp fall in its largest holdings pulls the whole fund lower even where a company reported well. The current worry, according to one account, is that AI is compressing software budgets, as buyers redirect money toward AI infrastructure and tools.

Twilio (NYSE:TWLO): Beat and raise, then a fall

Twilio (NYSE:TWLO) reported Q3 results after the close on October 29, 2026. Adjusted EPS was USD 1.65 against a USD 1.47 consensus, and the company raised its 2026 targets. The stock still fell between 15% and 18% after hours. The reason offered by the one account carrying the figures is that the low end of the Q4 EPS guide, USD 1.48, sits just below the USD 1.49 consensus. That is the account's interpretation, not a company statement. After-hours quotes can be thin, and the regular session on Friday may open at a different level. The details of the raised targets were not available to us, so the size of the increase is not stated. A stock that has climbed for several quarters carries expectations that go beyond published consensus. Buyers often position for a larger beat, so a result that merely exceeds the number can disappoint. Twilio (NYSE:TWLO) beat by USD 0.18 per share, simple arithmetic on two published numbers, yet the Q4 range starts one cent below consensus.

Where Things Stand

The answer is that investors repriced software growth, not a single earnings line. ServiceNow (NYSE:NOW) fell hardest, Fortinet followed on a cause that is still disputed, iShares Software ETF slid as one theme, and Twilio dropped despite a beat and raise. The reported worry is that AI is compressing software budgets, which is an interpretation and not a confirmed cause. The 9:30 a.m. ET open on October 30, 2026 and the company releases are the next tests. This is not Investment advice.