ServiceNow shares fell 27% on Thursday, their worst day on record, according to CNBC. The business software company's third-quarter results did not beat forecasts by as much as investors hoped, the outlet reports.

Sales grew more than 20% to $4.11 billion, about in line with the $4.10 billion analysts expected, CNBC reports. Adjusted profit came in at $1.00 a share, a little below the forecast of $1.02, the outlet reports, citing analysts polled by LSEG.

"This was a little bit uncharacteristic for ServiceNow standards, just in terms of the lack of upside," Citi analyst Tyler Radke said, CNBC reports.

The results did little to ease what some on Wall Street call "SaaSpocalypse" fears, CNBC reports. That is the worry that new AI tools will upend the way software firms make money. Many such firms sell their products as a service that clients pay for each year.

The stock fell even though the company slightly raised its full-year forecast for subscription sales, CNBC reports. It now expects $15.78 billion to $15.79 billion. New AI contract value rose 65%, the outlet reports.

Radke said investors are worried that a new ServiceNow team is not yet paying off, CNBC reports. The team sends engineers into client companies to build AI tools for them. "It's just going to be a little bit longer of a waiting game, and so I think the market, you know, wanted to see something a little bit sooner," Radke said. "I think you got to wait until next year to really see that inflection."

What we know: ServiceNow shares fell 27% after results that were about in line with forecasts.
What we don't: Whether its AI bets will pay off next year. Only CNBC has reported this so far. NewsHabit hasn't seen independent confirmation.