US software firms slide after IBM, ServiceNow results spark fresh AI concerns

U.S. software stocks fell in premarket trading on Thursday after quarterly results from IBM and ServiceNow showed slowing growth and revived fears about AI-driven disruption across the sector.

International Business Machines said its revenue growth slowed in the first quarter, pressured by ‌weakness in its software ⁠business, which ⁠includes its Red Hat cloud unit. Growth in the segment slowed 11.3%, sending the Big Blue’s shares 7.5% lower.