US software stocks slide as IBM, ServiceNow results reignite AI disruption fears

US 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.