ServiceNow Inc. shares fell 14% in trading after the cloud-based software company reported quarterly results that included warnings about deal delays in the Middle East and margin pressure from recent acquisitions.

The company posted revenue growth in its latest quarter but indicated that ongoing conflicts in the Middle East, including tensions related to Iran, have created delays in closing deals in that region. This has affected the company's subscription revenue growth, which forms the core of ServiceNow's business model.

ServiceNow also disclosed that its recent acquisition of cybersecurity firm Armis will create headwinds for its operating margins. The company said the deal will result in approximately a 75 basis point headwind to its full-year operating margin and a roughly 125 basis point impact on second-quarter operating margins.

The combination of geopolitical deal delays and acquisition-related margin pressure contributed to what analysts described as lukewarm sales performance, leading to the sharp decline in the stock price. ServiceNow's warning highlights how Middle East tensions are beginning to affect enterprise software companies' international business operations.

The company's results underscore the challenges technology firms face when operating in regions affected by geopolitical instability, as corporate customers often delay major software purchases during periods of uncertainty.