ServiceNow is going big on AI, and Wall Street is starting to pay attention again.
The company’s stock jumped nearly 9% after its Knowledge 2026 event, where it laid out a broad push to become more than just workflow software. At $102.95 per share, the stock is still trading roughly 51% below its 52-week high of $208.94, and down 30% year to date. But Monday’s move suggests investors see a clearer path forward.
The catalyst was a trio of new AI products: AI Control Tower, Otto, and the Autonomous Workforce suite. AI Control Tower helps firms track and manage their AI usage. Otto is a chat-based interface for employees. Autonomous Workforce is built to let AI agents handle tasks end-to-end.
Together, the products signal that ServiceNow isn’t trying to fight AI disruption. It wants to be the platform that manages it.
Bank of America kicked off coverage with a Buy rating and a $130 price target the same day, arguing that ServiceNow sits in a “mission-critical” position inside large organizations. Its software runs IT, HR, and customer-service workflows that are deeply embedded and costly to replace.
The bank pushed back directly on what’s been hanging over the stock all year: the worry that AI agents could make workflow software obsolete. BofA’s position is essentially the opposite — that more AI means more need for platforms like ServiceNow.
Bernstein had already raised its price target to $236 earlier this month, describing the company as a “full-stack AI operating layer.” That’s a different framing than workflow vendor — and investors responded to it.
The rally was also helped by a wave of new partnership announcements. ServiceNow named Experian, Accenture, FedEx Dataworks, and Boomi as AI partners, a sign that its agentic AI projects are leaving the pilot stage and going into real deployments.
That’s meaningful. It’s one thing to announce AI tools. It’s another to show that large firms are actually using them.
Of 22 analysts covering the stock, 19 have a Buy rating and three have a Hold. The average price target sits at $142.19, implying roughly 37% upside from current levels.
The question now is whether these tools start showing up in the numbers. Investors will be watching for larger deal sizes, stronger upsell rates, and evidence that AI is driving real pricing power.
They’ll also be keeping an eye on margins. AI infrastructure isn’t cheap, and the cost side of this story still needs to play out.
For context, the stock also gained 5.3% last week following the Trump-Xi summit, which lifted sentiment across the tech sector. The S&P 500 hit a record above 7,500 during that run.
ServiceNow enters this next phase with 19 of 22 analysts calling it a Buy and an average price target around 37% above where it’s trading today.
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