What Happened?
Shares of enterprise workflow automation company ServiceNow (NYSE: NOW) jumped 8.9% in the afternoon session after Bank of America reinstated coverage on the stock with a "Buy" rating and a $130 price target.
BofA argued that ServiceNow sits in a "mission-critical" spot inside large companies (its software runs the IT, HR, and customer-service workflows that are deeply embedded and expensive to rip out) and that AI will likely make the platform more valuable, not less. The call directly pushed back on the worry that hammered the stock all year: that AI agents could replace workflow software.
The move was helped by a flurry of new AI partnership announcements with Experian, Accenture, FedEx Dataworks, and Boomi, signalling that ServiceNow's agentic-AI projects are moving out of pilot mode and into real production deployments.
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What Is The Market Telling Us
ServiceNow’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 5.3% on the news that President Trump's state visit to Beijing lifted market sentiment across tech, with the S&P hitting a record high above 7,500.
While the Trump-Xi summit produced fewer concrete deals than investors had hoped for, the general mood around US-China trade relations shifted from confrontational to cautiously constructive and for a sector as globally exposed as software, that reduction in uncertainty was enough to drive buyers back in.
Adding to the positive sentiment, Figma posted 46% revenue growth with early AI monetisation showing genuine traction, and ServiceNow announced a multi-year AI partnership with Experian. Each print reinforced the same thesis: that enterprise software companies are successfully embedding AI into their products and charging for it, rather than being disrupted by it a concern that had weighed heavily on the sector earlier in the year.
ServiceNow is down 30.2% since the beginning of the year, and at $102.95 per share, it is trading 50.7% below its 52-week high of $208.94 from July 2025. Despite the year-to-date decline, investors who bought $1,000 worth of ServiceNow’s shares 5 years ago would now be looking at an investment worth $1,126.
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