ServiceNow Inc. (NOW), a cloud software firm that helps large firms manage digital work, jumped nearly 9% after it laid out a broader AI plan at its Knowledge 2026 event. At the same time, the stock received support from Bank of America, which assigned a Buy rating and a $130 price target.
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The move came after the company unveiled new AI tools, including AI Control Tower, Otto, and its Autonomous Workforce suite. Together, these tools point to a clear goal: ServiceNow wants to move beyond workflow software and become a key AI layer for large firms.
AI Control Tower is built to help firms manage and track AI use. Otto is a chat-based front-end for workers. Meanwhile, Autonomous Workforce is designed to enable AI agents to carry out tasks from start to finish. As a result, investors saw a more direct path for ServiceNow to sell higher-value AI tools to its client base.
Analysts Add Fuel to the Rally
As noted above, the stock also received support from Wall Street. Bank of America initiated coverage with a Buy rating and a 25% upside target. Earlier this month, Bernstein also raised its target to $236 and nearly 130% upside, calling ServiceNow a “full-stack AI operating layer” for large firms.
That view helped support the idea that ServiceNow may gain from the AI shift, rather than lose ground to it. In short, if firms use more AI agents, they may need more tools to control, monitor, and manage them. That is the space ServiceNow is targeting.
Still, the story now needs proof. Investors will want to see if these AI tools lead to larger deal sizes, stronger add-on sales, and clear price gains. They will also watch whether AI costs weigh on margins.
For now, the rally shows that the market is open to a bigger ServiceNow story, as the company is trying to become one of the main platforms that help firms run AI at scale.
Is NOW Stock a Buy or Sell?
On the Street, ServiceNow has a Strong Buy consensus. Of 22 ratings, 19 analysts rate the stock a Buy, while three rate it a Hold. The average NOW stock price target is $142.19, implying about 37% upside from the current price.
