ServiceNow’s CEO Bet Ignites Fresh Interest in the Stock

ServiceNow ( (NOW) ) has risen by 7.15%. Read on to learn why.

ServiceNow shares have staged a 7.15% rebound over the past week, as investors begin to reassess the brutal selloff that has cut the stock in half from last year’s highs. The bounce comes against a backdrop of deep pessimism toward software names amid fears that AI tools like Anthropic’s Claude and Google’s Gemini could let companies build cheaper, in‑house alternatives to enterprise platforms. Despite those concerns, ServiceNow continues to post solid fundamentals, including 21% subscription revenue growth, 98% renewal rates, and a 25% jump in remaining performance obligations, signalling that customers are still signing long-term deals rather than walking away.

A major catalyst behind the recent move has been insider action at the very top. CEO Bill McDermott has committed $3 million of his own capital to buy ServiceNow shares on the open market, calling this “a once-in-a-generation moment” and “no better entry point” for the stock. In a strong show of confidence, other senior executives have scrapped planned share sales and are holding onto their positions. McDermott argues that ServiceNow is not an AI victim but an “AI control tower for business reinvention,” positioning the company as a key enabler of automation rather than a likely casualty of new technology.

Valuation is also helping to draw buyers back, contributing to the 7.15% weekly gain. After the heavy decline, ServiceNow now trades at roughly 25 times projected 2026 earnings—only a modest premium to the broader market and far below the multiples it commanded when sentiment was euphoric. Its forward PEG ratio of about 1.0 compares favorably with sector peers, suggesting investors are paying a reasonable price for its growth profile. Wall Street remains firmly in the bull camp, with a Strong Buy consensus and an average price target that implies substantial upside from current levels, making the recent pullback—and the subsequent weekly recovery—especially interesting for investors willing to stomach volatility in pursuit of long-term gains.