ServiceNow shares rose 6.1% to $145.08 in morning trading on Thursday, extending a recovery from the company’s 52-week low of $81.24.
The advance follows the enterprise software provider’s disclosure that its annual contract value for AI surpassed $1 billion in the second quarter of 2026, a milestone that underscored its growing monetization of agentic AI capabilities. Analysts at Bank of America and Wells Fargo separately raised their price targets on the stock this week, citing improving fundamentals and expanding workflow opportunities tied to security and AI integration.
Bank of America increased its target to $150 from $130, while Wells Fargo lifted its target to $175 from $160. Both firms noted that recent market sentiment had been overly punitive toward enterprise software companies despite solid underlying performance at ServiceNow. The upgrades were issued in mid-August, aligning with broader optimism across the tech sector.
ServiceNow’s participation in the Deutsche Bank Technology Conference on August 27 further reinforced investor confidence in its AI strategy, particularly as concerns over AI disruption in enterprise workflows have eased. The S&P 500, Nasdaq and Dow Jones all advanced modestly on the day, with the Nasdaq up 0.9%, the Dow gaining 0.8% and the S&P 500 rising 0.6%.
The rally reflects a shift in sentiment toward leading enterprise software platforms, with investors increasingly betting that established players such as ServiceNow will successfully integrate AI rather than be displaced by it.
