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ServiceNow Jumps Nearly 9% After AI Suite Launch and BofA Buy Rating

The push signals a bid to be the control layer for autonomous AI in regulated workflows.

Overview

  • ServiceNow shares rose 8.78% Monday to close at $103.42 after the Knowledge 2026 rollout of new AI tools and Bank of America’s Buy initiation with a $130 target.
  • New products include AI Control Tower to govern use of multiple AI models, Otto as a chat interface for employees, and an Autonomous Workforce to let AI agents complete end‑to‑end tasks.
  • A new multi‑year pact with Experian embeds its Ascend data and decisions into ServiceNow, targeting high‑volume tasks like onboarding, fraud checks, identity verification and model governance.
  • Analyst support broadened, with Bernstein raising its target to $236 and a 22‑firm consensus near $142 that points to about 37% upside from recent prices.
  • Q1 results showed 22% subscription growth and a 22.5% rise in contracted backlog, and investors now want proof that the AI releases lift deal sizes and margins despite model costs and delayed Middle East deals.