ServiceNow Loses Half Its Value but Sees Mid‑May Bounce on Early AI Sales

Overview

• ServiceNow’s stock has fallen about 51% over the past year but rose roughly 14.5% since May 13 as AI product news and renewed analyst attention lifted investor sentiment.
• Company disclosures and investor letters report early AI traction, including 12 Now Assist deals above $1 million in annual contract value, Agent Assist usage up about 55 times since May 2025, and $600 million in ACV tied to Now Assist.
• Bank of America reinstated coverage with a Buy rating and a $130 price target on May 19, and that approval helped spur the short-term rally.
• Some investors worry that so-called agentic AI from big AI labs could let customers bypass specialized workflow software and that recent buys—Armis, Moveworks and Veza—may signal slower organic growth or add near-term integration costs.
• The near-term question for customers and markets is whether Now Assist and related offerings will produce larger, recurring subscription or consumption contracts that drive bookings, expand the addressable market and improve margins, so watch cRPO, deal size and gross margins in coming quarters.