ServiceNow’s Recovery Accelerates on Twin Catalysts: Wipro AI Deal and EY OT Control Tower

Enterprise software is staging a comeback, and ServiceNow is riding the wave with two high-profile partnerships that have injected fresh momentum into the stock. The company’s shares surged roughly 14% in late May, closing near $124.50, as investors rotated back into beaten-down software names and digested a string of bullish developments from Wipro, EY, and Dell Technologies.

The rotation began in earnest after Dell reported blockbuster first-quarter numbers for fiscal 2027. Revenue hit $43.84 billion — an 88% year-on-year leap — driven by a 757% explosion in AI-optimized server sales to $16.13 billion. Those numbers validated the enterprise AI infrastructure thesis, giving software players like ServiceNow a lift because their workflow and governance layers sit atop that hardware. Snowflake’s own beat (Q1 revenue of $1.39 billion, up 34%, plus a raised full-year outlook) had already nudged the sector back into favor, loosening the grip of the so-called “SaaSpocalypse” narrative.

Against that backdrop, ServiceNow announced an expanded partnership with Wipro on May 28. The Indian IT giant will integrate its Wipro Intelligence™ platform with ServiceNow’s AI platform to scale agentic AI workflows across IT, HR, procurement, and cybersecurity. The collaboration targets four core functions: a unified interface for service requests, reduced manual coordination, enforced compliance trails, and end-to-end process visibility. Wipro’s American depositary receipts shot up 18% on the news.

Hard on the heels of the Wipro deal came a separate announcement that EY is launching an “OT Control Tower” built on ServiceNow’s technology. The solution tackles operational technology security and management with six modules: visibility, vulnerability management, risk assessment, compliance, service management, and AI-driven operations. The push into OT security expands on ServiceNow’s earlier acquisitions of Veza and Armis. EY joins a deep bench of consultancy partners — Deloitte, KPMG, Capgemini, and Cognizant all use ServiceNow as a linchpin for digital transformation projects. The company now counts roughly 85% of the Fortune 500 among its more than 7,700 customers.

Should investors sell immediately? Or is it worth buying ServiceNow?

One piece of personnel news also caught the market’s attention: Chief Marketing Officer Colin Fleming is leaving to become business CMO at OpenAI after just over two years at ServiceNow. Far from spooking investors, the move reinforced the perception that ServiceNow sits at the center of the enterprise AI ecosystem. Fleming had shaped the company’s brand transformation and championed its agentic AI and autonomous workflow initiatives.

The partnerships and rotation sit on solid financial ground. ServiceNow reported first-quarter 2026 revenue of $3.77 billion, up 22% from a year earlier, with subscription revenue accounting for $3.7 billion. Net income reached $469 million. The company guided for second-quarter GAAP subscription revenue between $3.815 billion and $3.820 billion and reiterated a long-term ambition to hit more than $30 billion in subscription revenue by 2030 — a target management calls a conservative “bear case.” Now Assist, the AI toolkit, is already tracking toward an annual contract value of $1.5 billion and is expected to represent over 30% of new annual contract value by the end of the decade.

Despite the recent rally, ServiceNow remains firmly in recovery mode. The stock jumped above its 20- and 50-day moving averages but still sits 14.6% below its 200-day average. Over the past 12 months it is down roughly 40%. The 52-week range stretches from $81.24 to $211.48. Analyst sentiment is cautiously constructive: the consensus rating is “Moderate Buy” with a price target of $141.85, though BMO and Needham cut their targets to $115 after the Q1 report, triggering an 18-day selloff from which the shares have since rebounded.

ServiceNow at a turning point? This analysis reveals what investors need to know now.

Institutional investors own 87.18% of ServiceNow’s stock, and several large holders added to their positions in the final quarter of 2025, including Titan Global Capital Management and Nomura Asset Management. A $5 billion share buyback program is currently underway. With two new alliance launches and a sector rotation now in full swing, the market appears ready to give ServiceNow more credit for its AI ambitions.

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