ServiceNow Stages a Comeback as Washington Slows Rival AI and Enterprise Deals Gain Traction
Published on 06/29/2026 at 09:31 | Redaktion boerse-global.de
A political intervention in Washington has thrown a lifeline to software shares, and ServiceNow is among the biggest beneficiaries. The Trump administration’s decision on June 26 to restrict three new GPT-5.6 models — Sol, Terra and Luna — to a closed test phase, with no public release date, flipped the script on a market that had been pricing in the obsolescence of traditional enterprise software. ServiceNow surged nearly 10% on the day, while the iShares Tech-Software ETF climbed 3.3% and the VanEck Semiconductor ETF slid 3.7%.
The rally marks more than a one-off policy bounce. It reinforces a broader rotation that has been building quietly for weeks: investors who piled into chipmakers and data-center plays during the first wave of the AI boom are now asking who will profit from making that compute power actually useful. ServiceNow, with its workflow-automation platform and a growing bet on agentic AI, has positioned itself as the answer.
That positioning was given an extra boost by the OpenAI delay. Reports suggest OpenAI’s initial public offering has been pushed back to at least 2027, buying time for established enterprise platforms without the quarterly earnings pressure of a listed rival. ServiceNow now has a clearer runway to deepen customer relationships, integrate its recent Moveworks acquisition, and turn talk of an “operating system for the AI era” into measurable subscription revenue.
Should investors sell immediately? Or is it worth buying ServiceNow?
The Moveworks deal is central to that strategy. The acquisition aims to embed autonomous agents capable of handling complex service tasks without human oversight. Partnerships with Google and HCLTech reinforce the push, embedding generative AI deeper into ServiceNow’s subscription-based services. HCLTech’s expanded alliance with Google Cloud, announced alongside the political news, will bring AI agents to the Gemini Enterprise platform, targeting customer service and field operations with real-time data.
Financially, the company is already in solid shape. Annual revenue reached roughly $13.28 billion, with a gross margin of 76.6%. Subscription revenue grew 22% in the most recent period, and half of new contract volume now comes from consumption-based pricing — a structure that insulates revenue even if companies trim per?seat licenses. Market capitalisation stood at about €89 billion, a size that demands delivery rather than promises.
Analysts see further upside despite the stock’s recent volatility. The average price target on Wall Street is $140.63, while a separate European consensus pegs the target at €124.61 — roughly 41% above the current level. Benchmark recently raised its target to $130, citing the clean business model. The stock currently trades at around €87.98, recovering about 8% over the past week after an 18% drawdown in the prior month.
That recovery has brought technical indicators back to neutral. The relative strength index sits at 50.3, signalling neither overbought nor oversold conditions. But with annualised volatility above 80%, the path is anything but smooth. The real test will come when ServiceNow next reports earnings. If subscription growth stays on its 22% trajectory, the current rebound could mark the beginning of a sustained move higher. If not, it may prove to be merely a pause in a turbulent year.
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ServiceNow Stock: New Analysis - 29 June
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