ServiceNow, Inc. (NYSE:NOW) stock is rallying in early Tuesday trading, continuing a sharp recovery from its year-to-date lows. Traders are watching the enterprise software provider as a wave of positive catalysts shifts momentum back into the sector.



Tuesday’s rally appears to be largely driven by renewed Wall Street optimism. On Monday, Bank of America Securities analyst Tal Liani reinstated coverage on ServiceNow with a buy rating and announced a $130 price forecast.



<h2>Growth Capital Rotates Back Into Enterprise Software</h2>



Market dynamics are also working in favor of the cloud platform. Investors are currently rotating out of high-flying semiconductor stocks and channeling capital into beaten-down enterprise software names.



Peers like Salesforce, Inc. (NYSE:CRM) and Workday, Inc. (NASDAQ:WDAY) are finding renewed interest alongside ServiceNow after facing heavy selling pressure throughout 2026.



<h2>Expanding The AI Automation Footprint</h2>



The stock is also riding tailwinds from its Knowledge 2026 conference and recent deal flow. On Friday, the company announced a multi-year global partnership with Experian Plc (OTC:EXPGF) to expand AI-driven enterprise automation.



The integration embeds Experian’s Ascend platform into ServiceNow workflows, utilizing autonomous AI agents for high-regulation tasks like fraud verification and third-party risk management. “We see agentic AI as a fundamental change in how intelligent services are delivered,” noted Keith Little, President of Experian Software Solutions.



<h2>Execution Defies Margin Compression Fears</h2>



The corporate updates validate the strong 2030 outlook outlined by management on May 7, when President and CFO Gina Mastantuono targeted more than $30 billion in annual subscription revenue by 2030.



Crucially for traders monitoring profitability, the company pushed back against fears of AI margin erosion. ServiceNow expects to maintain gross margins above 80% while scaling its Now Assist product, which generated over $750 million in annual contract value in the first quarter of 2026.



<h2>Analyst Consensus &amp; Recent Actions</h2>



The stock carries a Buy rating with an average price forecast of $139.00 (high: $236.00; low: $85.00) across 50 analysts. Recent analyst moves include:



<ul>
<li>Bank of America Securities: Buy (Forecast $130.00) (May 18)</li>



<li>Bernstein: Market Perform (Raises forecast to $236.00) (May 6)</li>



<li>Macquarie: Neutral (Maintains forecast to $109.00) (May 5)</li>
</ul>



NOW Price Action: ServiceNow shares were up 5.18% at $108.78 during premarket trading Tuesday, according to Benzinga Pro. Over the past month, NOW has gained about 11.6% versus a 4.2% rise in the S&amp;P 500 and is down roughly 29% year-to-date compared to the index’s 7.7% gain.



Photo by JHVEPhoto via Shutterstock

NOWL

ServiceNow stock surged 5% following Bank of America’s $130 price target and a shift in investor focus back to enterprise software. The company is benefiting from positive market dynamics and a recent partnership with Experian to enhance AI-driven automation. Analysts maintain a Buy rating with an average target of $139, while ServiceNow aims for over $30 billion in annual subscription revenue by 2030, expecting to keep gross margins above 80%. The stock has gained 11.6% in the past month.

benzinga_article

ServiceNow

iShares Expanded Tech Software Sector ETF

SPDR S&P Software

GraniteShares 2x Long NOW Daily ETF

Bank of America

Salesforce

Workday

Experian PLC

S&P 500

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BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '5'

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BANK OF AMERICA CORPORATION 5.875%NON CUM DEP SHS REP1/1000TH SER HH

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200TH PRF SERIES '2'

BANK OF AMERICA CORPORATION 5% DEP SHS REPR 1/1000TH NON CUM PFD LL

BANK OF AMERICA CORPORATION DEP SHARES REP 1/1000TH PERP PFD SER 'E'

BANK OF AMERICA CORPORATION INCOME CAPITAL OBLIG NTS DUE 15/12/2066

BANK OF AMERICA CORPORATION 4.375% DP SH RP 1/1000TH IN NON CU PF NN

BANK OF AMERICA CORPORATION DEP SH REP 1/1200TH PRF SER 1 USD25

BANK OF AMERICA CORPORATION 5.375%DEP SHS REP 1/1000TH NON CUM SR KK

BANK OF AMERICA CORPORATION 6%NON CUM DEP SHS EACH REP 1/1000 SER GG

BANK OF AMERICA CORPORATION DEP SHS REP 1/1200 PFD SER 4 USD25

BANK OF AMERICA CORPORATION DEP SHS REP 1/1000TH NON CUM PFD SER SS

BANK OF AMERICA CORPORATION 4.125%DEP SH REP 1/1000 PFD SER PP USD25

Bank of America Corp

Experian plc

What's Going On With ServiceNow Stock Tuesday?