NEW YORK, May 31, 2026, 10:01 EDT
- ServiceNow ended Friday at $124.37, climbing 14.38%. The stock finished May with a 40.8% gain, its strongest month since going public in 2012, according to MarketWatch.
- Investors moved back into software stocks linked to enterprise AI. Salesforce, Snowflake and Okta were among the names that helped lift the group.
- U.S. markets are closed for the weekend. Investors are now looking to ServiceNow’s spot at the Evercore TMT Global Conference on June 3.
ServiceNow shares bounced back hard this holiday-shortened week. Investors went back into enterprise software names after cutting them earlier this year over worries that artificial intelligence would hurt demand for standard workflow tools.
ServiceNow shares ended Friday at $124.37, jumping 14.38% for the day. The stock has risen three days running. Over the short trading week, with NYSE shut Monday for Memorial Day, ServiceNow gained 21.8% from last week’s $102.13 close.
ServiceNow’s surge Friday was big, but what traders are noticing is the shift in sentiment. According to MarketWatch, which quoted Dow Jones Market Data, ServiceNow jumped 40.8% in May, marking its strongest month since its 2012 IPO. Shares are still down nearly 19% for the year after sliding hard in the first four months.
The software trade is getting tested in the rally, with AI agents raising questions about whether companies like ServiceNow lose out or see their platforms gain. Bank of America’s Tal Liani put his buy rating back on ServiceNow last week, describing its AI Control Tower as “mission-critical” for enterprise AI agent management, MarketWatch said. MarketWatch
iShares Expanded Tech-Software Sector ETF jumped 6.3% Friday, gaining more than 21% for May. Salesforce added 8.5% on the day, MarketWatch said. Results from Snowflake and Okta also lifted the mood as investors saw more gains for data, security and workflow software from AI spend.
Wipro on May 28 said it will expand its partnership with ServiceNow, moving to embed agentic AI workflows in IT, HR, procurement and cybersecurity. The deal will integrate Wipro Intelligence with the ServiceNow AI Platform. “Connected, governed, and outcome-driven AI” is the focus of the tie-up, said ServiceNow president, COO and chief product officer Amit Zavery. Wipro
Wipro shares jumped as much as 4% Friday after the deal, Reuters reported. Its U.S.-traded ADRs had surged nearly 19% overnight on the NYSE. The partnership is key for ServiceNow as investors look for proof that big IT services players can turn AI tools into ongoing enterprise use, not just demos.
ServiceNow’s April report gave bulls a case. The company posted first-quarter subscription revenue of $3.67 billion, a 22% increase from the same period last year. Total revenue also rose 22% to $3.77 billion. Contracted revenue to be collected in the next year, called current remaining performance obligations, climbed 22.5% to $12.64 billion. CEO Bill McDermott back then said AI growth was “far exceeding” what ServiceNow had expected. ServiceNow Investor Relations
Even with the rebound, there’s little room for mistakes. Reuters said in April that big Middle East deals getting delayed cut into first-quarter subscription revenue growth and warned ServiceNow’s $7.75 billion Armis buy could hit free cash flow and operating margins in 2026. At the time, Zavery told Reuters, “I am not worried about the narrative,” but that’s still what traders are arguing about. Reuters
ServiceNow’s big jump on Friday is looking shaky if AI spend shifts fast to infrastructure, data platforms or custom-built tools before the company can ramp up revenue from its own AI products. A weaker enterprise budget cycle would also bite, especially after the stock’s quick rise.
ServiceNow gets another shot to pitch its story this week. The company is set to speak at the 2026 Evercore TMT Global Conference on June 3 at 2:10 p.m. Pacific. Regular NYSE trading hours are 9:30 a.m. to 4 p.m. Eastern.
