New York, June 2, 2026, 06:04 EDT
- ServiceNow finished Monday up 9.24% at $135.86, but the stock moved down in after-hours trading.
- Investors moved back into software names, betting AI agents could boost enterprise software demand instead of replacing it.
- Acquisitions and slow-moving Middle East deals are still the main margin risks.
ServiceNow shares slipped in early premarket moves Tuesday, down 2.17% to $132.91 as shown in a delayed quote on MarketWatch. This comes after the stock rallied 9.24% Monday following Nvidia’s AI news, which had sparked fresh gains in software names that had been under pressure. ServiceNow last finished at $135.86.
ServiceNow is in focus as investors debate if artificial intelligence will hurt software subscriptions or drive new demand. NYSE core trading hours are 9:30 a.m. to 4 p.m. ET. June 2 isn’t listed as a 2026 holiday for the NYSE, so the action happened in the less active period before the official open.
Software stocks jumped Monday after Nvidia introduced its RTX Spark chip, aimed at putting AI features on laptops and desktops. CEO Jensen Huang told Reuters the new chip was part of Nvidia’s effort with Microsoft to “reinvent the PC” for AI. Reuters
ServiceNow was up, joining Salesforce, IBM, and Adobe as investors backed away from the “SaaSpocalypse” narrative, or the idea that AI agents might replace some types of software. ServiceNow shares added 8.4% in Monday afternoon action, Barron’s reported. Salesforce gained 9.7%, IBM climbed 7.2%, and Adobe moved up 5.5%. Barron’s
S&P 500 software and services stocks jumped 4.28% Monday, according to LSEG data on Reuters. ServiceNow shares were part of the sector’s rebound, rather than a move tied only to the company.
Nvidia said on May 31 that top software companies have started using its Agent Toolkit to make AI agents that can handle tasks with less human work. “The world’s software leaders are bringing AI agents into the systems where work gets done,” Nvidia CEO Jensen Huang said in a statement. NVIDIA Newsroom
ServiceNow pitched itself that way. The company put out Q1 subscription revenue of $3.67 billion in April, up 22% year over year. Customers with more than $1 million in annual contract value on Now Assist jumped over 130%.
ServiceNow CEO Bill McDermott said at the time that AI growth was “far exceeding even our own expectations.” CFO Gina Mastantuono said the Armis deal “meaningfully expands” ServiceNow’s addressable market. ServiceNow Investor Relations
The rally looks shakier than price moves alone show. Reuters said in April that slow closings on some big Middle East government contracts hurt subscription gains. ServiceNow also noted the Armis deal will drag 2026 free cash flow margin down by around 200 basis points, with one basis point at one-hundredth of a percent.
ServiceNow COO Amit Zavery told Reuters the delayed deals should close over the year, and said, “We continue to work with these customers.” He dismissed the AI disruption story, saying he’s “not worried about the narrative” since most new business comes from usage-based pricing, not user numbers. Reuters
ServiceNow shares could move Tuesday more on demand for software stocks than any new company news. U.S. futures slipped after making new highs, Reuters said, as traders balanced AI hopes with uncertainty from geopolitics and economic data ahead.
Related articles: NYSE:NOW
