ServiceNow (NOW) Stock; Rebounds After BofA Issues Bullish $130 Price Target

TLDRs;

• ServiceNow rebounds after BofA issues $130 price target and bullish AI-driven outlook.
• Stock holds above $100 as investors reassess AI disruption versus enterprise software growth.
• Strong subscription revenue growth and AI positioning support long-term bullish sentiment.
• Despite dilution and geopolitical risks, momentum remains strong heading into Tuesday trading.

ServiceNow (NYSE: NOW) extended its recovery heading into the Memorial Day holiday week after Bank of America reignited bullish sentiment on the enterprise software giant with a fresh Buy rating and a $130 price target.

The call helped reinforce a broader rebound in software stocks as investors reassessed the long-term impact of artificial intelligence on enterprise workflow platforms.

The stock, which closed Friday at $102.13, gained 2.45% on the session and finished the week roughly 7.4% higher than its mid-May level. Despite some volatility across the week, ServiceNow managed to hold above the critical $100 psychological level, signaling renewed confidence from market participants.

The rebound comes as traders weigh whether AI represents a disruptive threat or a structural tailwind for enterprise software leaders like ServiceNow.

AI Debate Drives Sentiment Shift

Investor attention has increasingly shifted away from traditional growth metrics and toward AI-driven transformation in enterprise software. The rise of agentic AI, systems capable of executing tasks with minimal human intervention, has created uncertainty across the sector.

Some fear reduced reliance on legacy software subscriptions, while others see rising demand for platforms that govern, monitor, and orchestrate AI systems.

ServiceNow, Inc., NOW

ServiceNow has positioned itself firmly in the latter category. Analysts and executives argue that AI will expand rather than shrink its role in enterprise workflows, particularly as companies require more control layers to manage autonomous systems.

BofA Turns Bullish on ServiceNow

Bank of America analyst Tal Liani initiated coverage on ServiceNow with a Buy rating and a $130 price target, marking one of the more optimistic Wall Street calls on the stock in recent weeks. The firm simultaneously downgraded Salesforce, highlighting a divergence in perceived AI readiness among major software peers.

Liani’s thesis centers on the idea that ServiceNow is not threatened by AI disruption but instead positioned to benefit from it. In his view, enterprises will increasingly rely on ServiceNow’s platform to coordinate AI agents across workflows, making it a central “control layer” in future digital infrastructure.

The report helped reinforce investor sentiment at a time when software stocks have been highly reactive to AI-related headlines and guidance shifts.

Volatile Week Ends Strong

ServiceNow’s week was marked by significant intraday swings, reflecting broader uncertainty in the tech sector. Shares surged nearly 9% on Monday before experiencing midweek pullbacks and finally recovering into the holiday break.

The broader market backdrop also supported the rebound. The S&P 500 extended its winning streak, while the Dow reached record highs. Software-focused ETFs gained over 1%, with ServiceNow outperforming the sector benchmark by the end of the week.

Despite volatility, the stock’s ability to finish strong above $100 suggests buyers stepped in to defend key technical levels ahead of the market closure for Memorial Day.

Fundamentals Support Long-Term Outlook

Beyond short-term price action, ServiceNow’s underlying fundamentals remain a key pillar of investor confidence. The company reported first-quarter subscription revenue of $3.671 billion, reflecting 22% year-over-year growth. It also raised its full-year subscription outlook to between $15.735 billion and $15.775 billion.

Remaining performance obligations rose to $12.64 billion, up more than 22%, indicating sustained demand visibility for future revenue. Management continues to emphasize the company’s evolution into an “AI control tower” for enterprises, integrating workflow orchestration, security, and data infrastructure into a unified platform.