TLDR
- ServiceNow (NOW) surged ~14% on Friday, leading a broad software sector rally
- New generative AI tools unveiled at Knowledge 2026, including the Otto assistant, drove investor enthusiasm
- Bank of America reinstated coverage with a bullish outlook, framing NOW as a leader in agentic AI
- A $4.2 billion share buyback was approved, adding further momentum to the stock
- The rally spread across software, with Snowflake, Oracle, Atlassian, and cybersecurity names all posting strong gains
ServiceNow (NOW) stock jumped roughly 14% on Friday, leading one of the stronger single-day moves in the software sector this year. The stock was trading up that amount by noon, with the broader iShares Expanded Tech-Software Sector ETF (IGV) surging 5% alongside it.
The move comes after weeks of pressure on software names. Year-to-date, NOW had been down nearly 29% before Friday’s session, as investors worried about AI disruption eating into traditional enterprise software demand.
That narrative appears to be shifting.
At the Knowledge 2026 conference, ServiceNow unveiled new generative AI tools, including the Otto assistant, and announced fresh partnerships with Experian and Boomi. The announcements gave investors a concrete look at how the company is embedding AI into its core platform rather than treating it as a separate product.
ServiceNow COO and Chief Product Officer Amit Zavery addressed the AI disruption concern directly at the Jefferies Software, Internet and AI conference earlier this week.
“We don’t want to have a non-AI and AI mindset anymore inside the company,” Zavery said. “Our customers don’t want it. They want to be able to adopt AI as part of the same products they buy from us.”
Zavery also made the case for why enterprise system-of-record providers like ServiceNow remain essential in an AI-driven world.
“For IT managers and IT system owners, I already have all the other visibility. I don’t want to go to a third-party system for only AI-related stuff,” he said.
$4.2 Billion Buyback and Bank of America Reinstatement
Two additional catalysts helped push the stock higher. The company’s board approved a $4.2 billion share buyback program, a move that signals confidence from management in the company’s own valuation.
Bank of America also reinstated coverage on NOW with a bullish stance, describing the company as a leader in the emerging agentic AI era. That kind of institutional backing tends to carry weight with investors sitting on the sidelines.
Together, the buyback and the analyst call added fuel to what was already a strong session for the stock.
Software Rally Spreads Across the Sector
ServiceNow wasn’t the only name moving. Snowflake (SNOW), which had already surged 36% to an all-time high on Thursday following its earnings, added another 4.5% on Friday.
Oracle (ORCL) jumped 8%, Atlassian (TEAM) soared 11%, GitLab (GTLB) popped 7.5%, and monday.com (MNDY) climbed 6%. Microsoft (MSFT) edged up 3.7% ahead of its Build 2026 conference next week, where new AI models are expected to be revealed.
Cybersecurity names joined in too. Rubrik (RBRK) leaped nearly 9%, CrowdStrike (CRWD) gained 7.5%, Palo Alto Networks (PANW) rose 6.3%, and Fortinet (FTNT) added 4%.
Management also laid out a long-term revenue target of $30 billion by 2030, a number that gave investors a clearer sense of where the company sees its AI strategy heading.
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