ServiceNow Shareholders Back Massive Stock Plan as AI Partnerships Fuel Ambition

ServiceNow shareholders approved 38M new shares for employee stock plan, while AI deals with Experian and Boomi boost stock 7%. BofA initiates Buy with $130 target.

ServiceNow’s shareholders have thrown their weight behind an aggressive talent-retention strategy, clearing the way for up to 38 million new shares to be issued through the company’s employee stock program. The vote, cast at the annual meeting on 21 May 2026, expanded the total reserve pool to roughly 98 million shares, of which some 54 million are now available for future awards. The decision came with overwhelming support — approximately 736 million shares voted in favour versus just under 31 million against — but the move injects a clear dilution risk into an otherwise buoyant growth story.

The software giant’s stock closed the week at $102.13, climbing 2.45% in the session immediately after the meeting and notching a cumulative gain of more than 7% over the week. That rally was fuelled in part by a pair of freshly minted AI alliances with Experian and Boomi, designed to embed autonomous AI agents into regulated business workflows. The Experian tie-up leverages the Ascend platform, while the Boomi collaboration centres on data activation, positioning ServiceNow as a central command tower for enterprise AI governance.

Bank of America began covering the stock this week with a “Buy” rating and a $130 price target, arguing that ServiceNow is becoming indispensable for companies that need to monitor and audit AI applications. Analyst Tal Liani’s endorsement follows a first-quarter performance that saw subscription revenue jump 22% to $3.67 billion, with remaining performance obligations rising at the same clip. Management now expects full-year subscription revenue of roughly $15.7 billion.

To finance the AI push, ServiceNow has launched a multibillion-dollar bond programme, issuing fixed-rate debt rather than tapping equity markets. The strategy is underpinned by an ambitious long-range target: $23.6 billion in revenue by 2029, alongside net income of nearly $4 billion.

Institutional investors have taken notice. North Star Asset Management nearly decupled its stake in the fourth quarter, bringing the holding to about $6.7 million. Heavyweights such as Vanguard, Jennison and Pictet have also piled in. Meanwhile, the company’s internal university now counts 2 million learners, with a medium-term goal of 3 million. Personalised AI tutor “Otto” and a simulation tool aim to slash standard training time from five weeks to just five hours, a move that executive Jayney Howson says is driven by gamification and certification rather than mere enrolment.

The shareholder meeting also revealed fissures. Zoom founder Eric S. Yuan, standing for re-election to the board, received the weakest support of all nine directors, with roughly 174 million votes cast against or withheld. Management’s 2025 compensation package passed but faced notable opposition: around 111 million shares — some 14% of votes cast — went against it, and shareholders backed a switch to annual say-on-pay votes. A proposal to allow written consent by shareholders failed, with 486 million shares voting no.

Geopolitical headwinds in the Middle East nudged first-quarter growth lower, and the dilution from the expanded stock plan remains a real consideration. With 38 million new shares potentially entering the market, investors must weigh whether the operational momentum and rising institutional demand can offset the threats to earnings-per-share. For now, the market is betting that ServiceNow’s AI bets — and its central role in governing them — will deliver the revenue growth needed to keep the arithmetic in its favour.