ServiceNow Strengthens AI Arsenal with Data Partnerships and Acquisitions

ServiceNow's AI ecosystem expands via Experian and Kearney partnerships, driving institutional interest. Stock rises 4% as revenue jumps 22%.

Institutional investors are piling into ServiceNow, lured by a sweeping expansion of the company’s artificial-intelligence ecosystem that spans data integration, strategic consulting, and targeted acquisitions. The software group, which now counts Vanguard among its largest shareholders with over 101 million shares, has lined up heavy-hitting partners to buttress its push toward autonomous AI agents that can operate reliably in heavily regulated industries.

A multi-year tie-up with data provider Experian lies at the heart of the effort. ServiceNow will embed Experian’s Ascend platform directly into its own workflows, giving AI agents access to verified information that enables safer automated decisions. The technology debuts in three areas: accelerating staff onboarding and background checks, tightening risk assessments of external vendors, and monitoring the development and deployment of new AI models. Alongside this, a new alliance with consulting firm Kearney aims to combine strategic advice with ServiceNow’s software to drive enterprise-wide transformations. One early pilot client in the IT sector already saw annual operating costs drop by more than 30 percent.

The stock responded positively. Shares rose 4.0 percent on May 14 to $90.50, extending gains into Friday. The move reflects a recalibration of the company’s AI narrative rather than euphoria, especially as analysts debate the fair value of the shares. The average price target stands at $144.71, but the range is wide: Goldman Sachs sees $163, Truist Securities $120, and KeyCorp $85, the latter citing margin pressure from the recent Armis acquisition.

ServiceNow is simultaneously deepening an existing partnership with Boomi to solve a core enterprise problem – data trapped across silos. By enabling real-time data activation across complex IT landscapes, the integration gives autonomous agents the contextual understanding they need to function intelligently. This layer, which complements the recently launched AI Control Tower for multi-cloud governance, positions ServiceNow as a central orchestrator between data, workflows, and AI oversight.

Acquisitions are accelerating the innovation pipeline. MoveWorks was fully folded into the first quarter, while Veza and Pyramid closed in March and have a limited near-term impact on revenue. MoveWorks is particularly important for building what management calls a “unified AI front door” – a single interface where employees can trigger tasks, retrieve information, and automate internal processes without jumping between systems.

The financial footing underpinning these moves is solid. Quarterly revenue climbed 22 percent to $3.77 billion, with earnings per share meeting analyst forecasts. The subscription revenue target for the full year is between $15.735 billion and $15.775 billion, representing currency-adjusted growth of roughly one-fifth. More than half of net new business now comes from non-per-seat pricing models – a shift that mirrors the logic of agent-based automation, where usage and value rather than headcount drive revenue. The company has also lifted its 2026 goal for AI-related annual contract value to $1.5 billion.

Institutional confidence remains high: they hold about 87 percent of outstanding shares. Recent regulatory filings show Vanguard enlarged its stake, while Bessemer Group and New York Life Investment Management also added to their positions. Dash Acquisitions opened a new position worth nearly $10 million. Yet the valuation has contracted sharply – shares now trade at roughly 21 times expected earnings, well below historical averages. Whether that multiple re-expands depends on ServiceNow’s ability to integrate its acquisitions smoothly, convert the Boomi data hookup into tangible customer wins, and keep margins in check – all while pursuing an audacious long-term target of $30 billion in subscription revenue by 2030.