ServiceNow Shares Rally on AI Product Launch and High-Profile Endorsement

ServiceNow shares rebound after unveiling new AI products, a $3M CEO stock buy, and a public defense from Nvidia's Jensen Huang, countering a steep year-to-date decline.

A significant rebound in the software sector was observed on Thursday, with ServiceNow at the forefront. The surge in sentiment followed the company's announcement of new artificial intelligence offerings and a public vote of confidence from a leading semiconductor executive, providing a welcome shift for a segment that has faced considerable pressure.

CEO Purchase and Year-to-Date Context Add to Narrative

The positive developments were underscored by a planned insider transaction. According to an SEC filing, ServiceNow’s Chief Executive Officer, Bill McDermott, is scheduled to purchase $3 million worth of stock on the open market. The timing, set for February 27th, was selected to comply with regulations concerning short-term insider profits (Section 16).

This news arrives against a backdrop of a challenging start to the year for the company's equity. Data from StockStory indicated that, as of February 26th, the share price was down 26.8% since the beginning of the year. Furthermore, the stock was trading 48.3% below its 52-week high of $208.94, reached in July 2025. In Thursday's session, shares closed near $108, marking an advance of approximately 4.2%.

Dual AI Product Rollout Targets Enterprise Efficiency

ServiceNow formally introduced two AI-powered solutions. The first, Autonomous Workforce, moves beyond single-task AI agents by coordinating teams of specialized digital roles. Examples include a "Level 1 Service Desk AI Specialist," an "Employee Service Agent," and a "Security Operations Analyst." These AI specialists are designed to execute end-to-end work processes in collaboration with human employees.

The company claims its own internal IT support is already over 90% automated. Notably, the "L1 Service Desk AI Specialist" is reported to resolve assigned IT cases 99% faster than human agents.

The second product, EmployeeWorks, integrates the conversational AI and enterprise search capabilities from the recently acquired Moveworks technology with ServiceNow's core workflow platform. This product has reached general availability just two months post-acquisition. In contrast, the "L1 Service Desk AI Specialist" is currently in a controlled availability phase, with a broad release anticipated in the second quarter of 2026.

Nvidia CEO Counters Market Skepticism

Adding substantial momentum was commentary from Nvidia CEO Jensen Huang. In an appearance on CNBC, highlighted in a StockStory report, Huang pushed back against market fears that AI would erode business for enterprise software providers. He labeled this view as "wrong" and explicitly defended platforms like ServiceNow. His rationale centered on their unique position to deploy finely-tuned AI agents effectively, leveraging their existing specialized tools within corporate environments.

The report noted that this endorsement contributed to a broader recovery in software stocks, with names like Zscaler and CrowdStrike also recouping losses.

Sector Pressures and Upcoming Financial Calendar

The week's positive news contrasted with earlier headwinds. A widely circulated research report from Citrini Research had previously weighed on software and payment stocks. The analysis presented a hypothetical scenario from the perspective of June 2028, projecting a potential slowdown in ServiceNow's Net New ACV Growth. During this period of concern, the iShares Expanded Tech-Software Sector ETF reportedly fell by as much as 5%.

Looking ahead, the next major scheduled event for investors is the quarterly earnings release. According to estimates from Yahoo Finance, the next results are expected on April 22, 2026.