Why ServiceNow Stock Edged Past the Market Today

<p>Is the Great Software Stock Rout over?</p>
<p>It's too soon to say, but some titles in the category enjoyed a bit of a comeback Monday. One was ServiceNow (NYSE: NOW), a specialist in optimizing IT workflows in businesses. Investors traded the company up by more than 1.1%, which was just good enough to beat the S&amp;P 500 index's 1% bump. An analyst upgrade had more than a little to do with that.</p>
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<h2>From hold to buy</h2>
<p>That upgrade was made by BNP Paribas Exane's Stefan Slowinski, who currently rates ServiceNow stock outperform, rather than his previous neutral. He also thinks it could hit $140 per share; his previous level was $120.</p>
<p>According to reports, Slowinski believes ServiceNow has the qualities to succeed in the beaten-down software space. Specifically, the analyst believes a company needs to show stabilization in its core business, increased monetization of its <a href="https://www.fool.com/investing/stock-market/market-sectors/information-technology/ai-stocks/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f0f12fd-e2de-4a22-ad38-1095a0dd3bf3">artificial intelligence (AI)</a> functionalities, and decent profit margins.</p>
<p>Slowinski feels that the company is still in front of encouraging growth opportunities, to the point where it could post a roughly 20% increase in subscription revenue this year over last.</p>
<h2>AI for the win</h2>
<p>ServiceNow is an assertive and enthusiastic adopter of AI, and as such, I think this gives the company an edge. Its latest offerings lean heavily into active <a href="https://www.fool.com/investing/2026/02/26/why-stock-split-stock-service-now-triumphed-on-thu/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f0f12fd-e2de-4a22-ad38-1095a0dd3bf3">AI assistance</a>, and this dovetails nicely with the needs of modern enterprises. ServiceNow stock was unfairly punished in many ways recently, and it's deserving of at least a new look by investors.</p>
<h2>Should you buy stock in ServiceNow right now?</h2>
<p>Before you buy stock in ServiceNow, consider this:</p>
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