ServiceNow stock rises on AI growth and improved demand outlook

ServiceNow shares rose 1.5% during mid-day trading, reaching highs of $140.60. The stock's upward momentum is supported by positive sentiment regarding the company's artificial intelligence (AI) capabilities and demand outlook.

UBS analysts noted stable third-quarter demand trends and raised estimates for subscription-revenue growth and remaining performance obligations, citing increased interest in AI and security. ServiceNow reported that approximately 50% of its net-new revenue is now non-seat-based, signaling a shift toward consumption-driven AI offerings. The company has also surpassed $1 billion in AI contract value.

To further drive growth, ServiceNow launched new products including AI Workflow Factory and Autonomous Engineer, which are designed to automate and extend AI workflows across enterprise systems. Technical analysis indicates the stock is currently consolidating, with key resistance near $141 and support levels identified around $133.