Over the last week, ServiceNow’s stock price has risen significantly. In fact, it has increased in value by about 36% in just five days. This comes after several months of relatively muted stock performance for the tech company, making this the most significant upward swing in some time.
For ServiceNow, this will undoubtedly come as good news, particularly after a comparatively difficult period for stock growth. But what’s caused the shift? And does this finally spell the end of the so-called ‘SaaSpocalypse’?
NOW in Numbers: Where Is ServiceNow’s Stock Today?
On Monday this week (June 1), ServiceNow’s stock (known as ‘NOW’) closed trading at $135.86. This is a significant jump of 36% within the space of just a week. In comparison, it closed on Tuesday last week (May 26), at $99.92. The stock has fallen back somewhat since yesterday’s closing value, to around $125 at the time of writing, but this is still noticeably higher than it was this time last week.
Needless to say, this is a significant rise, and is the fastest upward growth the stock has seen for some time. Crucially, it brings NOW to the highest value it has seen since the end of January this year.
However, it’s important to put this into context. NOW’s performance has been particularly subdued in recent months, so much of this sudden recent growth is simply cancelling out recent losses. If we take a longer view at NOW’s performance, we can see that this figure of $135.86 is still down around 8% through 2026 as a whole, where it started the year at $147.45 (closing value January 2, 2026). And compared with a year ago ($202.42, June 2, 2025), Monday’s closing figure is down by 33%.
Nonetheless, a fast spike like this is a clear sign that the tides of NOW’s fortune may be turning.
Why Is ServiceNow Stock Rising Again?
There are two main events over the last week that have contributed to NOW’s rally. The first happened on Tuesday (May 26) last week, when equity research firm Oppenheimer reiterated an ‘outperform’ rating for the stock. According to Yahoo Finance, the analyst firm said that overall demand and new software spending were healthy, and that AI, IT, Risk, and Security solutions were being cited as top investment priorities among the customers it surveyed.
ServiceNow has invested significantly in AI security and governance in recent years, so it’s little surprise that this supported Oppenheimer’s positive view of its business model.
The second event came later in the week, after the earnings report of a different tech vendor entirely: Snowflake. This is a cloud-based data platform, with a particular emphasis on data that powers AI, data engineering, and complex business analytics projects.
Last week, Snowflake posted impressive financial results and raised guidance in its earnings report. It also reported a $6B deal over five years with Amazon Web Services. As a result, Snowflake’s stock surged last week by 33% by the end of Thursday (May 28) and by 42% by the end of Friday (May 29).
It seems that Snowflake’s performance has been taken as something of a barometer for the wider SaaS market, which also includes ServiceNow. Crucially, other tech vendors like Okta and Salesforce have also seen clear spikes in recent days, as part of the same phenomenon. ServiceNow has caught the tailwind of this trend because both vendors are data partners, and they operate in a similar way as enterprise AI enablers.
To understand this phenomenon in more detail, NowBen spoke to Alecia Wall, Senior Enterprise AI Industry Analyst, who said, “This rally is really a narrative correction more than a fundamental one. Nothing changed about ServiceNow’s business in the last week. But what changed is that the market got several proof points in quick succession that the agentic AI story is a tailwind for enterprise software, not a death sentence.”
Clearly, this is about more than just the financial results of one company.
“The agentic AI story is a tailwind for enterprise software, not a death sentence.”
Is the ‘SaaSpocalyse’ Finally Over?
Up until last week, ServiceNow’s stock performance through 2026 was relatively subdued. One regularly cited cause of this is the ‘SaaSpocalypse’. In essence, this describes how concerns about AI disruption have led to muted stock performance of SaaS vendors like ServiceNow and Salesforce.
Unsurprisingly, ServiceNow has been very keen to present itself as an AI enabler, rather than a traditional SaaS company, by describing itself as the “AI control tower for business reinvention”.
But you only need to look at recent comments from ServiceNow CEO Bill McDermott to understand how widespread this SaaSpocalypse narrative has been. Earlier last month, McDermott described the SaaSpocalypse as ‘nonsense’. In February this year, he said that AI would devour low-value software companies, but that ServiceNow is not and never has been a SaaS company.
In short, you don’t have to believe the SaaSpocalypse is real to see the effect that it’s had. But it seems the events of the last few days have begun to shift the narrative in favour of SaaS vendors like Snowflake, ServiceNow, and Salesforce.
And even more recently, the SaaS sector got another boost from NVIDIA CEO Jensen Huang. Talking specifically about the SaaSpocalypse trend, Huang said, “A lot of people have said, ‘Jensen, AI is coming. Agentic AI is coming. Therefore, all of the software companies are going to go out of business.’ I said it’s exactly the opposite…” He went on to say that it is “an incredible time to be a software company”.
Since NVIDIA is one of the leading providers of AI infrastructure, Huang’s comments carry a lot of weight. Clearly, this supports the view that the only way is up for tech vendors like ServiceNow.
Alecia Wall went on to say that SaaSpocalypse “was always a sentiment story dressed up as a structural one”. But she cautioned against reading the latest developments as a surge for all SaaS vendors and stocks. “What’s actually happening is a bifurcation,” she says, “where the market is rewarding companies positioned as the orchestration layer for AI agents and punishing those that look like a seat-based business an agent could replace. ServiceNow has rallied precisely because investors are finally putting it in the first bucket.”
Final Thoughts: Can ServiceNow Recoup its 2026 Losses?
“Snowflake’s blowout quarter and then Jensen Huang explicitly making the case that agents consume more software rather than replace it – all of this gave institutional investors permission to re-rate names like ServiceNow that had been oversold on a fear that never showed up in the actual results.
“When the fear premium comes out, a stock that fell this hard snaps back fast.”
Alecia Wall, Senior Enterprise AI Industry Analyst
The last few days have certainly brought positive news for ServiceNow. But the stock is still down on its opening value from 2026, so it’s important to put these events into context. Nonetheless, ServiceNow will undoubtedly be hoping this marks the start of a more sustained upward trend for its stock price.
In truth, it could be the start of an upward streak or a temporary spike that will disappear again in a few days. As ever with stocks, it’s impossible to know either way. But it’s certainly interesting to see the narrative around the ‘SaaSpocalypse’ begin to shift.