BofA Reinstates ServiceNow at Buy: The Workflow Giant Built for the Agentic AI Era

"Bank of America reinstated its coverage of ServiceNow with a Buy rating and a $130 price target on May 18. The call frames the workflow software leader as a clear AI beneficiary, even as Bank of America reinstated Salesforce at Underperform on the same day. For prudent investors, the split call matters: Bank of America is betting that the system-of-action layer wins the agentic AI era."

"Bank of America's thesis is straightforward: while AI disrupts the software landscape, ServiceNow stands to benefit from, rather than be replaced by, new AI solutions. The firm argues that ServiceNow's workflow entrenchment "uniquely position it to benefit" from autonomous agents deployed across IT, employee, and customer workflows. Autonomous agents need somewhere to operate and a system of action to coordinate tasks, approvals, and data."

"ServiceNow's Now Platform increasingly serves as that control tower for enterprise customers. The contrast with Salesforce is telling. Both compete in agentic AI, yet Bank of America sees ServiceNow's workflow moat as more durable than Salesforce's CRM-centered Agentforce play. ServiceNow's workflow automation and AI capabilities are presented as the durable layer that agents rely on."

"ServiceNow, led by CEO Bill McDermott, sells the Now Platform for enterprise workflow automation, with AI products including Now Assist, Workflow Data Fabric, and the recently acquired Moveworks. The company carries a market cap of about $98 billion, with trailing revenue near $14 billion. ServiceNow's Q4 FY2025 results, reported January 28, showed revenue of $3.57 billion, up 21% year over year (YoY), with current remaining performance obligations (cRPO) of $12.85 billion, up 25% YoY."

Bank of America reinstated coverage of ServiceNow with a Buy rating and a $130 price target. The rationale frames ServiceNow as a beneficiary of agentic AI because its workflow automation platform can serve as a system of action for autonomous agents. The Now Platform is positioned as a control tower that coordinates tasks, approvals, and data across IT, employee, and customer workflows. ServiceNow’s AI offerings include Now Assist, Workflow Data Fabric, and Moveworks. ServiceNow has faced a decline of about 36% year to date through May 15 while the broader software group stabilizes. Recent results showed revenue growth and higher remaining performance obligations.

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