Shares of ServiceNow (NYSE:NOW | NOW Price Prediction) are up 14% in Friday trading, changing hands at roughly $124 after closing Thursday at $108.73. The pop comes as capital rotates back into beaten-down enterprise software names following a blowout quarter from Dell Technologies (NYSE:DELL).
The move is striking given the setup. ServiceNow stock still sits 47% below its one-year high, so this is a bounce off of a deeply oversold tape.
The broader software complex is participating. Snowflake (NYSE:SNOW), Wipro (NYSE:WIT), and C3.ai (NYSE:AI) shares are all in motion as investors reprice the AI workflow layer.
Dell’s Blowout Earnings Validate the AI Infrastructure Thesis
Dell Technologies reported Q1 FY2027 results after Thursday’s close, posting revenue of $43.84 billion, up 88% year over year (YoY) against a consensus near $35.77 billion. Non-GAAP EPS of $4.86 crushed the $2.96 estimate by 64%.
The headline figure was AI-optimized server revenue of $16.13 billion, up 757% YoY, with $24.4 billion in AI orders booked during Q1. Dell Technologies also raised its full-year FY27 revenue guidance to $165 billion to $169 billion and lifted its full-year AI server outlook to roughly $60 billion.
Those numbers validate the enterprise AI buildout that ServiceNow is leveraged to. ServiceNow sits as the workflow and governance layer on top of that infrastructure spend, and the read-through is direct. Dell stock is up 29% in Friday’s session.
Snowflake Halo and a Wipro Partnership Add Fuel
The rotation started earlier in the week when Snowflake reported Q1 FY2027 revenue of $1.39 billion, up 34% YoY, and raised its full-year product revenue guide to $5,840 million. CEO Sridhar Ramaswamy called Q1 “a clear inflection point” in Snowflake’s AI journey.
That print reframed the “SaaSpocalypse” narrative that had crushed enterprise software multiples. Snowflake stock is up 4% Friday, extending a recovery week.
ServiceNow also got a direct catalyst. Wipro and ServiceNow announced an expanded AI partnership this week to integrate Wipro Intelligence with the ServiceNow AI Platform for agentic workflows, a deal that sent Wipro ADRs up 18% on the news.
Analyst Tailwind and an AI Talent Story
Bank of America analyst Tal Liani published a bullish call positioning ServiceNow as an AI “growth engine,” framing Salesforce (NYSE:CRM) as the structural risk in the workflow stack. CEO Bill McDermott has been pounding the same drum, asserting “no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow” on the most recent call.
Adding to the buzz, ServiceNow CMO Colin Fleming is leaving to join OpenAI as CMO of its business division. That is a talent-flow signal that underscores how tightly the enterprise AI orbit has consolidated.
Reddit sentiment confirms the grassroots shift. The top r/stocks thread, “NOW might actually be a decent AI play,” climbed to 111 upvotes and 67 comments by Tuesday afternoon as the rotation thesis spread.
What to Watch
The near-term tell is whether ServiceNow stock holds these gains into the close and follows through on Monday. Traders can monitor the $120 level as a potential make-or-break point for NOW stock.
For the time being, cautious investors should treat this as a catalyst-driven repricing rather than a confirmed breakout. The setup is improving, but ServiceNow stock has work to do before reclaiming its prior trend.
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