ServiceNow (NOW) Stock; Rises Nearly 5% Following AI-Powered EmployeeWorks Debut

TLDRs;

• ServiceNow shares jumped nearly 5% as its new AI tools, EmployeeWorks, officially hit the market.
• Autonomous Workforce suite aims to automate IT tasks, promising faster resolution and higher efficiency.
• Early adoption by CVS Health and Raleigh signals potential traction in enterprise and public sectors.
• CEO share purchase and FedRAMP approval add investor confidence ahead of upcoming events.

ServiceNow (NASDAQ:NOW) saw its stock climb 4.86% to $109.30 on Thursday, fueled by the launch of its new Autonomous Workforce platform. The debut of EmployeeWorks, an AI-powered suite designed to handle routine IT and HR tasks, is at the center of investor optimism. Shares fluctuated intraday between $106.57 and $110.15 before closing with the nearly 5% gain.

Traders appear to be capitalizing on a broader software rebound. While tech-heavy indexes like the Nasdaq dipped 1.18%, the S&P 500 software and services segment managed a 1.4% rise, highlighting the divergence in recent tech sector performance. Analysts suggest that investors are increasingly weighing the long-term impact of AI integration in enterprise workflows against short-term market volatility.

AI Specialists Take Center Stage

EmployeeWorks introduces what ServiceNow calls AI specialists, automated agents that perform tasks previously handled by humans. The first AI specialist focuses on Level 1 IT service desk requests, including password resets and access requests. According to John Aisien, a ServiceNow product executive, these agents operate strictly within pre-defined boundaries, ensuring they cannot overstep permissions assigned to human employees.

Internal testing results suggest a dramatic efficiency boost: more than 90% of IT requests are now handled autonomously, with resolution times 99% faster than manual processes. If these early metrics hold in broader deployments, the platform could reshape enterprise IT operations and reduce operational bottlenecks.

Early Adoption and Security Approvals

ServiceNow is already showcasing early adoption at high-profile clients, including CVS Health and the city of Raleigh, North Carolina. These deployments highlight the platform’s potential appeal across both private and public sectors.

Additionally, ServiceNow’s recently acquired AI assistant firm, Moveworks, has received FedRAMP Moderate authorization, a crucial U.S. government certification that enables secure federal cloud operations. This approval opens doors for new government contracts and bolsters investor confidence ahead of ServiceNow’s Government Forum on March 5.

Investor Sentiment and Upcoming Catalysts

Investor attention is also on CEO Bill McDermott, who, along with several executives, recently terminated pre-set trading plans known as 10b5-1 agreements. McDermott has committed to purchasing $3 million in company shares on February 27, signaling confidence in the company’s direction.

Combined with ongoing share buybacks and an accelerated repurchase program, these moves have strengthened market sentiment.Despite the enthusiasm, risks remain. Early AI deployments can encounter operational glitches, supervision challenges, and liability concerns if systems behave unexpectedly.

Market watchers are also comparing ServiceNow’s outlook to peers such as Salesforce, which recently saw share declines after reporting weaker guidance. Traders are closely monitoring these dynamics, particularly ahead of ServiceNow’s Knowledge 2026 event in Las Vegas from May 5–7.

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