ServiceNow shares stayed strong after the company announced a long term partnership with OpenAI.
The deal lets ServiceNow customers use OpenAI’s most advanced AI models directly inside the platform. No custom coding is needed. Everything works out of the box.
RBC Capital reacted positively to the news. The firm kept its Outperform rating on the stock and maintained a $195 price target.
Under the partnership, OpenAI’s models will power ServiceNow’s AI agents. These agents can help with writing content, summarizing information, answering questions, building tools for developers, and improving search across company systems.
ServiceNow’s AI Control Tower will sit on top of it all. This gives companies visibility into how the AI is being used and what actions it is taking. It also helps with governance and control, which is critical for large enterprises.
A Wall Street Journal report said the agreement runs for three years. It also suggested ServiceNow has committed to paying OpenAI based on customer usage of the models. Neither company has confirmed the details yet.
RBC believes the partnership makes strategic sense for both sides. ServiceNow gets access to leading AI technology. OpenAI gains exposure to large enterprise customers that already rely on ServiceNow for daily operations.
Analysts think this could speed up adoption of ServiceNow’s Now Assist product. With more AI features available, customers may find more reasons to expand usage across teams.
More clarity is expected during ServiceNow’s Q4 earnings call on January 28. Investors will be watching closely for details on revenue commitments and how the deal could impact Now Assist sales. Management has already said it expects Now Assist annual contract value to reach $1 billion by the end of 2026.
RBC named ServiceNow its top non consensus pick for 2026. The firm expects slightly better than expected Q4 results and steady guidance for next year.
Overall, analysts see the OpenAI deal as another step that strengthens ServiceNow’s position at the center of enterprise workflows and supports long term growth.
