ServiceNow (NOW) Posts Record Monthly Gain as Software Stocks Rebound on Easing AI Concerns

Software stocks surged on Friday, with ServiceNow Inc. (NOW) gaining 14.4% to cap its best monthly performance ever, as fears that artificial intelligence would upend the industry's business models subsided. The workflow management software maker climbed 40.8% in May 2026, its largest monthly advance since going public in June 2012, according to Dow Jones Market Data. The rebound follows a plunge of over 42% in the first four months of the year, triggered by concerns that AI would disrupt traditional enterprise software. The broader software sector also rallied. The iShares Expanded Tech-Software Sector ETF (IGV) rose 6.3% on Friday and more than 21% in May. Snowflake (SNOW) surged nearly 46% after strong earnings showed AI-driven demand for its data platform. Okta (OKTA) jumped over 30% on better-than-expected results, while Salesforce (CRM) climbed 8.5% to recover from a post-earnings sell-off. Bank of America analyst Tal Liani reinstated ServiceNow with a buy rating, citing its AI Control Tower platform as "mission critical" for managing autonomous AI agents.