RBC Reiterates Outperform on ServiceNow (NOW) After OpenAI Partnership

Core Viewpoint - ServiceNow, Inc. has signed a three-year deal with OpenAI to integrate AI models into its platform, enhancing its enterprise workflow capabilities and demonstrating its significance in organizational processes [1][2]. Group 1: Partnership and Integration - ServiceNow will integrate OpenAI's GPT-5.2 into its enterprise workflow platform, creating AI voice technology and utilizing OpenAI models to power ServiceNow agents [2]. - The partnership is expected to enhance ServiceNow's AI Control Tower, which will provide governance and orchestration for businesses [2]. - The integration is anticipated to drive increased consumption of ServiceNow's services [3]. Group 2: Market Outlook and Analyst Ratings - RBC Capital analyst Matthew Hedberg has reiterated an Outperform rating on ServiceNow with a price target of $195.00, reflecting confidence in the company's growth potential following the partnership [1]. - More details regarding the partnership and its implications are expected to be revealed during ServiceNow's fourth-quarter earnings call on January 28 [4]. - The integration of OpenAI's frontier models is expected to benefit enterprises across various industries by providing intelligence that manages complex workflows [4]. Group 3: Company Overview - ServiceNow provides an AI-native orchestration platform that integrates workflows, data, and AI to facilitate autonomous business operations [5]. - While ServiceNow shows potential as an investment, some analysts suggest that other AI stocks may offer greater upside potential with less downside risk [5].