ServiceNow Bets Big on OpenAI as Stock Languishes Near 52-Week Low
January 20, 2026 · by Fintool Agent
Servicenow-1.50% is going all-in on AI. The enterprise software company announced a multi-year strategic partnership with OpenAI Tuesday to embed GPT-5.2 directly into its workflow platform, the latest move in an aggressive push to position itself as the "AI control tower for business reinvention."
The deal comes as ServiceNow trades near its 52-week low of $125.43, down roughly 47% from its January 2025 peak of $234.08—a stark contrast to the company's ambitions to become the dominant platform for enterprise AI.
The Deal
Under the agreement, ServiceNow will integrate OpenAI's frontier models directly into its platform, giving enterprise customers access to:
- Real-time speech-to-speech AI agents that can listen, reason, and respond naturally without text intermediation—enabling workflows in any language with instant response
- Computer-use models that unlock a new class of IT automation by enabling AI to interact directly with enterprise systems, including legacy mainframes
- Direct access to GPT-5.2 capabilities without requiring custom development
Financial terms weren't disclosed, but according to the Wall Street Journal, the three-year deal includes a revenue commitment from ServiceNow to OpenAI and depends on customer adoption of OpenAI models within the platform.
"ServiceNow leads the market in AI-powered workflows, setting the enterprise standard for real-world AI outcomes," said Amit Zavery, president and COO at ServiceNow. "With OpenAI, ServiceNow is building the future of AI experiences: deploying AI that takes end-to-end action in complex enterprise environments."
Ask Fintool AI AgentPart of an Aggressive M&A Spree
The OpenAI partnership is the latest in a flurry of moves aimed at cementing ServiceNow's AI platform leadership. In the past month alone:
- Armis acquisition ($7.75B cash) announced December 23, 2025—a cybersecurity firm that will extend ServiceNow's security capabilities across IT, OT, and medical devices
- Moveworks acquisition (~$3B) completed December 15, 2025—adding an AI assistant, enterprise search, and agentic reasoning engine
ServiceNow's Security and Risk business crossed $1 billion in annual contract value (ACV) in Q3 2025, and the Armis deal is expected to "more than triple" the company's market opportunity in that segment.
The Stock Picture
Despite the strategic momentum, ServiceNow shares have been under pressure. The stock closed Monday at $127.31, down 42% over the past year and trading just above its 52-week low.
| Metric | Value |
|---|---|
| Current Price | $127.30 |
| 52-Week High | $239.62 |
| 52-Week Low | $125.43 |
| YTD Return | -39.6% |
| Market Cap | $132B |
RBC Capital maintains an Outperform rating with a $195 price target, viewing the OpenAI partnership as a demonstration of ServiceNow's importance in enterprise workflows and OpenAI's desire for access to enterprise customers.
Ask Fintool AI AgentFinancial Performance
ServiceNow continues to execute on fundamentals despite the share price weakness:
| Metric | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue ($B) | $2.44* | $2.60 | $2.63 | $2.80 | $2.96* | $3.09 | $3.22 | $3.41 |
| YoY Growth | - | 6.8% | 14.0% | 6.5% | 21.3% | 18.6% | 22.4% | 21.8% |
*Values retrieved from S&P Global
The company runs more than 80 billion workflows annually and has over 1,000 customers on the "agentic AI journey." CEO Bill McDermott has touted that ServiceNow's internal AI agents now resolve 90% of IT and 89% of customer support requests autonomously.
What to Watch
Q4 2025 Earnings (January 28): Management is expected to provide more details on the OpenAI partnership structure, including potential revenue commitments and impacts on Now Assist ACV. ServiceNow previously guided for Now Assist to reach $1 billion ACV by end of 2026.
Armis Close: The $7.75 billion cybersecurity acquisition is expected to close in H2 2026, subject to regulatory approvals.
AI Agent Monetization: ServiceNow has been offering AI agents as part of its Pro Plus SKUs, with consumption-based pricing kicking in as usage scales. CEO McDermott has described this as a strategy to "accelerate adoption" now while "monetizing the hockey stick of usage over time."
The OpenAI partnership adds another dimension to that strategy—giving customers direct access to frontier AI without custom development, potentially accelerating the path to consumption-based revenue.
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