ServiceNow Inc. (NYSE: NOW) Rebounds on BofA Analyst Coverage Restart With Buy Rating

ServiceNow Inc. (NYSE: NOW) rallied 3.40% to $106.94 on Tuesday, May 19, 2026, after Bank of America restarted coverage of the enterprise software company with a Buy rating. The analyst initiation marked a turning point for NOW shares as part of a broader rebound in software stocks, which have faced recent pressure.

By the Numbers

• Stock price: $106.94 (up 3.40% on Tuesday, May 19)
• Prior close: $103.42
• Market cap: $110.4 billion
• Forward P/E: 21.30x (TTM — may not reflect latest quarter)

Why It Matters

BofA's decision to initiate coverage with a bullish stance represents renewed confidence in ServiceNow's business model and growth trajectory. The restart of coverage—after a prior lapse—signals that the analyst sees value in the company's market position and execution. The timing coincides with a turnaround in software equity sentiment more broadly, suggesting investor appetite for enterprise software names may be stabilizing after recent volatility.

ServiceNow's forward valuation of 21.30x earnings positions it at a premium relative to some peers, but BofA's Buy rating implies confidence the company can justify that multiple through revenue and profit growth. The company's gross margin of 76.56% (TTM — may not reflect latest quarter) underscores strong pricing power in its service platform business.

Wall Street View

BofA's Buy rating and coverage restart mark a positive inflection for NOW among the broader analyst community. The initiation occurred as software stocks extended their rebound, suggesting sector-wide reassessment of valuations and growth prospects following recent selloffs.

Investor Takeaway

ServiceNow's 3.4% surge reflects analyst validation rather than company-specific operational news. Investors should monitor whether BofA's coverage will attract institutional buyers back to the name and whether the software sector's turnaround momentum persists in coming sessions.