ServiceNow shares rise after WSJ reports three-year AI deal with OpenAI

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Go back to ServiceNow shares rise after WSJ reports three-year AI deal with OpenAI

RBC Capital on ServiceNow (NOW) Deal w/ OpenAI: 'we believe that this integration could help drive more ServiceNow consumption'

January 20, 2026 10:10 AM EST

RBC Capital analyst Matthew Hedberg reiterated an Outperform rating and $195.00 price target on ServiceNow (NYSE: NOW).

The analyst comments "What's new? Before the open on Tuesday (1/20), ServiceNow announced a multi-year collaboration deal with OpenAI to enable direct access to frontier model capabilities within ServiceNow without the need for bespoke development. Additionally, ServiceNow plans on building speech-to-speech technology using OpenAI models. As part of this integration, OpenAI models can now power ServiceNow agents for customers, with ServiceNow's AI Control tower providing governance and orchestration to give organizations visibility into how models are being... More