RBC Reiterates Outperform on ServiceNow (NOW) After OpenAI Partnership

ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks on Market Radar.  On January 20, RBC Capital analyst Matthew Hedberg reiterated an Outperform rating on the stock with a $195.00 price target. The rating affirmation follows news that NOW has signed a three-year deal with OpenAI to use its AI models, giving businesses access to AI agents.

ServiceNow will be integrating GPT-5.2 into its enterprise workflow platform and creating AI voice technology. OpenAI models will be powering ServiceNow agents for customers, with NOW’s AI Control Tower offering governance and orchestration.

RBC views this announcement favorably, noting how it demonstrates the importance of ServiceNow in organizational workflows, while also fulfilling OpenAI’s need for access to enterprise-grade customers.

"We believe that this integration could help drive more ServiceNow consumption,” noted the firm.

More details about the partnership are expected during ServiceNow’s fourth-quarter earnings call, due on January 28.

ServiceNow is helping enterprises bring agentic AI into workflows that are secure, scalable, and designed to deliver measurable outcomes. With OpenAI frontier models and multimodal capabilities in ServiceNow, enterprises across every industry will benefit from intelligence that handles work end to end in even the most complex environments. - Brad Lightcap, chief operating officer at OpenAI.

ServiceNow, Inc. (NYSE:NOW) provides an AI-native orchestration platform that integrates workflows, data, and AI to enable autonomous business operations.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  11 AI Stocks Analysts Are Watching Closely and 10 AI Stocks Making Waves on Wall Street

Disclosure: None.