TLDRServiceNow shares climbed approximately 6% Thursday following CEO William McDermott’s comments that AI enhances software company value rather than diminishing itThe enterprise software firm unveiled two AI-driven products at its Government Forum: EmployeeWorks and Autonomous WorkforceNOW Assist annual contract value reached $600 million with projections to achieve $1 billion by 2026Citizens maintained its Market Outperform rating with a $260 target; analyst consensus remains Strong Buy with 30 Buy ratingsShares trade 43% below their 52-week peak but posted 11.5% gains in the past weekServiceNow (NOW) experienced a roughly 6% surge Thursday following CEO William McDermott’s remarks dismissing concerns that artificial intelligence poses a threat to software companies. His statements came during a Morgan Stanley investor conference and triggered an immediate positive market reaction.ServiceNow, Inc., NOW“If you have a great system of record, AI is actually making your intrinsic value higher because the data that’s in those systems is very important,” McDermott explained.Enterprise software players such as Salesforce (CRM) and Microsoft (MSFT) have experienced downward pressure recently amid worries that artificial intelligence might diminish the relevance of traditional enterprise software solutions. McDermott’s perspective helped alleviate some of those concerns throughout the industry.NOW continued its momentum with over 1% gains in Friday’s pre-market trading, with fellow software companies also experiencing positive movement.Government-Focused AI Solutions UnveiledSimultaneously, ServiceNow hosted its annual Government Forum where it introduced two new artificial intelligence-powered offerings.The first product, EmployeeWorks, integrates Moveworks’ conversational AI capabilities and enterprise search functionality with ServiceNow’s Employee Center platform. This solution serves as an AI gateway for government workforce operations.The second offering, Autonomous Workforce, features AI specialists capable of functioning within Government Community Cloud (GCC) and National Security Cloud (NSC) infrastructure. These autonomous agents are engineered to comply with rigorous federal agency governance standards.ServiceNow’s Moveworks platform also secured FedRAMP Moderate Authorization, enabling federal agencies to implement the technology with appropriate security compliance credentials.According to the company, its Level 1 Service Desk AI Specialist delivers IT support request resolution 99% faster compared to human representatives.Analyst Community Maintains Positive OutlookCitizens reaffirmed its Market Outperform rating for NOW with a $260 price objective. Shares currently hover around $120, representing a 43% discount from the 52-week high of $211.48.The investment firm highlighted NOW’s strategic positioning for the agentic AI landscape, emphasizing its customer base, technical architecture, and AI Control Tower platform as competitive advantages.NOW Assist annual contract value currently stands at $600 million with expectations to cross the $1 billion threshold by end of 2026.Citizens also referenced the forthcoming Armis acquisition, anticipated to finalize in the first half of 2026. CEO McDermott has estimated the company’s total addressable market exceeds $600 billion.ServiceNow maintains gross profit margins of 77.5%, with combined 2026 revenue growth and free cash flow margin projected to reach 57%, an increase from 55% in 2025. Twenty-eight analysts have raised earnings projections ahead of the upcoming earnings announcement.The Street maintains a Strong Buy consensus rating on NOW — with 30 Buy recommendations, two Hold ratings, and one Sell rating. The consensus price target of $191.20 suggests approximately 59% upside potential from present trading levels.In a notable development, CEO McDermott and other senior executives terminated their trading plans, indicating management’s confidence in the current valuation.ServiceNow also announced Danielle Fontaine’s appointment as chief accounting officer, succeeding Kevin McBride, who transitions to an EVP position.The post ServiceNow (NOW) Stock Jumps 6% as CEO Dismisses AI Threat Narrative appeared first on Blockonomi.