ServiceNow (NOW) is trading higher as investors react to a new price-target increase and a broader rebound bid in the name after recent company catalysts. Citigroup raised its price target to $158 and reiterated a buy rating, pointing to improving sentiment around subscription momentum and AI monetization following the company’s latest quarterly update.

In recent updates, ServiceNow highlighted AI monetization progress and continued subscription growth, while also leaning on capital returns. The company reported it repurchased about 20.1 million shares in Q1, including an accelerated share repurchase and additional open-market buying, supporting per-share optics as the market debates medium-term growth durability.

Another key tailwind is ServiceNow’s push deeper into security and risk workflows. The company closed its Armis acquisition in April, positioning the platform to extend cyber exposure management into operational and physical environments; this followed the completion of the Veza acquisition in March, strengthening identity security capabilities. Investors are increasingly treating these deals as a growth and cross-sell lever that could help offset broader enterprise software spending skepticism.

The next near-term catalyst is ServiceNow’s Financial Analyst Day on Monday, May 4, which could reset expectations around subscription growth, AI product packaging, and the integration roadmap for Armis and Veza. Any updated medium-term targets—especially around AI-related contract value and security segment expansion—are likely to determine whether today’s rally extends or fades.