ServiceNow Shares Surge on Expanded AI Partnership with Tech Mahindra

ServiceNow Inc shares rose Thursday after the company announced an expanded multi-year partnership with Tech Mahindra aimed at helping enterprises move AI projects from pilot phase to full production. Here's what you need to know.

ServiceNow shares are trending higher. What's driving NOW stock up?

ServiceNow Expands Partnership with Tech Mahindra

Tech Mahindra and ServiceNow announced Thursday a deepening of their existing relationship, combining ServiceNow's AI platform with Tech Mahindra's industry and implementation expertise to help large enterprises scale AI deployments rather than remain in pilot phases.

Under the so-called "Customer Zero" approach, Tech Mahindra and its parent company Mahindra & Mahindra Group will serve as a testing ground, with new AI tools trialed internally before being rolled out to other ServiceNow customers. This approach is backed by real-world usage: Tech Mahindra operates its global IT operations on the platform, processing over 100,000 support cases monthly across 90 countries.

ServiceNow Chairman and CEO Bill McDermott said the deal reflects that meaningful business transformation now requires partners to work together, noting that Tech Mahindra's own results demonstrate the effectiveness of this approach.

Tech Mahindra CEO Mohit Joshi said the expanded partnership provides customers with the technology, industry expertise, and governance frameworks needed to responsibly put AI into practice while driving measurable productivity gains.

ServiceNow Stock Rebounds from Lows

ServiceNow's rise comes amid a broader technical recovery in the stock. Shares are trading 10.3% above the 20-day moving average of $118.50 and 20.4% above the 50-day average of $108.49, a gap typically seen when buyers continue to step in on each dip rather than letting sellers take control. The stock is also 8.4% above the 200-day average of $120.58, a threshold some long-term traders watch closely as a rough boundary between a genuine recovery and a stock still stuck in a downtrend.

Momentum indicators tell a similar story. The MACD line has crossed above its signal line, and the histogram has turned positive, an early sign that buying interest is beginning to outweigh the selling pressure that has defined the stock's decline over the past two years. Still, the larger trend is not yet fully repaired: the 50-day average remains below the 200-day average, a gap that could prevent a short-term rally from developing into a more sustained advance. A series of swing highs and lows in June reinforces the view that the chart is still sorting itself out rather than moving straight up.

Traders are closely watching $139 as the next resistance test, a round number where past rallies lost momentum, and $121 as a support zone to watch, close enough to the 200-day average that trend followers may defend it if selling pressure increases.

NOW Stock Rises

NOW price action: ServiceNow shares were up 2.93% at $130.93 at the time of writing Thursday.