ServiceNow Inc (NYSE:NOW) shares are trading higher Thursday after the company announced an expanded multi-year partnership with Tech Mahindra aimed at helping enterprises move AI projects from pilot programs into full-scale production. Here’s what you need to know.
- ServiceNow stock is showing upward movement. What’s pushing NOW stock higher?
ServiceNow and Tech Mahindra Expand Partnership
Tech Mahindra and ServiceNow announced Thursday that they’re deepening their existing relationship, pairing ServiceNow’s AI platform with Tech Mahindra’s industry and implementation expertise to help large enterprises scale AI deployments rather than stay stuck in pilot mode.
Under a so-called “Client Zero” approach, Tech Mahindra and its parent, the Mahindra & Mahindra Group, will act as a proving ground where new AI tools get tested internally before rolling out to other ServiceNow customers, an approach already backed by real usage: Tech Mahindra runs its global IT operations on the platform, processing over 100,000 support cases a month across 90 countries.
ServiceNow chairman and CEO Bill McDermott said the deal reflects how meaningful business transformation now requires partners working together, pointing to Tech Mahindra’s own results, including lower costs and a roughly 25% efficiency gain in first-level IT support, as proof the approach works.
Tech Mahindra CEO Mohit Joshi said the expanded partnership gives customers the technology, industry expertise and governance needed to put AI into practice responsibly while driving measurable productivity gains.
ServiceNow’s Stock is Bouncing Off Lows
ServiceNow’s rally comes as the stock works through a broader technical recovery. Shares are trading 10.3% above their 20-day moving average of $118.50 and 20.4% above their 50-day average of $108.49, a gap that often shows up when buyers keep stepping in every time the stock dips rather than letting sellers take control. The stock also sits 8.4% above its 200-day average of $120.58, a threshold some longer-term traders watch closely as the rough boundary between a stock that’s genuinely healing and one still trapped in a downtrend.
Momentum readings 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 starting to gain the upper hand over the selling pressure that defined the stock’s drop over the past two years. Even so, the bigger trend isn’t fully repaired: the 50-day average remains beneath the 200-day average, a gap that can prevent short-term bounces from developing into something more durable. A bunching of swing highs and lows back in June reinforces the idea that this chart is still sorting itself out rather than moving in a straight line higher.
Traders are keeping an eye on $139 as the next resistance test, a round-number level where past bounces have lost steam, and $121 as the support zone to watch, sitting close enough to the 200-day average that trend-followers are likely to defend it if selling picks up.
NOW Shares Are Rising
NOW Price Action: ServiceNow shares were up 2.93% at $130.93 at the time of publication on Thursday, according to Benzinga Pro.
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