ServiceNow shares jumped as much as 14% on June 1 as investors collectively decided that maybe, just maybe, OpenAI isn’t going to eat the entire enterprise software industry for lunch.
The rally wasn’t a solo act. Salesforce and other major software names climbed alongside ServiceNow in what amounted to a sector-wide exhale.
From SaaSpocalypse to second wind
Software names including ServiceNow and Salesforce had fallen more than 50% from their highs earlier in 2026. The culprit was a narrative that Wall Street analysts had grimly dubbed the “SaaSpocalypse.”
The fear was straightforward and, on its face, reasonable. If OpenAI and its competitors could build AI agents capable of handling customer service, IT workflows, and sales operations, why would enterprises keep paying for expensive SaaS subscriptions? The market priced in a worst-case scenario where agentic AI would hollow out the value proposition of companies like ServiceNow and Salesforce entirely.
