ServiceNow Shares Surge 9% on Strong Enterprise AI Momentum

ServiceNow, Inc. shares rose 9% on Thursday, as investors rotated into large-cap technology stocks and responded to positive enterprise software signals from Salesforce, Inc.

• ServiceNow stock was among the best performers of the day. Why is NOW stock surging?

Salesforce Results Boost Enterprise Software Sector Sentiment

Salesforce shares jumped after reporting second-quarter results that beat on both the top and bottom lines, issuing an optimistic outlook, and announcing a new "Claude Force" partnership with Anthropic.

CEO Marc Benioff also highlighted that Salesforce achieved its strongest net new annual contract value growth in four years, with Agentforce usage up sixfold and Slack bookings seeing triple-digit growth. These optimistic remarks lifted overall sentiment across the workflow and enterprise software sector, including ServiceNow.

Broad market strength also provided a tailwind. The technology sector rose 2.6%, the Nasdaq gained 1.07%, and the S&P 500 advanced 0.6%. ServiceNow outperformed both the sector and the broader market.

Analyst Consensus and Recent Rating Changes: The stock carries a Buy rating with an average price target of $140.39, and a target range of $72 to $248. Recent analyst actions include:

BofA Securities: Buy

TD Cowen: Buy

Wells Fargo: Overweight

Major ETF Holdings

iShares Expanded Tech-Software Sector ETF: 4.02% weight

Global X Cloud Computing ETF: 4.12% weight

GraniteShares 2x Long NOW Daily ETF: 66.65% weight

Importance: Given ServiceNow's significant weight in these funds, any notable inflows or outflows from these ETFs could trigger automatic buying or selling of the stock.

NOW Stock Price Action

NOW price action: As of Thursday's writing, ServiceNow shares were up 9.14% at $137.30.