ServiceNow Surges 6%, Salesforce Climbs 4% as Government AI Deals Lift Enterprise Software
Shares of ServiceNow and Salesforce rose on Friday amid a surge in government AI deal activity. ServiceNow's stock climbed 6% following strong Q2 results, including $3.88 billion in subscription revenue and an accelerated milestone for its AI annual contract value crossing $1 billion. The company also raised full-year guidance to at least $15.755 billion in subscription revenue. Salesforce gained 4%, driven by a newly announced $1.6 billion, three-year Department of Veterans Affairs deal using Agentforce and other platforms. This follows strong Q1 FY2027 performance for Salesforce's AI products, including a 205% year-over-year increase in Agentforce ARR to $1.2 billion. The broader market is seeing renewed interest in enterprise software as government spending on AI accelerates. Oracle also recently secured a $7 billion Pentagon contract, reinforcing the trend and boosting performance of ETFs like IGV that hold both ServiceNow and Salesforce.
Topics: AI_deals enterprise_software government_contracts stock_performance