SANTA CLARA, California, August 27, 2026, 10:37 EDT — ServiceNow’s stock soared 9%, translating to an added $11.7 billion in market value as Salesforce’s recent AI-driven financial results sparked a broad revaluation of software sector stocks.
- ServiceNow stock gained 9.03%, reaching $137.16 during early trading in New York.
- The action increased market value by approximately $11.7 billion.
- The surge closed about 69% of the distance to the previous analyst target.
- ServiceNow’s chief financial officer is scheduled to speak at 2:40 p.m. EDT Thursday.
ServiceNow (NYSE: NOW) stock rose 9.03% to $137.16 as of 10:37 a.m. EDT, boosting its market capitalization by roughly $11.7 billion. Trading volume hit 10.5 million shares, accounting for nearly 65% of typical daily activity real-time market data.
Shares of Salesforce (NYSE: CRM) jumped over 20% at the start of trading after the company released its quarterly earnings. Investors viewed the results as a sign that established software companies are able to profit from generative AI.
Salesforce reported that annual recurring revenue from Agentforce and Data 360 approached $3.9 billion, marking a year-over-year increase of more than 210%. Agentforce’s ARR surpassed $1.5 billion, climbing over 240% Salesforce results.
The company lifted its revenue outlook for fiscal 2027 to a range between $46.1 billion and $46.4 billion, suggesting growth of 11%-12%. The cross-read is significant as ServiceNow markets its proprietary AI products via enterprise subscriptions.
ServiceNow started Thursday reporting robust underlying expansion. Subscription revenue for the second quarter grew 24.5% to $3.877 billion. Current remaining performance obligations advanced 21% to $13.20 billion ServiceNow results.
| ServiceNow investor measure | Latest reading | Reference point |
|---|---|---|
| Share price | $137.16 | $125.80 prior close |
| Consensus target | $142.23 | 3.7% higher than latest price |
| Q2 subscription revenue | $3.877 billion | Rose 24.5% from a year ago |
| Q2 cRPO | $13.20 billion | Increased 21% compared with last year |
| FY2026 subscription outlook | $15.760-$15.780 billion | Reported growth of 22.5% |
| Forward P/E | 27.76 | Trailing P/E 78.60 |
The market response altered the short-term payout. ServiceNow ended Wednesday at $125.80, with an average analyst target of $142.23, representing a potential upside of $16.43. Thursday’s advance of $11.36 accounted for about 69% of that difference, reducing the remaining potential to $5.07.
Wall Street holds an upbeat yet divided outlook. Forty-nine analysts assign a “Strong Buy” consensus, with their price targets spanning from $72 to $248. Bank of America has most recently lifted its target to $150 analyst estimates.
The U.S. search term “now stock” also cited ServiceNow’s broadened collaboration with Tech Mahindra (NSE: TECHM). The companies unveiled the deal on August 20 rather than on Thursday. Tech Mahindra reported its deployment handles over 100,000 monthly cases spanning 90 countries.
The collaboration offers a commercial demonstration of value. Tech Mahindra stated that ServiceNow workflows are utilized by 150,000 employees, and approximately 25% of first-level support tasks have been streamlined partnership announcement.
ServiceNow projects third-quarter subscription revenue in the range of $3.975 billion to $3.980 billion. The company anticipates approximately 20% constant-currency cRPO growth. Its guidance for the full year suggests a free-cash-flow margin of 35%.
Risks: The advance on Thursday partly depends on another firm’s performance. ServiceNow’s forward P/E stands at 27.76, with consensus upside now at 3.7%. Any deceleration in cRPO or softer conversion on AI may undo the recent re-rating.
The upcoming same-day test will be led by management. Chief Financial Officer Gina Mastantuono is set to speak at the Deutsche Bank technology conference at 11:40 a.m. PDT, or 2:40 p.m. EDT conference schedule.
