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ServiceNow jumps and Salesforce rises on large government AI deals
ServiceNow shares gained 6% to $97.36 after a Q2 milestone, while Salesforce climbed 4% to $162.56 following a reported $1.6 billion Veterans Affairs Agentforce deal.
ServiceNow shares rose 6% in Friday midday trading to $97.36, while Salesforce gained 4% to $162.56, as investors reacted to fresh government AI contract activity that lifted enterprise software sentiment. Yahoo Finance said the upside for ServiceNow was tied to a Q2 AI contract milestone, and noted the move follows steep declines over the past year. The article added that ServiceNow stock is down 40% year to date, while Salesforce shares have fallen 40.5% over the same period.
According to Yahoo Finance, Salesforce’s move was linked to a reported $1.6 billion Veterans Affairs Agentforce deal, while Oracle’s reported $7 billion Pentagon deal reinforced a broader government AI spending wave. The article also pointed to a sector rotation, saying the renewed focus is shifting from AI infrastructure names back toward application-layer software. It further cited ServiceNow’s reported Q2 FY2026 update, including 24.5% year-over-year subscription revenue growth to $3.88 billion and a 21% increase in current remaining performance obligations to $13.2 billion.
Yahoo Finance reported that ServiceNow raised its FY26 subscription revenue guidance to at least $15.755 billion, and that agentic-AI annual contract value crossed $1 billion ahead of schedule. It also said security products landed in 16 of the 20 largest deals, citing named stacks and partners including Armis and Veza, and referenced multiple analyst upgrades after the earnings release.