ServiceNow shares rose 6.1% to $145.08 in morning trading on Thursday, extending gains after the company disclosed its artificial intelligence annual contract value exceeded $1 billion in the second quarter of 2026.
The advance brought the stock within striking distance of its 52-week intraday low of $81.24, reached in late 2025, and follows a mid-August appearance at the Deutsche Bank Technology Conference. During the event, ServiceNow reinforced its agentic AI strategy, which analysts said contributed to renewed confidence in the enterprise software provider’s growth trajectory.
Two major banks upgraded their outlooks on ServiceNow this week. Bank of America lifted its price target to $150 from $130 while maintaining a Buy rating. Wells Fargo raised its target to $175 from $160, also keeping an Overweight rating. The upgrades follow a broader improvement in sentiment toward large-cap enterprise software peers, including Salesforce and Snowflake, which have also seen increased investor interest.
The S&P 500 gained 0.6%, the Nasdaq advanced 0.9%, and the Dow Jones Industrial Average added 0.8% on the session, providing a constructive backdrop for risk assets. ServiceNow’s stock performance reflects ongoing optimism around AI-driven demand in the enterprise technology sector, with the company’s AI annual contract value milestone serving as a key catalyst for the latest rally.
