ServiceNow Surges 6%, Salesforce Climbs 4% as Government AI Deals Lift Enterprise Software
Enterprise software stocks ServiceNow (NOW) and Salesforce (CRM) surged on Friday, July 24, 2026, driven by government AI contract wins. ServiceNow jumped 6% after reporting strong Q2 results, with AI annual contract value crossing $1 billion ahead of schedule and subscription revenue rising 24.5% to $3.88 billion. Salesforce climbed 4% after landing a $1.6 billion, three-year Department of Veterans Affairs Agentforce deal aimed at reducing veteran appointment scheduling from 28 days to minutes. The gains come after both stocks fell over 40% year-to-date, representing an oversold rebound. The broader rotation from AI infrastructure to application-layer software is supported by Oracle's $7 billion Pentagon deal. Multiple analysts raised price targets on ServiceNow, though UBS cut its rating to Neutral citing mixed demand.
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