ServiceNow Inc (NYSE: NOW) shares rose 9.14% to $137.30 in Thursday trading, outperforming the broader market as investors rotated into large-cap technology stocks following upbeat signals from enterprise software peer Salesforce Inc.

The rally was driven by Salesforce’s second-quarter fiscal 2027 earnings beat and its announcement of a new "Claude Force" partnership with Anthropic. The Technology sector gained 2.6%, while the Nasdaq rose 1.07% and the S&P 500 advanced 0.6%.

Salesforce Results Lift Enterprise Software Sentiment

Salesforce posted a double beat for the quarter, reporting record net sales of $11.35 billion and adjusted earnings per share of $5.90, significantly surpassing the Wall Street estimate of $3.27. The company also raised its full-year fiscal 2027 revenue guidance by $200 million.

CEO Marc Benioff highlighted Salesforce’s strongest net new annual order value growth in four years. He noted sixfold growth in Agentforce usage and triple-digit Slack bookings growth, signaling rapid adoption of AI offerings.

Executive Commentary on AI Scaling

During the earnings call, Salesforce Chair and Chief Executive Officer Marc Benioff emphasized the acceleration of enterprise AI deployment. He noted that customers are expanding their footprint with the company to automate operations and drive margin expansion as agentic AI transforms business operations.

President and Chief Financial Officer Amy Weaver underscored the structural strength across cloud infrastructure, citing strong cash flow and expanding margins driven by disciplined execution. She highlighted that momentum across AI and Data Cloud offerings reinforces Salesforce’s position as a foundational platform for modern enterprise transformation.

Analyst Consensus and ETF Exposure

ServiceNow carries a Buy rating with an average price forecast of $140.39 based on 50 analysts, with targets ranging from $72 to $248. Recent analyst actions include:

• BofA Securities: Buy (Raises target to $150 on Aug. 19)
• TD Cowen: Buy (Maintains target to $140 on Aug. 17)
• Wells Fargo: Overweight (Raises target to $175 on Aug. 12)

ServiceNow is a significant holding in several technology-focused ETFs, meaning fund flows can impact stock price action:

• iShares Expanded Tech-Software Sector ETF (IGV): 4.02% Weight
• Global X Cloud Computing ETF (CLOU): 4.12% Weight
• GraniteShares 2x Long NOW Daily ETF (NOWL): 66.65% Weight

What the Numbers Show

The magnitude of Salesforce’s earnings beat—adjusted EPS of $5.90 versus an estimate of $3.27—signals a significant upward revision in market expectations for enterprise software profitability. This divergence suggests that AI-driven efficiency gains are translating into immediate bottom-line improvements rather than just top-line growth, providing a positive read-through for peers like ServiceNow that operate in similar workflow automation spaces.

ServiceNow Inc (NYSE: NOW) shares jumped 3.37% to $130.04 in after-hours trading on Wednesday, following an expanded multi-year partnership with Tech Mahindra aimed at accelerating enterprise AI adoption.

The collaboration pairs ServiceNow’s AI platform with Tech Mahindra’s implementation expertise. Under a "Client Zero" approach, Tech Mahindra and its parent, Mahindra & Mahindra Group, will serve as a proving ground for new AI tools before broader customer rollout.

Partnership Structure and Operational Scale

Tech Mahindra currently runs its global IT operations on the ServiceNow platform, processing over 100,000 support cases a month across 90 countries. This existing infrastructure provides the data volume necessary to test new AI capabilities in a live environment.

ServiceNow CEO Bill McDermott highlighted the operational efficiency gains already achieved through this integration. He cited a roughly 25% efficiency gain in first-level IT support and lower costs at Tech Mahindra as evidence of the model's viability.

Tech Mahindra CEO Mohit Joshi stated the expanded deal provides customers with the technology, industry expertise, and governance required for responsible AI deployment while driving measurable productivity.

Analyst Sentiment and Recent Activity

Wall Street grew increasingly optimistic on ServiceNow through August. On CNBC’s “Mad Money Lightning Round” Tuesday, financial commentator Jim Cramer recommended selling half of ServiceNow and letting the rest run.

Technical Momentum and Price Action

In the regular session, NOW closed at $125.80, down 0.94%. The after-hours rally positions shares above key technical averages:

• 10.3% above the 20-day moving average of $118.50
• 20.4% above the 50-day moving average of $108.49
• 8.4% above the 200-day moving average of $120.58

Momentum indicators show the MACD line crossing above its signal line with a positive histogram, suggesting buying interest is gaining strength. However, the 50-day average remains below the 200-day average, indicating the longer-term trend has not fully reversed.

Traders are monitoring $139 as resistance and $121 as support near the 200-day average. The Relative Strength Index (RSI) stands at 58.43. ServiceNow has a market capitalization of $130.06 billion, with a 52-week high of $194.73 and a low of $81.24. The stock has dropped 29.17% over the past 12 months and is currently positioned at 39.26% of its 52-week range.

What the Numbers Show

The partnership leverages significant existing operational density rather than starting from scratch. With Tech Mahindra already processing over 100,000 monthly cases on the platform, the "Client Zero" strategy utilizes established data flows to validate AI tools, reducing the typical friction associated with pilot-to-production transitions.