Shares of ServiceNow Inc. (NYSE:NOW) are trading higher Thursday morning following a blockbuster second-quarter earnings report from enterprise software giant Salesforce Inc.
Here’s what investors need to know.
- ServiceNow stock is moving in positive territory. What’s driving NOW shares up?
Salesforce Earnings Beat and Upgraded Guidance Lift Cloud Software Sector
Salesforce late Wednesday posted record second-quarter fiscal 2027 net sales of $11.35 billion and adjusted EPS of $5.90, significantly outperforming Wall Street’s $3.27 estimate.
Salesforce also raised its full-year fiscal 2027 revenue guidance by $200 million and highlighted rapid adoption of its AI offerings. The read-through re-energized investor confidence across cloud automation providers like ServiceNow, reassuring the market that enterprise demand for digital transformation and AI workflow integration remains robust.
Salesforce Executive Commentary Highlights Enterprise AI Scaling
During Salesforce’s second-quarter earnings call Wednesday evening, Chair and Chief Executive Officer Marc Benioff emphasized the rapid acceleration of enterprise AI deployment across customer workflows:
"We delivered record second quarter results, driven by execution across our core platforms and remarkable customer adoption of our enterprise AI capabilities… As agentic AI transforms business operations, our customers are expanding their footprint with us to automate operations and drive margin expansion."
Addressing enterprise demand, President and Chief Financial Officer Amy Weaver underscored the structural strength across cloud infrastructure:
"Our focus on disciplined execution and operational excellence generated strong cash flow and expanding margins. The momentum across our AI and Data Cloud offerings reinforces our position as the foundational platform for modern enterprise transformation."
NOW Shares Rise Thursday Morning
NOW Price Action: ServiceNow shares were trading higher by 8.05% at $135.93 on Thursday, according to Benzinga Pro data.
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