- ServiceNow shares rose 6% following a strong Q2 FY2026 report where subscription revenue grew 24.5% year-over-year to $3.88 billion and AI annual contract value exceeded the $1 billion target early.
- Salesforce shares climbed 4% after the company landed a three-year, $1.6 billion Agentic Enterprise License Agreement with the Department of Veterans Affairs to automate veteran appointment scheduling.
- The broader enterprise software sector is benefiting from a surge in federal AI spending, exemplified by Oracle's recent $7 billion Pentagon contract and increased investment in the iShares Expanded Tech-Software Sector ETF (IGV).
Quotes
“ServiceNow's exceptional Q2 results solidify our position as the fastest-growing major enterprise software and cybersecurity company.”