ServiceNow (NOW) shares surged 7.17% in pre-market trading on Thursday following the company's impressive second-quarter earnings report and raised full-year guidance. The enterprise software giant demonstrated strong performance driven by artificial intelligence (AI) initiatives and robust demand for its cloud-based solutions.

The company reported second-quarter revenue of $3.22 billion, up 22.5% year-over-year and beating analyst estimates of $3.12 billion. Adjusted earnings per share came in at $4.09, significantly surpassing the consensus expectation of $3.57. Subscription revenue, a key metric for ServiceNow, reached $3.11 billion, exceeding estimates of $3.03 billion. CEO Bill McDermott highlighted the company's success with AI, stating that AI deals were up 50% sequentially in the second quarter.

In response to the robust performance, ServiceNow raised its full-year subscription revenue forecast to between $12.78 billion and $12.80 billion, up from the previous guidance of $12.64 billion to $12.68 billion. The company also provided an optimistic outlook for the third quarter, projecting subscription revenue between $3.26 billion and $3.265 billion, ahead of analyst expectations. Following the earnings report, several analysts raised their price targets for ServiceNow, with D.A. Davidson increasing their target to $1,250 from $1,150, further fueling investor optimism and contributing to the stock's significant pre-market rise.