ServiceNow (NOW) shares surged 5.06% during intraday trading on Friday, extending pre-market gains as investors reacted positively to the company's strong second-quarter results and bullish analyst actions.

The rally was fueled by ServiceNow's Q2 earnings, which demonstrated accelerating AI momentum with revenue climbing to approximately $4.0 billion. The results reinforced confidence that the enterprise software company is successfully differentiating itself from legacy peers facing potential artificial-intelligence disruption. Stifel analysts noted that the Q2 print "builds confidence in the company's ability to differentiate itself from legacy software peers seen at risk of AI displacement," with AI demand coming in ahead of expectations and subscription revenue growth beating forecasts.

Adding to the positive sentiment, HSBC raised its price target on ServiceNow to $179 from $177 while maintaining a buy rating. The company had also recently raised its annual subscription revenue forecast, citing robust AI-driven demand. The combination of strong quarterly execution and growing AI tailwinds helped the stock rebound sharply from the prior session's decline.