ServiceNow (NOW) shares surged 5.02% during Wednesday’s regular trading session, building on a multi-day rally that has seen the stock climb sharply amid a strong appetite for software-as-a-service (SaaS) names.

The advance is being fueled by ongoing investor enthusiasm following the company’s second-quarter earnings report, which handily beat Wall Street expectations. Adjusted earnings per share came in at $0.90, topping the consensus estimate of $0.85, while revenue grew 24% year-over-year to $3.987 billion. The company also raised its full-year subscription revenue guidance, prompting several analysts to lift their price targets. Evercore ISI raised its target to $160, HSBC to $179, and Jefferies to $140.

In addition to the fundamental strength, a broader rotation out of semiconductor stocks and into SaaS names is providing a tailwind for the sector. Software peers including Adobe, Workday, and Snowflake also posted gains, underscoring the market’s current preference for application software. Recent strategic initiatives—such as a partnership with TeamViewer to integrate remote connectivity into its AI platform and an expanded agreement with Experian—have further reinforced confidence in ServiceNow’s growth trajectory.