ServiceNow (NOW) surged 5.01% during intraday trading on Tuesday, joining a broad rally across the software-as-a-service sector. The stock extended its post-earnings momentum as multiple catalysts continued to fuel buying interest.

The strong move follows the company's recently reported second-quarter results, which beat expectations across the board. Adjusted earnings per share came in at $0.90, topping the consensus estimate of $0.85, while revenue reached $3.987 billion, up 24% year-over-year. ServiceNow also raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, reinforcing confidence in its growth trajectory. In response, several investment banks raised their price targets, with Evercore ISI lifting its target to $160, HSBC to $179, and Jefferies to $140.

Beyond the earnings beat, ServiceNow has been quietly building its artificial intelligence business for enterprises. The company recently announced a multi-year strategic partnership with TeamViewer to integrate remote connectivity solutions into its AI platform, and expanded its AI platform agreement with Experian for automated business operations. Meanwhile, a Morgan Stanley research report noted that the market's recent pessimism toward the software industry has gone too far, maintaining an attractive rating and naming ServiceNow among its most confident overweight stocks in the AI era. The broader SaaS sector also rallied on Tuesday, with peers like Workday, Autodesk, and Adobe posting significant gains.