ServiceNow shares surged 5.01% during Monday's intraday trading session, building on post-earnings momentum that has seen the stock climb steadily after delivering impressive second-quarter results.

The rally was fueled by a combination of strong fundamental performance and positive analyst sentiment. The company recently reported Q2 adjusted earnings per share of $0.90, beating the consensus estimate of $0.85 by approximately 6%, while revenue grew 24% year-over-year to $3.987 billion, also exceeding expectations. ServiceNow further raised its full-year subscription revenue guidance to a range of $15.76 billion to $15.78 billion, driven by sustained demand for AI-powered software solutions.

Multiple investment banks responded by raising their price targets, with Evercore ISI increasing to $160, HSBC to $179, and Jefferies to $140. The broader systems software sector also traded higher, providing additional tailwinds, as analysts noted ServiceNow's strong positioning to differentiate itself from traditional software peers facing AI disruption risks.