ServiceNow (NOW) shares surged 7.38% in 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. 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.

CEO Bill McDermott highlighted the company's success with AI, stating that AI deals were up 50% sequentially in the second quarter. The strong results and outlook reflect growing confidence in ServiceNow's ability to capitalize on the increasing demand for AI-enabled enterprise solutions and cloud-based services. Following the earnings report, several analysts raised their price targets for ServiceNow, with some setting targets as high as $1,250, further fueling investor optimism and contributing to the stock's significant rise.