ServiceNow jumps 6.4% on rotation

ServiceNow shares rose 6.4% to close at $140.98 on Monday, 14 September 2026. Investors rotated funds into enterprise software while selling AI infrastructure names. Reuters reported that ServiceNow and Adobe both climbed more than 3%, while the Philadelphia Semiconductor Index dropped nearly 6% during the session.

The company backed that rotation with solid fundamentals. ServiceNow generated $3.877 billion in second-quarter subscription revenue, marking a 24.5% increase year over year. Total remaining performance obligations reached $29 billion, while current remaining performance obligations climbed to $13.2 billion.

AI adoption also accelerated during the quarter. ServiceNow reported that its AI products exceeded $1 billion in annual contract value. That figure represents approximately 25.8% of its quarterly subscription revenue. In addition, customer deployments of agentic AI expanded ninefold over the past nine months.

Following the move, the stock traded at a 41.49% discount to GuruFocus's GF Value estimate of $240.96. That spread leaves a difference of almost $100 per share.