ServiceNow surges 6%, Salesforce climbs 4% as government AI deals reshape enterprise software landscape

Enterprise software stocks are having a moment. ServiceNow jumped roughly 6% and Salesforce climbed about 4% as both companies continue to land major artificial intelligence contracts with US government agencies. The deals driving the rally Salesforce’s crown jewel is a $5.6 billion, 10-year Indefinite Delivery Indefinite Quantity contract with the US Army, announced in January 2026. The deal focuses on AI-driven military modernization, customer relationship management, and integration of intelligent systems across defense operations. ServiceNow announced AI-powered government reinvention deployments spanning nearly all 50 US states as of July 2026. Its OneGov platform, built on a FedRAMP High-authorized AI infrastructure, secured an agreement with the General Services Administration that offers substantial discounts on AI workflow tools to government buyers. ServiceNow also bolstered its government AI capabilities through its earlier acquisition of Moveworks, which adds conversational AI features purpose-built for public sector use cases. Earlier in June 2026, ServiceNow surged more than 9% and Salesforce gained roughly 5% amid shifting sentiment around OpenAI-related competitive ...