ServiceNow NOW shares climbed about 12% in midday trading Friday as investors rotated back into software companies following a series of earnings reports and growing confidence around enterprise AI adoption.

The rally spread across the broader software sector after executives at the Jefferies Software, Internet and AI conference discussed how businesses are increasingly integrating AI tools into existing platforms rather than treating them as standalone products. ServiceNow executive Amit Zavery said customers are looking for centralized systems that can monitor AI usage, costs and operational activity together with traditional software services.

Snowflake (SNOW) added another 4.5% after soaring 36% in the previous session on earnings. Microsoft MSFT rose nearly 4% ahead of its Build 2026 developer event next week, while Oracle ORCL gained about 8%.

Other enterprise software companies also moved higher. Atlassian (TEAM) jumped 11%, GitLab GTLB climbed 7.5% and monday.com MNDY advanced 6%.