ServiceNow’s shares climbed 6%, while Salesforce rose 4% after both secured significant artificial intelligence contracts with U.S. government agencies, signaling a shift in the enterprise software arena.
Salesforce’s standout agreement is a massive $5.6 billion, decade-long Indefinite Delivery Indefinite Quantity contract with the U.S. Army, announced earlier this year. This contract aims to modernize military operations through AI, focusing on customer relationship management and integrating intelligent systems across defense.
Meanwhile, ServiceNow expanded its government AI footprint with deployments in nearly every U.S. state by mid-2026. Its OneGov platform, built on a FedRAMP High-authorized AI infrastructure, secured a deal with the General Services Administration that offers discounted AI workflow tools to government buyers. This positions ServiceNow strongly within the public sector’s AI modernization efforts.
ServiceNow’s acquisition of Moveworks further enhances its AI capabilities, adding conversational AI tailored for government use cases. Earlier this summer, the company’s stock surged over 9%, while Salesforce gained roughly 5%, reflecting growing investor confidence amid shifting perceptions about OpenAI-related competition.
Both companies participate in the U.S. Tech Force initiative, launched in late 2025 to attract skilled talent for federal AI projects. crypto firms like Coinbase and fintech company Robinhood are also part of this initiative, indicating a broader ecosystem of technology companies engaging with government AI efforts.
For investors, firms holding FedRAMP authorization and established government relationships have an edge in what appears to be a multi-year federal AI spending cycle. ServiceNow’s FedRAMP High status provides a security barrier that new entrants will find challenging to overcome. Meanwhile, the involvement of crypto companies in the same federal programs hints at their potential to secure government contracts in the future.
