Two factors that could contribute to stronger results are: an unexpected boost in ServiceNow’s agentic AI revenues and a weaker dollar tamping FX headwinds.

Shares of ServiceNow Inc. (NYSE: NOW) are surging on Tuesday. The rise comes as the S&P 500 is up 0.2% and the Nasdaq Composite is up 1%. The artificial intelligence (AI)-driven cloud computing and automation provider announced a major acquisition to bolster its AI capabilities.

Many stocks declined during the market's rout on Monday, but business software company ServiceNow ( NOW -7.85%) lost more than most. On news of yet another acquisition, investors traded out of the specialty tech stock, leaving with a loss of just under 8% on the day. That was a steeper fall than the S&P 500 index's 2.7% decline.

ServiceNow has reached a deal to buy artificial intelligence firm Moveworks for nearly $3 billion. The deal will integrate Moveworks' AI assistants with ServiceNow's applications to offer an AI-powered self-service tool for customers.