11:22 AM EDT, 04/23/2026 (MT Newswires) -- ServiceNow (NOW) posted strong Q1 results driven by robust AI business growth, but softer organic revenue trends and a slightly weaker margin outlook weighed on the overall forecast, Oppenheimer said in a Thursday note.

Oppenheimer noted that AI-related demand remains a key strength and could account for more than 10% of total revenue this year, potentially easing concerns about AI disruption and supporting a higher valuation multiple over time.

The analyst flagged softer Q2 guidance, slower organic growth, and margin pressure from acquisition-related costs as near-term headwinds, but still pointed to strength in the AI-driven growth pipeline and capital return activity, according to the note.

Oppenheimer said Q1 results beat consensus estimates, driven by strong subscription revenue and continued momentum in large deals and AI adoption, with the company's AI segment expected to reach $1.5 billion in revenue in 2026.

The firm maintained its outperform rating on the stock with a price target of $130.

Shares of ServiceNow were down nearly 16% in Thursday trading.

Price: 86.60, Change: -16.47, Percent Change: -15.98