-- ServiceNow (NOW) is expected to report Q1 results with positive business trends, but the current artificial intelligence disruption narrative is likely to remain in place, Oppenheimer said in a Wednesday report.
Oppenheimer models Q1 revenue of $3.74 billion and pro forma EPS of $0.96.
The firm said its checks on demand activity, AI momentum, performance and execution were slightly positive for ServiceNow in the quarter.
Industry checks remain constructive for AI spending, but point to a less robust enterprise software buying environment compared with the previous quarter, the firm said.
The firm added that ServiceNow could become the first enterprise software company to generate more than 10% of revenue from AI by Q4.
Oppenheimer maintained its outperform rating on ServiceNow and lowered its price target to $130 from $175.
ServiceNow shares were 6.6% higher in Wednesday trading.
Price: $92.99, Change: $+5.20, Percent Change: +5.92%