ServiceNow (NOW) reported "strong" Q3 results that reflected "healthy enterprise demand," despite investor fears concerning the company's momentum in the artificial intelligence space, RBC Capital Markets said in a note Thursday.

The company reported late Wednesday Q3 adjusted earnings of $4.86 per diluted share, up from $4.82 a year earlier. Revenue for Q3 was $3.4 billion, up from $2.79 billion a year earlier.

The analysts said they continue to believe AI represents a tailwind for the enterprise IT cloud company's long-term growth and that ServiceNow is seen as a "strong contender" in becoming "the AI operating system."

The investment firm maintained an outperform rating on the stock with a $1,200 price target.

Shares were up 4.4% in recent Thursday trading.

Price: 951.86, Change: +40.16, Percent Change: +4.41