ServiceNow (NOW) faces "mostly positive trends," backed by its solid automation platform, proprietary data, strong enterprise integration, and its own fast-growing AI business, while concerns about AI-driven disruption appear "overdone," Oppenheimer said Wednesday in a report.

"Activity and demand trends, AI business momentum, performance, and execution remained strong" in Q2, supporting "modest upside" to consensus estimates, the report said. Oppenheimer projected a 22% revenue increase to $3.93 billion with pro forma EPS of $0.86.

Industry checks point to solid business activity and pipeline growth, and robust Q2 bookings, with potential upside to 2026 guidance, Oppenheimer said.

ServiceNow is well positioned for valuation expansion as software sentiment improves and AI grows to more than 10% of revenue, the report said.

Oppenheimer raised its price target on ServiceNow stock to $140 from $130 and reiterated its outperform rating. Q2 results are expected July 22.

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