ServiceNow's (NOW) strong execution and demand for its workflow automation platform are helping to counter broader economic hurdles, BofA Securities said Wednesday in a report.

ServiceNow's "very solid" Q1 results beat expectations, and "the haircut to guidance for the remainder of the year was less than feared, given the seemingly choppy macro," the report said.

"Large deals were again a strength" in Q1 with 508 contracts topping $5 million, up 10 from Q4, while federal and manufacturing sectors "were relatively unaffected by DOGE and tariffs," BofA said.

"Commentary suggests that much of the added conservatism landed on the federal vertical, which should provide some assurance to investors," the report said.

An improving economic outlook and boosts from AI and Pro Plus features are expected to drive revenue and backlog growth, the report said.

BofA maintained its buy rating on ServiceNow's stock and raised its price target to $1,085 from $1,025.

ServiceNow shares jumped 15% in recent Thursday trading.

Price: 934.67, Change: +121.97, Percent Change: +15.01