ServiceNow's (NOW) growth outlook remains strong despite investor concerns over risks and pricing models, Oppenheimer said in a report Thursday.

Analysts at Oppenheimer recently met with investors and ServiceNow's head of investor relations, Darren Yip, in San Francisco. The firm believes ServiceNow's growth will continue to benefit from strong core and adjacent markets, supported by a stable macro environment, leadership in generative artificial intelligence, international expansion, and industry momentum, with 2025 growth guidance serving as a baseline, the report said.

"While the Federal exposure remains an overhang on [ServiceNow] and last quarter's results and guidance left investors wanting more, we left the meeting incrementally positive on ServiceNow's ability to show better results in the [Q1] earnings-update next month," Oppenheimer said.

ServiceNow is well-positioned to achieve its Q1 guidance, supported by stable enterprise IT demand, strong AI partnerships, and multiple growth levers. While federal spending is slower in Q1, long-term prospects remain strong with expanding AI capabilities, high retention, and a large market opportunity, the report said.

Oppenheimer maintained an outperform rating on ServiceNow with a price target of $1,200.

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