ServiceNow (NOW) reported strong Q1 results, beating estimates and exceeding subscription growth of over 20%, and raising full-year guidance. However, the stock fell nearly 18% following the news, with concerns about the impact of AI on the company's organic growth, margins, and valuation multiple. The company raised its full year subscription revenue outlook to $15.735-$15.775 billion, which could imply 22-22.5% year-over-year growth for the full year. Despite this, BMO Capital cut its price target from $120 to $115 but kept an Outperform rating. The key question is whether ServiceNow can reignite growth and sustain its margins enough to earn back a premium valuation. ServiceNow’s AI product, Now Assist, is moving beyond pilots and landing at scale in large accounts. The acquisition of Veza and Armis could help the company further expand its reach into an existing enterprise base and increase its total addressable wallet share across current accounts.