Investment firm BTIG noted that a channel survey conducted ahead of ServiceNow's second fiscal quarter earnings release indicates a “substantial” positive shift in market sentiment regarding its positioning in artificial intelligence (AI). Analyst Allan Verkhovski wrote that while ServiceNow’s transition to a three-tier subscription model is not mandatory, the survey suggests the company is benefiting through early renewals from existing customers and widespread acceptance of double-digit price increases when upgrading to new tiers with AI capabilities. Verkhovski maintains a 'Buy' rating with a price target of $150, and stated the company is “shifting greater focus” toward the high-end market. He added that conflicts in the Middle East had impacted on-premises deals, causing subscription revenue in the first quarter to come in slightly below expectations, but under current more cautious guidance, the company has potential for across-the-board upside, with the U.S. federal government vertical showing strong performance and Moveworks experiencing exceptionally robust demand. The survey also noted the company is proceeding with its workforce reduction plan, incorporated during its investor day earlier this year. Verkhovski expects the second quarter to serve as a strong initial phase of this transition.