ServiceNow’s CFO said the forecast for subscription revenue is prudent. And one analyst cheered the company’s momentum with large deals.

ServiceNow (NYSE: NOW) is one of the most well-known software companies. It is in the cloud and data storage industry, so it has been quite a hot name over the past few months. In fact, NOW stock is still up 25% despite the recent decline.

ServiceNow Inc. gave a fiscal-year sales outlook that fell short of expectations, saying it is focused on fueling adoption of new generative artificial intelligence products rather than generating significant revenue for those tools in the near future.