ServiceNow (NYSE:) reported stronger-than-expected Q1 earnings, driving its shares up more than 10% in premarket trading Thursday.

Enterprise software company EPS (before certain costs) of $1.76 was higher than analyst estimates of $1.70 per shares. The revenue came in at $1.72 Billion, which is 27% more than the consensus estimate of $1.7 Billion.

The financial report shows that net income was $75million for the quarter. Subscriber revenue rose 26% to $1.63Billion in the quarter, well above analyst predictions of $1.62Billion. The quarter saw a 29% increase in CRPO bookings to $5.69 Billion.

ServiceNow anticipates that Q2 subscription revenues will be in the $1.67-$1.675 billion range, as opposed to analysts’ estimates of $1.675 million.

“We are in a sustained demand environment. Companies are investing with a sense of urgency in technologies that get them to the right outcomes, fast,” said CEO Bill McDermott. “It’s very clear that businesses can no longer revert to the ‘status quo.’ We’re now in a tech-to-compete world.”

BofA analyst Brad Sills said that Q1 and outlook showed “resilient strength.” The analyst reiterated a Buy rating and Top Pick designation.

“Channel feedback suggests very solid pipeline builds for creator, suggesting possible incremental growth as we move through the year. Guidance for 28% cc cRPO growth suggests that 30%+ is again achievable, with commentary indicating isolated deals pushing into Q2 from the Russia war (most of which have already closed),” Bills said.

Barclays analyst Raimo Lenschow lowered the price target to $613.00 per share from $652.00 while the Overweight rating reflects his belief in the strength of the company’s business.

“ServiceNow followed in MSFT’s footsteps and delivered solid Q1 results. While beat levels were not as high as normal due to FX and macro headwinds the management still produced better results than expected. In normal markets, this might be seen as not good enough but investor sentiment was very negative going into earnings and hence, we can see how shares start working from here again, especially considering the upcoming analyst day and customer conference (24th May),” the analyst wrote in a note.

By Senad Karaahmetovic