ServiceNow forecast slightly slower growth ahead, even as executives noted that the shakeup caused by artificial intelligence offers significant upside to the cloud-based software company.

ServiceNow Chief Financial Officer Gina Mastantuono blamed the shortfall on the strengthening of the U.S. dollar, saying that this is having a negative impact from a foreign exchange perspective. She said the company anticipates a $175 million foreign-exchange headwind on its subscription revenue in fiscal 2025.

KEY TAKEAWAYS Shares of ServiceNow are tanking 9% in premarket trading Thursday, as the software and IT services provider posted slower subscription revenue growth than it had forecast earlier and projected a slight decline in first-quarter growth.