US General Services Administration (GSA) Announces OneGov Agreement with ServiceNow (NOW)

ServiceNow, Inc. (NYSE:NOW) is one of the Best Stocks to Invest in for the Next 5 Years. On September 3, the US General Services Administration (GSA) announced a OneGov agreement with ServiceNow, Inc. (NYSE:NOW) to power the AI-first modernization for a new era of government. Notably, the ServiceNow AI Platform is expected to fuel workflow efficiencies by up to 30% considering the projections—utilising AI to streamline several business processes.

The Trump Administration remains focused on leveraging the power of AI in a bid to transform government operations and improve citizen services. The partnership with ServiceNow, Inc. (NYSE:NOW) will be supportive in streamlining government technology, fueling efficiency, and unlocking significant taxpayer savings.

As of June 30, 2025, ServiceNow, Inc. (NYSE:NOW)’s current remaining performance obligations came in at $10.92 billion, reflecting 24.5% YoY growth and 21.5% in constant currency. To give a brief perspective, cRPO refers to the contract revenue that will be recognized as revenue in the next 12 months.

Brown Advisory, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:

“ServiceNow, Inc. (NYSE:NOW), a leader in enterprise workflow automation, outperformed during the quarter following strong earnings results that exceeded Wall Street expectations. Notably, growth in the company’s Federal Government segment was particularly strong, with Net New Annual Contract Value (NNAC) up 30% year-over-year—well above expectations, which had been modest for this area. Additionally, ServiceNow’s 2025 analyst day highlighted significant momentum in AI-related revenue.”

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.