Goldman Sachs Likes ServiceNow's (NOW) "Robust Expansion Opportunities in New Domains"

ServiceNow Inc. (NYSE:NOW) is one of the 11 Best Beaten Down Growth Stocks to Buy Now.

On February 2, Goldman Sachs added ServiceNow to its US Conviction List, citing its belief that the company can grow 20% YoY organically through 2029, given its “still robust expansion opportunities in new domains.” The firm currently has a Buy call on the shares, with a target price of $216.

This addition to the US Conviction List came after ServiceNow released its Q4-2025 results last January 28. Their earnings briefing showed revenue metrics growing at over 20% across the board. Total revenue grew 20.5% YoY to $3.6 billion (from $3.0 billion), subscription revenue grew 21.0% YoY to $3.5 billion (from $2.9 billion), current remaining performance obligations grew 25.0% YoY to $12.9 billion (from $10.3 billion), and remaining performance obligations grew 26.5% YoY to $28.2 billion (from $22.3 billion).

For 2026, ServiceNow’s management expects to grow subscription revenue by 20.5%-21.0%. This growth will primarily be driven by industry expansion through strategic partnerships. On January 28, ServiceNow announced two strategic partnerships. The first is with Fiserv, under which Fiserv will expand its use of an AI-embedded ServiceNow Assist for financial services operations (FSO) and information technology service management (ITSM). The second is with Panasonic Avionics Corporation, wherein Panasonic will use ServiceNow’s AI-driven customer relationship management software.

In addition to organic growth, ServiceNow has two acquisitions in the pipeline, in addition to the Moveworks acquisition, which closed on December 15. The first is Armis, which will allow ServiceNow to expand its presence in the AI cybersecurity space. The second is Veza, which will enhance ServiceNow’s AI-driven workflow capabilities. Both deals are expected to close in the first half of 2026.

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.

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