Goldman Sachs Likes ServiceNow’s (NOW) “Robust Expansion Opportunities in New Domains”

Core Insights - ServiceNow Inc. has been added to Goldman Sachs' US Conviction List, with expectations of 20% YoY organic growth through 2029 due to robust expansion opportunities in new domains [1][8] - The company reported Q4-2025 results showing total revenue growth of 20.5% YoY to $3.6 billion, with subscription revenue growing 21.0% YoY to $3.5 billion [2] - Management anticipates subscription revenue growth of 20.5%-21.0% for 2026, driven by strategic partnerships [3] Financial Performance - Total revenue increased from $3.0 billion to $3.6 billion, marking a 20.5% YoY growth [2] - Subscription revenue rose from $2.9 billion to $3.5 billion, reflecting a 21.0% YoY increase [2] - Current remaining performance obligations grew from $10.3 billion to $12.9 billion, a 25.0% YoY increase, while remaining performance obligations increased from $22.3 billion to $28.2 billion, a 26.5% YoY growth [2] Strategic Initiatives - ServiceNow announced two strategic partnerships on January 28, one with Fiserv for AI-embedded solutions in financial services and IT service management, and another with Panasonic Avionics for AI-driven customer relationship management [3] - The company has two acquisitions planned, including Armis for AI cybersecurity and Veza for enhancing AI-driven workflow capabilities, both expected to close in the first half of 2026 [4] Company Overview - ServiceNow Inc. provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises, founded in June 2004 and located in Santa Clara, California [5]