Goldman Sachs Rates ServiceNow Buy with $216 Target as Q4 Revenue Rises 20.5%
Goldman Sachs assigned ServiceNow a Buy rating and $216 target after Q4 revenue rose 20.5% YoY to $3.6 billion and subscription sales climbed 21% to $3.5 billion. Management forecasts 20.5%–21% subscription growth in 2026, driven by AI partnerships with Fiserv and Panasonic Avionics and planned Armis and Veza acquisitions.
1. Addition to Conviction List and Analyst Outlook
Goldman Sachs added ServiceNow to its US Conviction List with a Buy rating and set a $216 share target. The firm projects 20% organic revenue growth annually through 2029, reflecting confidence in the company’s expansion into new workflow and AI domains.
2. Strong Q4-2025 Financial Performance
In Q4 2025, total revenue reached $3.6 billion, up 20.5% year-over-year, while subscription revenue jumped 21% to $3.5 billion. Current remaining performance obligations increased 25% to $12.9 billion and total remaining performance obligations rose 26.5% to $28.2 billion.
3. 2026 Subscription Revenue Guidance and Strategic Partnerships
ServiceNow’s management forecasts subscription revenue growth of 20.5%–21% for fiscal 2026. Growth drivers include AI-embedded ServiceNow Assist deployments with Fiserv in financial services operations and IT service management, plus AI-driven CRM integration with Panasonic Avionics.
4. Expansion Through Acquisitions
Following the December 2025 closing of the Moveworks acquisition, ServiceNow plans to complete its purchases of Armis and Veza in the first half of 2026. Armis will enhance AI cybersecurity offerings, while Veza will strengthen AI-driven workflow automation capabilities.