DOGE Has Slashed Federal Spending. That’s Helped This 1 ‘Strong Buy’ Stock Outperform.

Over the past few months, cost-cutting measures in the federal government have become a top priority. Earlier this year, President Donald Trump launched the Department of Government Efficiency (DOGE) to strengthen oversight and eliminate “waste.” As part of this effort, agencies are turning to technology providers that can modernize systems and improve efficiency.

One of the biggest beneficiaries of this push is ServiceNow (NOW). Its cloud-based workflow automation platform helps federal departments update legacy systems and tighten controls. ServiceNow has capitalized on the drive to reduce federal spending without disrupting essential services, with public-sector bookings soaring and a Q1 2025 earnings beat that exceeded Wall Street’s expectations. By streamlining procurement, case management, and IT operations, ServiceNow enables agencies to do more with less, fully aligning with the Department of Government Efficiency mandate.