This paper explores the impact of digital transformation on the corporate sustainable growth, analyzing its underlying mechanisms through the lenses of information asymmetry theory, transaction cost theory, and the resource-based view. Using panel data from A-share listed enterprises on the Shanghai and Shenzhen stock exchanges spanning 2013 to 2023, a fixed-effects model is employed for empirical analysis. The results demonstrate that digital transformation significantly enhances enterprises’ sustainable growth. Mechanism analysis further reveals that human capital and financing constraints serve as partial mediators in this relationship. Additionally, it is found that government subsidies positively moderate the effect of digital transformation on sustainable growth. These findings shed light on the pathways through which digital transformation affects corporate sustainability, providing valuable insights for enterprises aiming to harness digital technologies for sustainable growth and for policymakers in the design of supportive policies.