ServiceNow (NOW) Stock Outlook Before the December 1, 2025 Open: Q3 Beat, AI Push, Veza Deal Talk and Split Catalysts

ServiceNow, Inc. (NYSE: NOW) heads into Monday’s U.S. market open on December 1, 2025 with a potent mix of bullish fundamentals and nagging technical and valuation worries.

Over the last three days (November 28–30), investors have seen fresh analyst commentary, new algorithmic forecasts, weekend macro-style analysis, and more detail on ServiceNow’s ambitions in AI, security and M&A. That news arrives on top of a strong Q3 earnings beat, a proposed 5‑for‑1 stock split, and reports that ServiceNow is in advanced talks to buy identity‑security firm Veza for more than $1 billion. ^[1]

Here’s what you need to know about ServiceNow stock before the bell on Monday.

1. Price Snapshot: Where ServiceNow Stock Closed Before the Weekend

Because U.S. markets were closed over the weekend, the latest tradable snapshot for ServiceNow comes from Friday, November 28, 2025:

Last close:$812.41, up about 1.2% on the day
Intraday range: roughly $805–$814
Approximate market cap: about $170+ billion ^[2]

Performance and trend metrics:

Roughly 33% below its 52‑week high of $1,198.09, set in late January 2025 ^[3]
Down ~24% year‑to‑date, versus a ~20% gain for the Nasdaq Composite over the same period ^[4]
Up only around 5% over the last 12 months, versus roughly 21% for the Nasdaq, underscoring clear underperformance vs the broader tech benchmark ^[5]
Trading below both its 50‑day and 200‑day moving averages since late July, a classic sign of a stock still in a downtrend even after a recent bounce ^[6]

On valuation, estimates differ slightly by data provider, but ServiceNow’s trailing P/E is in the high‑80s to mid‑90s, several times the software industry average around 30x. Macrotrends pegs the P/E at about 86.6x as of November 30, 2025, while Simply Wall St cites ~96x in its valuation work. ^[7]

That’s the context in which Monday’s pre‑market trading will play out: solid business momentum, but a stock that’s slid sharply since earnings and is still priced at a premium.

2. Fundamentals: Q3 2025 Beat, Raised Guidance and a 5‑for‑1 Stock Split

Most of the late‑November analysis still starts with ServiceNow’s Q3 2025 earnings, reported on October 29. ^[8]

Key Q3 numbers (quarter ended September 30, 2025):

Subscription revenue: $3.299 billion, up 21.5% year over year
Total revenue: $3.407 billion, up 22%
Adjusted EPS:$4.82, roughly 14% above consensus and up nearly 30% year over year
Current RPO (cRPO): $11.35 billion, up 21%
Total RPO: $24.3 billion, up 23%
Free cash flow: $592 million, FCF margin 17.5%, slightly improved vs last year ^[9]

Guidance tightened the bullish story:

2025 subscription revenue: $12.835–$12.845 billion, ~20.5% growth vs 2024
Target non‑GAAP operating margin:31%
Target free cash flow margin:~34%
AI products annual contract value (ACV) expected to exceed $0.5 billion in 2025 ^[10]

And then there’s the headline that has retail traders’ attention:

5‑for‑1 stock split on deck

Management has proposed a 5‑for‑1 stock split, to be voted on at a special shareholder meeting on December 5, 2025. If approved, each existing share would become five shares, with the price per share falling to roughly one‑fifth of current levels while the company’s overall value stays the same. TS2 Tech+1

Several late‑November articles and notes explicitly frame ServiceNow as a “stock‑split growth stock”, with some retail‑facing outlets highlighting potential upside of 50–60% based on Street price targets. ^[11]

3. AI Strategy and Partnerships: Microsoft, NTT DATA, Figma and More

ServiceNow’s investment case is increasingly an AI platform story, not just a workflow software story.

Recent partnerships and announcements being digested into the share price include:

Microsoft integration: On November 18, ServiceNow announced that its AI Control Tower will integrate with Microsoft Foundry and Copilot Studio, and that its AI agents will interoperate with Microsoft Agent 365 across Microsoft 365 workloads. The idea is to orchestrate and govern AI agents across both ecosystems from one control plane, with general availability for key features expected by year‑end 2025. ^[12]
NTT DATA strategic expansion: On November 5, ServiceNow named NTT DATA a strategic AI delivery partner and committed to co‑developing and co‑selling AI‑powered workflow solutions. NTT DATA will also scale its own use of the ServiceNow AI Platform to drive productivity across its operations. ^[13]
Figma collaboration: A November announcement detailed a strategic collaboration whereby Figma designs can be used directly as prompts for ServiceNow’s Build Agent, which then generates enterprise‑grade applications on the Now Platform—aimed at compressing “design to deployment” timelines. TS2 Tech

Despite that drumbeat of AI news, Barchart notes that ServiceNow shares still fell about 2.1% on November 18, the day of the Microsoft announcement, indicating that near‑term sentiment remains cautious even as the strategic narrative improves. ^[14]

4. M&A and Security: Veza Deal Talk and “Second‑Order” Prompt Injection

Veza: plugging the AI identity and permissions gap

One of the biggest late‑November headlines is that ServiceNow is reportedly in advanced talks to acquire Veza, an identity‑security startup, for more than $1 billion. ^[15]

Key details from reporting:

Veza maps permissions across enterprise systems, helping organizations see which users, applications and AI agents can access which data. ^[16]
The companies already share more than 250 joint customers, and ServiceNow Ventures invested in Veza in 2023. ^[17]
Integrating Veza would give ServiceNow a native way to govern AI agents’ access to data as they automate more tasks—critical as ServiceNow deploys thousands of agents across IT, HR, customer service and security operations. ^[18]

Analysts quoted in CIO coverage argue that this would round out ServiceNow’s AI stack, pairing Moveworks’ conversational and automation capabilities with Veza’s fine‑grained authorization graph, and could pressure standalone identity vendors to respond. ^[19]

Now Assist vulnerability: “second‑order prompt injection”

On the flip side, two security reports in mid‑to‑late November highlight a risk in ServiceNow’s Now Assist AI agents:

Researchers at AppOmni showed that default configurations in Now Assist can allow “second‑order prompt injection”, where one seemingly harmless AI agent recruits another with higher privileges to exfiltrate data or change records, all without human oversight. ^[20]
The attack path exploits agent discovery and agent‑to‑agent collaboration features. A benign‑looking task can quietly trigger a privileged agent to assemble and send sensitive information to an attacker‑controlled endpoint. ^[21]

ServiceNow has reportedly treated this as expected behavior under certain default options rather than a code bug, but it did update documentation to better flag the risks. Recommended mitigations include supervised execution for privileged agents, disabling autonomous overrides, segmenting agent teams, and monitoring agent behavior. ^[22]

Heading into Monday’s open, investors will be watching whether:

The Veza deal is confirmed or further detailed, and
Large enterprise customers voice concern—or confidence—about Now Assist’s security posture.

Those two threads—governed AI vs AI security risk—are likely to be tightly linked in how the market values ServiceNow’s AI ambitions.

5. Analyst Calls and Valuation Debates (Nov 28–30 News Flow)

Late November brought a cluster of fresh opinions on NOW stock. Between November 28 and 30 specifically, several pieces stand out.

Macquarie: “Great company but only a fair stock”

On November 28, Insider Monkey, via Finviz, highlighted that Macquarie initiated coverage of ServiceNow with a Neutral rating and an $860 price target (note: the initiation itself was November 25, but the widely read summary hit feeds on the 28th). ^[23]

Macquarie’s key points:

ServiceNow is a “great company” with a strong position in SaaS and IT service management.
However, the stock trades at a premium versus software peers, and easing negative sentiment around AI‑driven SaaS disruption “could take time.” ^[24]

In short: superb business, no obvious near‑term catalyst to justify paying up further, hence Neutral.

Zacks: down 14.1% since earnings, mixed factor scores

On November 28, Zacks, via Nasdaq, published “Why Is ServiceNow (NOW) Down 14.1% Since Last Earnings Report?”, digging into why the stock slid despite a big beat. ^[25]

Highlights:

Shares are down about 14.1% in the month since Q3 results, even though earnings and revenue topped expectations.
Zacks notes strong top‑line growth but points to downward earnings estimate revisions over the last month.
Factor scores: Growth “B,” Momentum “A,” Value “F,” leading to a composite VGM score of “C.”
ServiceNow holds a Zacks Rank #3 (Hold), and Zacks expects “in‑line” returns over the next few months. ^[26]

Simply Wall St: DCF says undervalued, multiples say stretched

Also dated November 28, Simply Wall St published a detailed piece titled “How Will New AI Integrations Shape ServiceNow’s Value After a 12% Share Decline?” ^[27]

Key takeaways:

Over the last month, NOW shares are down ~12%, and roughly 23.9% year‑to‑date despite a 94%+ gain over three years. ^[28]
A discounted cash flow model estimates intrinsic value at $936.54 per share, implying the stock trades at about a 14.3% discount, i.e., undervalued on that basis. ^[29]
However, ServiceNow’s P/E near 96x is far above the software industry average (~30.8x) and above Simply Wall St’s “fair” multiple of 49.5x, implying overvaluation when viewed through earnings multiples alone. ^[30]

The article’s conclusion: the valuation story depends heavily on what you believe about AI‑driven growth durability, not just traditional ratios.

Barchart: underperforming the Nasdaq but still a Strong Buy on the Street

In a November 27 Barchart column that continued circulating on November 28–30, analyst Kritika Sarmah asked bluntly: “Is ServiceNow Stock Underperforming the Nasdaq?” The answer is yes—by a wide margin—but with nuance. ^[31]

Over the past 52 weeks, NOW is up about 5% vs 21% for the Nasdaq Composite, and down ~24% YTD vs a ~20% Nasdaq gain.
The stock has been below its 50‑ and 200‑day moving averages since late July, confirming a bearish technical trend.
Yet, Barchart notes that about 40 analysts collectively rate the stock “Strong Buy” with a mean price target near $1,160, implying roughly 45% upside from current levels. ^[32]

6. Wall Street Targets and Quant Forecasts: How Much Upside Is Priced In?

Street price targets: 38–44% upside, on average

Across major aggregators, late‑November data shows robust analyst targets:

MarketBeat: 38 analysts, “Moderate Buy” rating, average 12‑month target $1,149.67, implying ~41.6% upside from around $812. ^[33]
TipRanks: 29 analysts over the last three months, consensus “Strong Buy”, average target $1,154.04 (high $1,315, low $734), about 43.8% upside vs a last price just over $800. ^[34]
StockAnalysis: 31 analysts, “Strong Buy,” average target $1,122.23, or ~38% above the current price; 5‑year revenue CAGR forecast ~18.6% and EPS CAGR ~36.6%. ^[35]

In other words, fundamental analysts still see plenty of runway, even as several have begun stressing valuation and sentiment risks.

Technical and AI‑driven forecasts: near‑term caution

The technical and algorithmic side of the house is noticeably cooler:

TipRanks technical analysis (as of November 25) classifies NOW as a “Sell” overall, with moving average signals at “Strong Sell”: the stock price (~$813) sits well below the 20‑, 50‑, 100‑ and 200‑day moving averages, while RSI near 31 is close to oversold but not yet a screaming buy. ^[36]
StockTradersDaily (November 29) describes sentiment as “near‑term neutral” but weak in the mid and long term, and highlights a mid‑channel oscillation with AI‑generated support and resistance around $764.66, $812.41, $876.31 and $979.17. It also points to an eye‑catching “50.5:1 risk‑reward setup” for a specific long trade aiming for a 14.6% gain with only 0.3% defined risk. ^[37]
CoinCodex’s algorithmic model (updated November 30) labels sentiment bearish, with a Fear & Greed index at 39 (“Fear”), and projects that NOW will be roughly flat on December 1 (forecast $812.41) before sliding about 3.3% over the week toward $785.55. It still expects about 4.7–5% upside for December overall, with a projected average price around $823 and a month‑end target in the mid‑$840s. ^[38]

Those models emphasize what the chart already tells you: even if the next move isn’t a crash, the dominant trend is still down to sideways until proven otherwise.

7. Stock‑Split Hype vs. High‑Multiple Reality

Several mainstream and retail‑oriented outlets over the past few days have lumped ServiceNow into the “stock‑split winners” bucket—grouping it with names like Netflix as potential long‑term compounders that could benefit from renewed investor attention once the split takes effect. ^[39]

The bullish narrative going into Monday’s open looks roughly like this:

Strong and consistent revenue growth above 20% with expanding free cash flow margins. ^[40]
A convincing AI platform strategy, underlined by deep integrations with Microsoft, expanded partnerships with NTT DATA and others, and acquisitions like Moveworks—and potentially Veza—to build a full-stack AI workflow + identity solution. ^[41]
Large enterprise customer base with growing deals over $1 million and a rising number of customers above $5 million in annual contract value, pointing to durable demand. ^[42]
A proposed 5‑for‑1 stock split likely to make the stock feel more accessible to smaller investors, even if it doesn’t change fundamentals. ^[43]

The bear (or at least cautious) narrative that has intensified between November 28 and 30 is equally clear:

Valuation remains aggressive. Whether you look at a P/E near 90–100x or Simply Wall St’s fair multiple, ServiceNow trades at a premium multiple even after a major drawdown. ^[44]
Underperformance vs the Nasdaq is pronounced, and the stock has stayed under its long‑term moving averages for months, signaling weak technical sponsorship. ^[45]
Earnings estimate revisions have drifted down since Q3, prompting Zacks to stick with a Hold rating despite the beat. ^[46]
Macquarie’s Neutral call underscores that even bulls are struggling to find a short‑term catalyst to unlock the upside embedded in Street targets. ^[47]
The Now Assist security findings show that agentic AI brings not just opportunity but also non‑trivial operational risk that customers must manage proactively. ^[48]

8. Key Things to Watch Before the December 1, 2025 Market Open

As traders and investors prepare for Monday’s session, here are the main themes and levels the latest research suggests keeping an eye on:

1. Price reaction to Veza deal chatter

Any confirmation, denial or updated reporting around the Veza acquisition could move the stock pre‑market.
A confirmed deal would likely be framed as strategic for AI agent governance, but also raises questions about integration complexity and price paid. ^[49]

2. Security and governance narrative around Now Assist

Enterprises evaluating ServiceNow’s AI solutions will be weighing the AppOmni “second‑order prompt injection” findings against ServiceNow’s guidance on configuration and monitoring. ^[50]
Expect questions on whether identity‑centric tools like Veza are part of a broader plan to harden the platform against exactly these kinds of risks.

3. Technical levels and short‑term trading bands

Based on Barchart, TipRanks and StockTradersDaily, several levels stand out:

Short‑term support: around $805–$806, with deeper support zones flagged near $785 and $765. ^[51]
Near‑term resistance: around $823, then $876 and $979 on a multi‑week horizon. ^[52]
CoinCodex’s model suggests little movement on Monday but a potential drift lower over the week toward the high‑$780s, even as its month‑long forecast implies slight upside by the end of December. ^[53]

How the stock trades around these levels during early December—especially heading into the December 5 stock‑split vote—will be closely watched by technical traders.

4. Split‑driven sentiment shift

Any sign of retail inflows linked to the upcoming 5‑for‑1 split could support the stock even without new fundamental news.
On the other hand, some institutions may see any split‑driven rally as an opportunity to trim positions in a still‑expensive name.

9. Bottom Line: Strong Business, Split Catalyst – but Still a “Show Me” Stock

Putting together the November 28–30 news and analysis, ServiceNow enters Monday’s open as a classic “great company, debated stock”:

Fundamentals: Q3 showed powerful growth, expanding margins and rising AI contribution. Guidance points to another year of 20%+ subscription growth. ^[54]
Strategy: Deep integrations with Microsoft and NTT DATA, plus moves like Moveworks and potentially Veza, aim to make ServiceNow the AI operating system for enterprise workflows—with identity and governance built in. ^[55]
Valuation and sentiment: The stock trades at a rich multiple, has underperformed the Nasdaq significantly in 2025, and faces mixed short‑term signals from both technical indicators and factor models like Zacks’. ^[56]
Street view: Most fundamental analysts still rate NOW a Buy or Strong Buy and see ~40–45% upside over 12 months, but the freshest coverage from Macquarie and others stresses that investors may need patience for the narrative to catch up to the valuation. ^[57]

For anyone watching ServiceNow before Monday’s open, the key question isn’t whether the business is healthy—it clearly is—but whether late‑2025 AI optimism, security challenges and a looming stock split will be enough to reverse a months‑long stretch of technical underperformance.

Disclaimer: This article is for information and news purposes only and does not constitute financial, investment or trading advice. Always do your own research or consult a licensed financial professional before making investment decisions.

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