ServiceNow (NOW) Stock on December 1, 2025: Q3 Beat, AI Awards, $1B Veza Deal Talk and What 2026 Price Targets Signal

Published: December 1, 2025 — informational only, not investment advice.

ServiceNow stock today: trading around $820 after a rough autumn

As of the latest trade on Monday, December 1, 2025, ServiceNow, Inc. (NYSE: NOW) is changing hands at roughly $820 per share, with intraday quotes around $818–$821. ^[1]

That puts the workflow‑software and AI platform company:

About 33% below its 52‑week high of $1,198.09 hit in late January ^[2]
Down roughly 7% over the past three months, while the Nasdaq Composite gained about 7.8% in the same period ^[3]
Down roughly 24% year‑to‑date, versus about a 20% rise for the Nasdaq ^[4]

Market cap sits around $170 billion, leaving ServiceNow firmly in large‑cap territory even after the pullback. ^[5]

In other words: the business is hitting new highs, but the stock is in a correction, trading below its 50‑day and 200‑day moving averages since late July, a pattern technicians read as an ongoing downtrend. ^[6]

Q3 2025 earnings: AI‑driven beat with upgraded 2025 outlook

ServiceNow’s current narrative starts with a strong third quarter (ended September 30, 2025):

Subscription revenue: $3.299 billion, up 21.5% year over year
Total revenue: $3.407 billion, up 22% year over year ^[7]
Current remaining performance obligations (cRPO): $11.35 billion, up 21%
Total remaining performance obligations (RPO): $24.3 billion, up 24% ^[8]

On the bottom line, ServiceNow delivered adjusted EPS of about $4.82, beating Wall Street estimates by roughly $0.60, while revenue slightly topped a roughly $3.35 billion consensus. ^[9]

Management used that momentum to raise full‑year 2025 guidance:

2025 subscription revenue is now projected at $12.835–$12.845 billion, implying around 20.5% growth
The company expects about 250 basis points of free‑cash‑flow margin expansion year over year, to roughly 34% ^[10]

Executives repeatedly framed ServiceNow as an “AI platform for business transformation”, highlighting products like Now Assist, Workflow Data Fabric and RaptorDB as ahead of plan, and pointing to 103 new deals above $1 million in annual contract value (ACV) and 553 customers generating more than $5 million in ACV. ^[11]

For many fundamental investors, those metrics reinforce the view that high‑teens to low‑20s revenue growth with expanding margins is still intact.

Five‑for‑one stock split: December 5 shareholder vote looms

On October 29, ServiceNow’s board authorized a five‑for‑one forward stock split of its common stock, contingent on shareholder approval. ^[12]

Key points:

A special shareholder meeting is scheduled for December 5, 2025, to approve an amended charter enabling the split and a proportional increase in authorized shares. ^[13]
If approved, shareholders will receive four additional shares for each existing share, with the price per share mechanically adjusting down so that overall equity value is unchanged. ^[14]

Media and analyst commentary have quickly added ServiceNow to the current “stock split winners” narrative, often pairing it with Netflix, which is implementing a 10‑for‑1 split. ^[15]

From a fundamentals standpoint, though, the split is cosmetic:

It does not change revenue, cash flow, or valuation multiples.
It may make the stock feel more approachable for smaller investors and employees, especially when combined with equity‑compensation programs.

For traders, the key question is whether split‑related buzz can change the technical downtrend or simply offer institutions a convenient selling opportunity into any rally. TS2+1

Fresh December 1 catalysts: AI accessibility award and Veza deal talk

Netty Awards: recognition for inclusive AI

On December 1, ServiceNow was named “Best Use of AI for Accessibility” at the 2025 Netty Awards for its Voice Input for Now Assist feature. ^[16]

The award is based on measurable usability gains:

Test participants with disabilities completed tasks about 41% faster using voice input
Usability scores improved by roughly 47% in formal testing ^[17]

The feature is rolling out across IT, HR and customer‑service workflows, and was co‑designed with internal accessibility communities. Beyond the feel‑good factor, this reinforces a key part of the bull thesis: ServiceNow isn’t just adding AI; it’s productizing AI in ways that drive productivity and inclusivity, which can deepen enterprise adoption and strengthen competitive moats. ^[18]

Reported $1B+ Veza acquisition talks

Also today, SC Media reported that ServiceNow is in advanced discussions to acquire identity‑and‑access‑management startup Veza in a deal valued at over $1 billion, citing The Information via SiliconANGLE. ^[19]

According to that report:

Veza focuses on securing human and machine identities, finding unused accounts, spotting excessive permissions and enforcing policies like separation of duties.
This would significantly deepen ServiceNow’s footprint in identity governance, an area adjacent to its existing strengths in vulnerability and threat management. ^[20]
The rumored price is more than four times the venture funding Veza has raised, and would follow ServiceNow’s $2.85 billion acquisition of generative‑AI platform Moveworks. ^[21]

Taken together, Moveworks plus a potential Veza deal would signal an ambition to build a full‑stack AI workflow + security + identity platform. Investors will be watching for any confirmation or denial of the Veza rumor in the coming days, as well as commentary on purchase price and integration strategy. TS2+1

Mixed sentiment: Wedbush ejects NOW from the IVES AI 30 list

In a separate December 1 development, Wedbush refreshed its IVES AI 30 “winner list” heading into 2026:

CoreWeave, Iren and Shopify were added
ServiceNow, Salesforce and SoundHound were removed ^[22]

The move doesn’t necessarily mean Wedbush is bearish on ServiceNow as a business; rather, it suggests that its top‑tier AI basket is rotating toward what it sees as more direct beneficiaries of AI infrastructure and high‑beta growth.

Still, for sentiment‑sensitive traders, dropping out of a widely cited AI list is one more data point that near‑term enthusiasm has cooled around NOW, even while the long‑term AI narrative remains intact. ^[23]

Why the stock is lagging the Nasdaq despite strong fundamentals

A recent Barchart column bluntly asked: “Is ServiceNow Stock Underperforming the Nasdaq?” The answer, numerically, is yes. ^[24]

Key performance stats from that analysis:

Trading about 33% below its 52‑week high
Three‑month return: –7.2% vs. +7.8% for the Nasdaq Composite
12‑month return: +5% vs. +21.1% for the Nasdaq
Year‑to‑date: –24.3% vs. +20.2% for the Nasdaq ^[25]

So what’s going on?

1. Valuation: “great company, fair (or expensive) stock”

Even after the pullback, ServiceNow trades on some lofty multiples:

MarketBeat pegs its P/E around 98 with a PEG ratio above 4, even after the recent sell‑off. ^[26]
Other analyses cite a P/E well over 100 on some methodologies, and platforms like Artificall flag the stock as overvalued on a short‑term basis despite strong margins. ^[27]

This feeds the increasingly common description of ServiceNow as a “great company with a debated stock”: the business is admired, but at current multiples even bulls admit it’s priced for continued 20%+ growth and flawless execution. TS2+1

2. Rotation out of “legacy software” into chip and AI‑native names

Investor letters and factor analyses summarized in recent coverage suggest a rotation away from large, established software platforms like ServiceNow toward:

High‑beta semiconductor names
“AI‑native” companies perceived as more leveraged to GPU and foundation‑model spending TS2+1

Even though ServiceNow is very much an AI beneficiary, that rotation has pressured its multiple relative to more “pure‑play” AI stories and chipmakers.

3. Technical downtrend and post‑earnings hangover

Several data points underline weak technical sponsorship:

Shares have traded below the 50‑ and 200‑day moving averages since late July ^[28]
After the Q3 beat and guidance raise, the stock still fell more than 10%, as highlighted by Finviz and Yahoo Finance recaps. ^[29]

Some analysts, including a November piece cited by Artificall, argue that ServiceNow is showing “deceleration on multiple fronts” and may be “poised to correct further,” even if the underlying business remains robust. ^[30]

Wall Street’s view: still a Buy with ~40–45% upside on average

Despite the drawdown, most fundamental analysts remain bullish on NOW.

Consensus ratings and targets

Across multiple data providers:

Barchart: 40 analysts, “Strong Buy” consensus, with a mean price target around $1,159.94, implying roughly 45% upside from recent levels. ^[31]
MarketBeat: consensus “Moderate Buy”, with an average target of $1,149.67. Notable price objectives include RBC at $1,200, JPMorgan at $1,075 and Wells Fargo at $1,275. The rating breakdown: 1 Strong Buy, 31 Buy, 5 Hold, 1 Sell. ^[32]
StockAnalysis: about 30 covering analysts, average target ~ $1,122, median ~$1,150, with a range roughly $724–$1,300. ^[33]
TradingView: aggregated analyst target of roughly $1,156, with lows in the mid‑$700s and highs in the low‑$1,300s. ^[34]
Artificall: consensus target near $1,197 (high $1,315, low $1,093), based on its digest of brokerage estimates. ^[35]

Mid‑2025 data from GuruFocus showed an average target closer to $1,097, suggesting that Street estimates have drifted upward over the course of the year even as the stock price fell. ^[36]

Taken together, these numbers cluster around $1,150–$1,200 for a 12‑month horizon — roughly 40–45% above where NOW trades today.

More cautious views

Not everyone is enthusiastic:

Zacks recently cut its rating from “Strong Buy” to “Hold”, citing valuation and softer estimate revisions. ^[37]
Macquarie initiated coverage with a Neutral stance and a target around $860, only modestly above the current price. ^[38]
Artificall’s risk analysis flags high volatility, rich valuation and seller‑dominated volume, recommending patience for “more favorable conditions.” ^[39]

So while the median analyst clearly sees significant upside, the range of outcomes is wide, and a small but vocal minority argues that much of the AI story is already priced in.

Quant and technical models: near‑term caution around $800

Short‑term, several quantitative and technical models are more skeptical than fundamental analysts:

StockInvest and similar platforms put ServiceNow’s “fair opening price” for December 1 around $810, only marginally above recent trading, and highlight a choppy, sideways‑to‑down pattern. ^[40]
TS2 Tech’s round‑up of technical research points to support zones around $805–$806, with deeper support near $785 and $765, and resistance levels near $823, $876 and $979. TS2
CoinCodex’s algorithmic model, updated November 30, calls sentiment “bearish” (Fear & Greed index at 39) and expects the stock to be roughly flat on December 1 before drifting down toward the high‑$780s over the week — even while projecting a modest net gain by the end of December. TS2

The message from these models: momentum is still weak, and while a sharp crash isn’t inevitable, the burden of proof lies with the bulls to break the downtrend.

Growth drivers: AI, identity, federal and ecosystem expansion

Despite the market’s hesitancy, ServiceNow’s operational story is still very much about growth.

Enterprise AI at scale

Q3 and subsequent announcements highlight several AI initiatives:

Now Assist and the Zurich platform release introduced multi‑agent AI workflows, “vibe” natural‑language coding and autonomous orchestration, pushing the platform toward agentic systems that can execute complex, multi‑step tasks with minimal human intervention. ^[41]
The AI Experience layer aims to give users a multimodal, context‑aware interface that blends data, people and workflows with governance built in. ^[42]
The Netty Award‑winning Voice Input for Now Assist showcases a concrete, user‑facing example where AI delivers measurable speed and accessibility gains — an increasingly important differentiator in enterprise RFPs. ^[43]

Federal and large‑deal momentum

ServiceNow continues to grow its footprint in U.S. federal agencies, where AI‑powered automation resonates as governments modernize legacy systems. Q3 saw robust federal performance despite broader budget uncertainty, as well as a rising count of $1M+ and $5M+ ACV customers, signaling deepening wallet share with large enterprises. ^[44]

Identity, security and ecosystem plays

Beyond the rumored Veza deal, ServiceNow has been:

Integrating more deeply with Microsoft, including new agentic AI orchestration powered by Microsoft Agent 365, which briefly pressured the stock on announcement but underscores close ties with cloud and productivity leaders. ^[45]
Expanding partnerships with NTT DATA, FedEx Dataworks and others to embed the platform into critical industry workflows. ^[46]

If the Veza acquisition is confirmed, it would add a powerful identity governance layer on top of these moves, tying together AI, workflows and security — a combination many enterprises are actively seeking. ^[47]

Key risks: valuation, competition, macro and AI security

Even fans of the stock acknowledge a series of non‑trivial risks:

High valuation and multiple compression
- With a P/E in the high double digits and premium EV/sales and EV/FCF multiples, ServiceNow is vulnerable if growth slows from the low‑20s to the mid‑teens. ^[48]
Intense competition
- The company faces heavy competition from Salesforce, Microsoft and a long tail of niche workflow and AI vendors. Several risk frameworks rank competition and market volatility as high‑impact factors for NOW. ^[49]
Macro and IT‑spending headwinds
- Investor letters and Q&A commentary repeatedly mention caution around public‑sector budgets, deal timing and global macro uncertainty, which could elongate sales cycles. ^[50]
Security and AI governance
- Findings like AppOmni’s “second‑order prompt injection” risk around Now Assist, referenced in recent analyses, underline that AI agents create new security and governance challenges for customers and for ServiceNow’s own reputation if misconfigured. TS2
Technical overhang
- Months of underperformance, a persistent downtrend and mixed factor scores (e.g., some models flagging seller‑dominated volume) mean it may take more than one strong quarter to win back momentum‑driven capital. ^[51]

What to watch next

For investors and traders tracking ServiceNow into December and early 2026, the main checkpoints are:

December 5 stock‑split vote and effective date
- Watch shareholder approval, split logistics and whether retail inflows or options activity pick up in the days after the split. ^[52]
Any confirmation of the Veza acquisition
- Terms, strategic rationale and integration plans will shape how the market views ServiceNow’s identity‑security ambitions and M&A discipline. ^[53]
Q4 2025 earnings and 2026 guidance (early next year)
- Key metrics: subscription growth, cRPO trajectory, AI product attach rates, large‑deal counts and margin progression. ^[54]
Technical behavior around the $800 zone
- Support in the high‑$700s and resistance in the $820–$880 band will be important for short‑term sentiment, especially if split‑driven enthusiasm meets existing selling pressure. TS2+1
Analyst revisions and factor rotation
- Upward or downward target moves from major brokers, as well as flows between software and chip/AI‑infrastructure names, could influence where NOW trades relative to its ~40–45% implied upside. ^[55]

Bottom line

As of December 1, 2025, ServiceNow sits at the intersection of strong fundamentals and fragile sentiment:

The business is delivering 20%+ growth, expanding margins, and tangible AI‑driven product wins, including today’s accessibility award and a deepening AI roadmap. ^[56]
The stock, however, is well off its highs, has underperformed the Nasdaq sharply, and trades in a clear technical downtrend amid sector‑wide rotation and valuation concerns. ^[57]
Wall Street still sees meaningful upside, with consensus 12‑month targets clustered around $1,150–$1,200, but a growing minority warns that investors may need patience — and possibly better entry points — before that upside is realized. ^[58]

For anyone following NOW into the December 5 split vote and beyond, the critical question isn’t whether ServiceNow is a high‑quality business — the data say it is — but whether late‑2025 AI enthusiasm, security‑focused M&A and a stock split can overcome months of technical underperformance and demanding valuation expectations.

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

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