Published: December 2, 2025
ServiceNow, Inc. (NYSE: NOW) is back in the spotlight as investors digest a fresh cybersecurity acquisition, accelerating AI partnerships, and an upcoming five‑for‑one stock split vote — all while the share price trades well below Wall Street’s ambitious targets.
As of Tuesday afternoon, ServiceNow shares were trading around $829, giving the company a market capitalization of roughly $169 billion. [1] That leaves the stock more than 30% below its 52‑week high near $1,198, even after a bounce from late‑October lows following strong Q3 results. [2]
Here’s a deep dive into the latest December 2, 2025 news, forecasts, and analyses shaping the outlook for ServiceNow stock.
ServiceNow Stock Today: Price, Performance and Sentiment
Intraday on December 2, 2025, NOW is trading in the high $820s, roughly flat over the past few weeks but still down more than 10% from levels immediately before its October earnings report. [3]
A recent performance rundown notes that the stock continues to lag the Nasdaq despite robust fundamentals, with shares sitting well below their 52‑week peak. [4] At the same time, the company’s fundamentals have continued to strengthen:
- Market cap: about $168–169 billion [5]
- Trailing‑twelve‑month revenue growth: ~21% [6]
- Very high profitability for a high‑growth SaaS business (gross margin around the high‑70s) [7]
However, valuation remains a flash point. Simply Wall St estimates ServiceNow trades at a price‑to‑earnings ratio of 98.5x, compared with about 32x for the broader U.S. software industry and ~54x for its peer group, even as their model pegs “fair value” around $1,154.54 per share — implying the stock is roughly 28.8% undervalued versus a recent $822 close. [8]
That mix of premium multiples plus perceived upside is at the center of today’s debate on NOW.
New December 2 Headlines: Veza Acquisition and a Fresh Valuation Call
Veza Deal Adds AI‑Native Identity Security
The biggest company‑specific news on December 2 is ServiceNow’s plan to acquire Veza, a privately held identity security firm. [9]
According to a company statement reported by Investing.com, ServiceNow:
- Announced its intent to acquire Veza to strengthen its security and risk management capabilities
- Will extend its security portfolio to better manage access to critical data, applications, systems and AI components
- Did not disclose financial terms of the deal
- Is building on a business that has grown revenue over 21% in the past 12 months
Veza, founded in 2020, serves around 150 enterprise customers across banking, hospitality and consumer goods, using a patented Access Graph to map permissions and relationships across human, machine and AI identities. [10]
The acquisition is expected to:
- Feed richer identity context into ServiceNow’s security products, including Vulnerability Response and Security Incident Response
- Help govern what AI agents are allowed to access through ServiceNow’s AI Control Tower, a key theme as enterprises worry about “who can do what” in an AI‑heavy environment [11]
In short, Veza plugs a strategic hole: identity and permissions as AI goes agentic. For investors, it reinforces the thesis that ServiceNow is building a vertically integrated AI platform spanning workflows, governance, and now identity‑centric security.
Simply Wall St: “28.8% Undervalued” but Rich Multiples
Also dated December 2, 2025, a new Simply Wall St narrative revisits ServiceNow’s valuation. [12] The analysis concludes:
- Their model’s fair value for NOW is $1,154.54 per share, versus the recent ~$822, suggesting 28.8% undervaluation
- The stock’s P/E of 98.5x sits:
- About 3x the U.S. software industry average (~32x)
- Well above a peer group average near 53.9x
- A “fair” P/E multiple for NOW, in their framework, would be 46.3x
The bullish narrative leans heavily on:
- ServiceNow’s AI focus and strategic acquisitions (like Veza) as long‑term margin and growth drivers
- Expansion into CRM, industry workflows, and public sector as diversification pillars
But the article also flags risks, including:
- Heavy reliance on U.S. federal contracts
- Execution complexity from integrating new AI‑driven acquisitions such as Veza [13]
This makes December 2 a day where valuation and strategy are both front‑and‑center for NOW stock.
Q3 2025 Earnings: AI‑Led Beat and Raised Guidance
ServiceNow’s current trajectory is anchored in its Q3 2025 earnings, reported on October 29, 2025, where the company beat guidance across the board and raised its outlook. [14]
Headline numbers from the official release:
- Subscription revenue: $3.299 billion, +21.5% YoY (20.5% in constant currency)
- Total revenue: $3.407 billion, +22% YoY (20.5% in constant currency)
- Current remaining performance obligations (cRPO): $11.35 billion, +21% YoY
- Total remaining performance obligations (RPO): $24.3 billion, +24% YoY [15]
Futurum Research notes that on a non‑GAAP basis:
- Revenue was about $3.4 billion, above Wall Street’s ~$3.36 billion consensus
- Non‑GAAP operating income reached $1.1 billion, a 33.5% operating margin versus 31% a year ago
- Non‑GAAP diluted EPS was $4.82, up nearly 30% year‑on‑year [16]
Management also raised full‑year 2025 guidance, now calling for:
- Subscription revenue: $12.835–$12.845 billion, representing about 20.5% YoY growth
- Non‑GAAP operating margin of 31%
- Free cash flow margin of 34% [17]
The core message from Q3: AI is working — commercially and operationally.
AI Platform Adoption: Now Assist and AI Control Tower
Futurum’s post‑earnings analysis paints a detailed picture of ServiceNow’s AI momentum: [18]
- AI products are on track to exceed $0.5 billion in annual contract value (ACV) in FY 2025
- Management is targeting $1 billion in AI ACV in FY 2026
- Now Assist logged 12 deals over $1 million in net new ACV, including one above $10 million
- AI Control Tower deal volume quadrupled QoQ
- AI Agent Assist consumption has surged 55x since late May, showing real usage rather than trial‑only interest
The Zurich platform release and new AI Experience interface aim to unify data, workflows and agents under one AI umbrella, supporting multi‑agent orchestration, governance, and secure integration — areas where the Veza and Microsoft partnerships directly plug in. [19]
New Microsoft AI Integrations: Governance at Enterprise Scale
On November 18, 2025, ServiceNow announced a set of new integrations with Microsoft, including Microsoft Agent 365, Microsoft Foundry and Copilot Studio. [20]
Key points from that announcement:
- ServiceNow AI Control Tower will integrate with Microsoft’s AI stack to provide centralized oversight and governance for AI agents deployed across Microsoft platforms
- Enterprises will be able to discover and manage Microsoft agents inside ServiceNow’s AI Platform, applying consistent policies and controls for security and compliance
- Build Agent for ServiceNow now works with GitHub’s Model Context Protocol (MCP), letting agentic workflows tap GitHub issues, pull requests and discussions while maintaining enterprise‑grade governance
- An integration between ServiceNow AI Experience, Now Assist and Microsoft Agent 365 will bring ServiceNow workflows directly into Outlook, Word and Teams, effectively turning AI into “teammates” embedded in everyday productivity apps [21]
These integrations, expected to be generally available by year‑end, highlight ServiceNow’s ambition to become the control plane for enterprise AI, not just a workflow tool.
Five‑for‑One Stock Split: Heading to a December 5 Vote
Alongside its Q3 earnings, ServiceNow’s board authorized a five‑for‑one split of the company’s common stock, subject to shareholder approval. [22]
According to the company:
- A Special Meeting of Shareholders to approve the stock split is scheduled for December 5, 2025
- The split is positioned as a way to broaden ownership and improve trading accessibility, particularly for employees and retail investors
A split does not change the underlying value of the business, but it can:
- Lower the nominal share price, making options and small lots more accessible
- Potentially increase liquidity
- Occasionally act as a psychological catalyst if investors interpret it as a sign of management confidence
With shares already well below the 2025 highs, the vote and any follow‑up announcements on timing and mechanics will be key near‑term watchpoints for NOW stock.
Analyst Forecasts: Strong Growth Story with a Wide Target Range
Consensus Ratings and Targets
Analyst coverage of ServiceNow remains broadly positive, though there are signs of growing divergence.
- MarketBeat, tracking 38 Wall Street analysts, shows a “Moderate Buy” consensus rating:
- 32 Buy/Strong Buy
- 5 Hold
- 1 Sell [23]
- The average 12‑month price target on MarketBeat stands at $1,149.67, implying about 38.6% upside from a reference price of $829.31. High and low targets sit at $1,315 and $724, respectively. [24]
StockAnalysis, covering 30 analysts, is even more bullish on the tone:
- Consensus rating: “Strong Buy”
- Average price target: $1,122, implying a 35.3% gain from current levels
- Target range: $724 to $1,300 [25]
Both datasets suggest the Street still expects double‑digit upside, though the wide range reminds investors that views are far from unanimous.
Growth Forecasts: Revenue and EPS
Analysts are currently modeling:
- FY 2025 revenue: about $13.35 billion, up 21.5% from $10.98 billion in 2024
- FY 2026 revenue: around $15.81 billion, up 18.5% from 2025
- FY 2025 EPS: about $17.39, a huge jump — more than 150% growth versus 2024
- FY 2026 EPS: about $20.48, up 17.8% from 2025 [26]
These forecasts reflect expectations that ServiceNow can deliver 20%‑plus top‑line growth with expanding margins, powered by:
- AI‑led upsell (Now Assist, AI Control Tower, Zurich release)
- Cross‑selling into CRM and front‑office workflows
- Ongoing expansion in public sector and large enterprises [27]
Recent Rating Moves: Neutral Initiation and List Changes
Recent rating and list changes add color to the story:
- Macquarie initiated coverage of NOW with a Neutral rating and $860 price target on November 25, implying only modest upside from current levels. [28]
- Other firms, including TD Cowen, UBS, Royal Bank of Canada, Citi and JP Morgan, raised price targets after Q3, with several clustered in the $1,075–$1,250 range while maintaining Buy or Outperform ratings. [29]
- Zacks Research recently downgraded ServiceNow from Strong Buy to Hold, signaling more caution on near‑term upside. [30]
- In a notable sentiment shift, a Wedbush note summarized in financial media removed ServiceNow (and Salesforce) from analyst Dan Ives’ high‑profile “AI 30” list heading into 2026, while adding newer AI infrastructure names such as CoreWeave and Iren — even as Ives remains constructive on ServiceNow’s AI positioning more broadly. [31]
These moves highlight a subtle but important trend: analysts still like the story, but some are trimming expectations or allocating attention to newer AI plays.
Bullish Drivers for ServiceNow Stock
From a thematic standpoint, several forces support the bull case for NOW:
- Durable, High‑Quality Growth
- Revenue growing north of 20%, with improving operating and free‑cash‑flow margins and strong visibility via cRPO and RPO. [32]
- AI as a Genuine Revenue Engine, Not Just Marketing
- Hundreds of millions in AI ACV already, with a clear roadmap toward $1 billion next year, and evidence of large AI‑driven deals (including multiple seven‑ and eight‑figure Now Assist contracts). [33]
- Platform Expansion Into Security and Identity
- Veza adds AI‑native identity security, a critical control plane as enterprises deploy agents across systems, while ServiceNow’s existing security portfolio already ties into infrastructure and workflows. [34]
- Deep Strategic Partnerships
- The latest wave of Microsoft AI integrations positions ServiceNow as a governance and orchestration layer for agents spanning ServiceNow and Microsoft 365, plus GitHub. [35]
- Sticky, Diversified Customer Base
- High renewal rates and a growing roster of customers with >$5 million in ACV, indicating deep platform adoption across large enterprises and the public sector. [36]
Together, these support the narrative of ServiceNow as a core AI and workflow platform for the next decade, not a niche SaaS vendor.
Key Risks: Valuation, Execution and Federal Exposure
On the other side of the ledger, several risks stand out — many highlighted in today’s analyses.
- Rich Valuation and Multiple Compression Risk
- Even with some pullback, ServiceNow trades at a near‑triple premium to industry P/E and well above peers, and any deceleration in growth or AI momentum could trigger further multiple compression. [37]
- Integration and Execution Complexity
- The company is simultaneously rolling out multi‑agent AI, deep Microsoft integrations, and new security capabilities via Veza and other initiatives. Integrating technologies, go‑to‑market motions and cultures at this pace always carries execution risk. [38]
- Macro and Public Sector Dependence
- Management has already flagged that U.S. Federal budgets and government‑shutdown timing could affect near‑term deal timing, even if long‑term demand stays strong. [39]
- Competitive Pressure in AI and Workflows
- ServiceNow faces competition not only from traditional ITSM and workflow players, but also from hyperscalers and CRM giants embedding AI agents directly into their platforms. The fact that some AI‑focused stock lists are rotating toward newer names underscores that investors have many ways to express an “AI platform” thesis. [40]
- Identity and Security Stakes
- The Veza deal aims to strengthen ServiceNow’s posture in identity security, but it also increases the importance of getting security right in a domain where missteps can be costly both financially and reputationally. [41]
What to Watch Next for NOW Stock
Investors following ServiceNow into year‑end may want to keep an eye on several upcoming catalysts and data points:
- December 5, 2025 – Special Meeting on the Stock Split
- Approval details, effective dates and any accompanying capital‑allocation commentary could shape short‑term trading.
- Regulatory Progress and Closing Timeline for the Veza Acquisition
- Look for updates on integration plans, go‑to‑market strategy, and how Veza’s Access Graph will be embedded into AI Control Tower and the broader platform. [42]
- Rollout of Microsoft AI Integrations
- Adoption metrics and customer case studies will help gauge whether ServiceNow can truly become the cross‑platform AI governance layer it’s pitching. [43]
- Q4 2025 Earnings and 2026 Outlook
- Will subscription revenue, cRPO and AI ACV meet or beat guidance? Will management further refine its AI revenue targets? [44]
- Any Shifts in Analyst Sentiment or AI Stock Lists
- Additional downgrades, list removals, or new initiations could influence flows, especially if macro conditions remain choppy. [45]
Bottom Line
As of December 2, 2025, ServiceNow stock sits at a crossroads:
- The company is delivering strong growth, expanding margins, and accelerating AI adoption, while extending its reach into identity security and cross‑platform governance through the Veza acquisition and Microsoft partnerships. [46]
- Analysts, on average, still see 30–40% upside over the next 12 months, backed by forecasts of 20%‑plus revenue growth and sharply higher earnings. [47]
- At the same time, valuation remains lofty, sentiment is more mixed than a year ago, and new AI darlings are competing for investor attention. [48]
For long‑term investors, the key question isn’t just whether ServiceNow can grow, but whether it can continue to grow fast enough — and profitably enough — to justify its premium in an increasingly crowded AI platform race.
This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any security, or a substitute for independent financial research. Always do your own due diligence or consult a licensed financial advisor before making investment decisions.
References
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