December 8, 2025 — ServiceNow, Inc. (NYSE: NOW) is back in rally mode. The workflow and AI‑automation specialist is trading around $853 per share, with a market capitalization of roughly $177 billion, after extending its winning streak to seven consecutive sessions. [1]
Investors today are digesting three major catalysts that are reshaping the ServiceNow stock story:
- A CA$110 million multi‑year investment to accelerate AI adoption across Canada’s public sector
- An approved 5‑for‑1 stock split scheduled for mid‑December
- A definitive agreement to acquire identity‑security firm Veza in a deal widely reported around $1 billion
All this arrives just weeks after a strong Q3 2025 “beat‑and‑raise” quarter, a brief 10%+ post‑earnings sell‑off, and the company’s removal from Wedbush’s high‑profile IVES AI 30 list — a reminder that sentiment around richly valued AI leaders can swing quickly. [2]
Below is a deep dive into today’s news, recent performance, Street forecasts, and key risks around ServiceNow stock as of December 8, 2025.
1. ServiceNow Stock Today: Price, Valuation and Recent Moves
As of this afternoon, ServiceNow shares trade near $853, slightly down on the day but up over the last week, with intraday levels earlier around $856–$872. [3]
Key valuation snapshots:
- Market cap: ~$177 billion [4]
- Trailing P/E: ~103× earnings
- Forward P/E: roughly 44–45×
- Price‑to‑sales (TTM): about 14× [5]
That puts ServiceNow firmly in the “premium growth” bucket. Its P/E multiple is roughly 3× the U.S. software industry average (low 30s), and well above many large‑cap software peers, though it has compressed versus its own lofty history. [6]
Notably, the stock fell more than 10% in the weeks following its Q3 earnings release despite strong fundamentals, reflecting valuation jitters, rotation within AI leaders, and fresh competition for capital in the broader tech sector. [7]
2. Today’s Headline: CA$110 Million AI Push in Canada’s Public Sector
The biggest fresh news on December 8 is ServiceNow’s announcement of a CA$110 million multi‑year investment to accelerate AI adoption across Canada’s public sector. [8]
According to the company’s press release and related coverage, the plan includes:
- Establishing a Canada Centre of Excellence focused on AI and digital workflows
- Creating around 100 new Canada‑based jobs, including AI and cloud specialists
- Delivering Canadian‑hosted, AI‑ready infrastructure with enhanced data residency, security and compliance controls
Strategically, this matters because:
- It deepens ServiceNow’s footprint in government, a sticky, long‑duration customer base.
- It addresses a key barrier for public‑sector customers: local, compliant AI infrastructure.
- It positions ServiceNow as an “AI control tower” for complex organizations — the language the company increasingly uses to frame its platform. [9]
For investors, the Canada move signals confidence in long‑term AI demand and willingness to invest upfront in infrastructure and regional capabilities to secure multi‑year subscription revenue.
3. Veza Acquisition: Doubling Down on Identity Security for AI
Another major development this month is ServiceNow’s agreement to acquire Veza, a fast‑growing identity‑security company whose platform centers on an AI‑native Access Graph that maps permissions across users, machines and AI agents. [10]
Key points from the deal:
- Veza brings an identity‑first security platform used by ~150 large enterprises across industries. [11]
- Its Access Graph will be integrated into ServiceNow’s AI Control Tower, providing a unified view of who (or what) can access which data and systems — including AI agents and non‑human identities. [12]
- Reports peg the transaction value around $1 billion, though official financial terms have not been disclosed. [13]
- The deal is described as ServiceNow’s sixth acquisition this year, reinforcing a strategy of bolt‑on deals to expand AI and security capabilities. [14]
Why it matters for the stock:
- AI adoption is pushing enterprises to manage human, machine and agent identities in a unified way. Veza effectively plugs an important gap in ServiceNow’s Security and Risk portfolio. [15]
- Investors increasingly view security + AI as a powerful combination: secure AI workflows can command premium pricing and long‑term contracts.
- Identity breaches are often at the center of major cyber incidents, so stronger governance can be a key differentiator versus rivals in IT service management and workflow automation.
The Veza acquisition also helps answer a critique that ServiceNow’s AI story has been “feature‑heavy but governance‑light” by tying its AI Control Tower to a more robust, identity‑aware security layer.
4. 5‑for‑1 Stock Split: Making NOW More Accessible
On December 5, shareholders overwhelmingly approved a 5‑for‑1 split of ServiceNow’s common stock. [16]
According to the company:
- Record date: December 16, 2025
- Distribution: After market close on or about December 17
- Split‑adjusted trading: Expected to begin December 18, 2025
Holders of record will receive four additional shares for each share held, so an investor with 10 shares of NOW pre‑split should own 50 shares post‑split, while the overall economic value remains unchanged. [17]
Why the split can matter:
- A lower per‑share price post‑split may make ServiceNow more accessible to smaller investors and options traders.
- Higher share count and lower nominal price can boost liquidity and index trading activity.
- Psychologically, splits sometimes act as a bullish sentiment signal, though academic studies are mixed and fundamentals ultimately dominate.
Analysts and commentators have already begun to rebase price targets to reflect the upcoming split, but the underlying valuation framework — revenue growth, margins, and cash flows — is unchanged. [18]
5. Q3 2025 Earnings: Strong Growth and Guidance Raise
ServiceNow’s Q3 2025 results, released on October 29, underpin much of today’s bullish narrative. [19]
Highlights:
- Subscription revenue: ~$3.30 billion, up about 21–22% year‑over‑year (roughly 20.5% in constant currency).
- Total revenue: ~$3.41 billion, above Wall Street expectations of around $3.36 billion.
- cRPO (current remaining performance obligations): ~$11.35 billion, up about 21% year‑over‑year.
- Total RPO: ~$24.3 billion, up roughly 24%.
- Non‑GAAP operating margin: about 33.5%, up from ~31% a year earlier.
Management also raised full‑year 2025 subscription revenue guidance by roughly $55 million at the midpoint, targeting about $12.84 billion, or ~20.5% growth. [20]
Yet, despite this beat‑and‑raise quarter, the stock initially sold off over 10% in the following weeks, as some investors questioned whether growth, while strong, was enough to justify a triple‑digit P/E and whether AI tailwinds were already fully priced in. [21]
6. ServiceNow’s Evolving AI Strategy: Platform, Partners and Experience
ServiceNow has spent much of 2025 repositioning itself not just as a workflow platform but as an “AI control tower for business reinvention.” [22]
Key AI milestones this year include:
- ServiceNow AI Platform (May 2025): A reimagined platform designed to run “any AI, any agent, any model” across the enterprise, unifying data, orchestration and intelligence. It features deeper integrations with partners like Microsoft, NVIDIA, Google and Oracle. [23]
- Secure, scalable AI platform update (September 2025): New developer tools to support multi‑agent AI, “vibe coding” (low‑friction development) and stronger governance around AI workflows. [24]
- AI Experience (AIx) (fall 2025): A multimodal, conversational UI layer described as a “unified front door to enterprise AI”, built on ServiceNow’s AI Platform and Now Assist. [25]
- New Microsoft AI integrations: Recent announcements highlight tighter coupling between ServiceNow’s workflows and Microsoft’s AI and productivity stack, strengthening its role as an orchestration layer rather than a standalone island. [26]
The Veza deal plugs into this by making identity and access controls AI‑aware, while today’s Canadian public‑sector investment showcases ServiceNow’s willingness to build regional AI infrastructure tailored to local regulations.
7. AI Security Concerns: Second‑Order Prompt Injection Risk
The flip side of ServiceNow’s aggressive AI push is heightened security scrutiny.
In mid‑November, security researchers at AppOmni disclosed that ServiceNow’s Now Assist AI agents can be abused via “second‑order prompt injection”, where one benign‑seeming agent is tricked into recruiting a more powerful agent to perform unauthorized actions — such as copying sensitive data or modifying records — using default configuration settings. [27]
Key points from the research:
- The issue stems from default configurations enabling agent discovery and team‑based collaboration, not a traditional software bug.
- Attackers can potentially abuse these defaults to exfiltrate data or escalate privileges if enterprises do not harden their settings.
- ServiceNow reportedly acknowledged the behavior as intended, but updated its documentation to better explain the risks and recommended mitigation steps. [28]
Mitigation recommendations include:
- Using supervised execution for privileged AI agents
- Disabling certain autonomous override properties
- Segregating agent duties and teams
- Monitoring AI agents for suspicious behavior
For investors, the takeaway is that AI governance and configuration hygiene are becoming as important as core functionality — and that any widely used AI platform will face increased security‑research attention.
8. Analyst Ratings and ServiceNow Stock Forecasts
Despite short‑term volatility and security concerns, Wall Street remains broadly positive on ServiceNow stock.
8.1 Sell‑side consensus
Across several aggregators:
- StockAnalysis: 30 analysts rate ServiceNow a “Strong Buy” with an average 12‑month price target around $1,122, implying roughly 31% upside from current levels. [29]
- MarketBeat: Collating 38 analysts, the average target sits near $1,150, with a high of about $1,315 and a low near $724, implying around 35% upside from a reference price in the mid‑$850s. [30]
- TipRanks: Recent data shows an average target of about $1,154 with a similar high‑low range, equating to roughly 35–39% implied upside. [31]
Even after accounting for post‑split adjustments, these figures indicate that many analysts still see ServiceNow as a high‑quality compounder with meaningful upside, assuming it can sustain ~20% revenue growth and margin expansion.
8.2 Notable shifts in sentiment
- Wedbush’s Dan Ives recently removed ServiceNow from his IVES AI 30 list heading into 2026, citing a desire to rotate into other perceived AI leaders like CoreWeave, IREN and Shopify. [32]
- Separate coverage from firms like Macquarie has initiated or reiterated more neutral “Hold” stances, flagging the stock’s high premium vs. peers and potential competitive pressure despite strong fundamentals. [33]
In short: most analysts are bullish, but a louder minority is warning that at >100× trailing earnings, ServiceNow must keep executing flawlessly to justify its valuation.
8.3 Quant and algorithmic forecasts
Beyond human analysts, several platforms publish algorithm‑based predictions:
- CoinCodex models NOW trading roughly between $793 and $865 in 2025, quite close to current levels, implying a broadly range‑bound year under its assumptions. [34]
- Other AI‑driven forecast services similarly highlight upside potential into the early 2030s (with some wide bands extending above $1,500 by 2030), but these rely heavily on statistical and technical factors rather than deep fundamental analysis. [35]
Investors should treat these algorithmic projections as rough scenario tools, not guarantees.
9. Key Risks: Valuation, Competition and AI Governance
From today’s vantage point, three broad risk buckets stand out for ServiceNow stock:
- Valuation Risk
- A trailing P/E around 100× and forward P/E in the mid‑40s leaves little room for error. [36]
- Any slowdown in subscription growth, margin compression or macro‑driven IT spending cuts could trigger multiple compression, even if fundamentals remain healthy.
- Competitive and Platform Risk
- ServiceNow competes with giants like Microsoft and Salesforce as well as focused security and observability vendors.
- If rivals better monetize their own AI platforms or integrate more seamlessly with existing enterprise stacks, ServiceNow’s pricing power or win rates could be pressured. [37]
- AI Security and Regulatory Risk
- Findings around second‑order prompt injection highlight how quickly AI‑specific security risks can become headline news. [38]
- As governments tighten rules on AI safety, data residency and identity governance, ServiceNow will need to prove its platform is not just powerful but also auditable and compliant — both technically and contractually.
That said, ServiceNow’s strong balance sheet, sticky customer base and deep integration into mission‑critical workflows give it meaningful capacity to address these risks. [39]
10. What to Watch Next for NOW Stock
Looking ahead from December 8, 2025, investors tracking ServiceNow stock may want to watch:
- Q4 2025 / FY 2025 earnings (expected late January 2026)
- Can ServiceNow sustain ~20%+ subscription growth and expand margins further?
- How does management frame 2026 AI monetization and macro headwinds? [40]
- Closure and integration of the Veza acquisition
- Timing of deal close and early cross‑sell metrics in Security & Risk.
- Concrete product announcements tying Veza’s Access Graph into AI Control Tower.
- Execution on the Canada AI investment
- Progress on the Canada Centre of Excellence, hiring, and first major public‑sector AI deployments. [41]
- Response to AI security findings
- Additional hardening of Now Assist configurations and any new governance features. [42]
- Post‑split trading dynamics
- Liquidity, retail participation and options activity once NOW begins trading on a split‑adjusted basis on December 18. [43]
Bottom Line
On December 8, 2025, ServiceNow stock sits at the intersection of strong execution and elevated expectations:
- Growth remains robust, with Q3 2025 delivering a classic beat‑and‑raise quarter and a deepening pipeline of AI‑driven deals. [44]
- The company is aggressively investing in AI infrastructure and identity security, as shown by its CA$110M Canada initiative and the Veza acquisition. [45]
- A 5‑for‑1 stock split and broad analyst support add fuel to the bull case, though not everyone is convinced the current valuation leaves enough margin of safety. [46]
For prospective and existing shareholders, the core question is whether ServiceNow can continue compounding revenue at ~20%+ with expanding margins while also proving that its AI‑heavy platform is secure, governed and indispensable to large enterprises.
As always, this article is for informational purposes only and does not constitute investment advice. Investors should consider their own objectives and risk tolerance — and consult a qualified financial advisor — before making any decision regarding ServiceNow stock.
References
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