ServiceNow (NYSE: NOW) stock is trading near $860 on Dec. 12, 2025 as investors focus on a 5-for-1 stock split next week, AI product momentum, recent M&A moves, and Wall Street price targets. [1]
SANTA CLARA, Calif. — December 12, 2025 — ServiceNow, Inc. (NYSE: NOW) stock is hovering around the $860 level on Friday as markets digest a busy stretch of corporate updates: a shareholder-approved 5-for-1 stock split set to take effect next week, new AI-oriented product rollouts, and continued investor debate over valuation versus growth. [2]
While a stock split doesn’t change ServiceNow’s underlying business, it often resets the conversation—especially for a premium-valued enterprise software leader whose shares have stayed well below their early-2025 highs. ServiceNow’s 52-week high is $1,198.09 and the 52-week low is $678.66, underscoring the stock’s wide trading range over the past year. [3]
Below is a detailed roundup of the most current ServiceNow stock news, forecasts, and market analyses investors are using on Dec. 12, 2025—and what to watch next.
ServiceNow stock today: price level, context, and why the split matters
ServiceNow shares are trading near $859.89 on Dec. 12, 2025, reflecting a modest pullback on the day at the time of the latest market update.
A key short-term catalyst is the company’s 5-for-1 stock split—a corporate action that increases the number of shares outstanding while proportionally reducing the per-share price (market capitalization is unchanged). ServiceNow shareholders approved the split recently, and the company has outlined the timing:
- Record date: December 16, 2025
- Distribution: after market close on or about December 17, 2025
- Split-adjusted trading expected to begin: December 18, 2025 [4]
If NOW is around $860 before the split, it would trade around $172 afterward (all else equal). The split can broaden accessibility and sometimes increases retail participation—but it does not alter revenue, margins, free cash flow, or competitive position.
Options and derivatives: OCC confirms key dates and contract adjustments
For investors who use options, there’s an important technical detail: the Options Clearing Corporation (OCC) issued an information memo confirming that ServiceNow’s split triggers contract adjustments and specifying the ex-distribution date.
According to the OCC memo (dated Dec. 10, 2025), the ex-distribution date is December 18, 2025, with a payable date of December 17 and a record date of December 16. The memo also details how strike prices and deliverables are adjusted (for example, strike divisor and contract multiplier changes reflecting the 5-for-1 split). [5]
This matters because option chains can look “strange” around corporate actions. Traders generally want to know exactly when the adjusted contracts take effect and how strikes will be recalculated.
What’s driving the ServiceNow story this week: AI platform expansion and public-sector investment
ServiceNow is leaning hard into AI positioning—branding itself as an “AI control tower” and pushing new capabilities that connect workflows across enterprise systems. Recent items getting investor attention include:
1) Canada public sector investment: CA$110 million commitment
On December 8, 2025, ServiceNow announced a CA$110 million investment aimed at helping Canada’s public sector adopt AI at scale. The company said the commitment will establish a Canada Centre of Excellence, create ~100 Canada-based jobs, and deliver Canadian-hosted, AI-ready infrastructure with enhanced data/security/operational controls. [6]
While not immediately material to revenue on its own, the announcement reinforces a recurring theme for NOW investors: ServiceNow’s push into regulated and government-adjacent environments where data residency, security, and governance can drive platform standardization.
2) “Now Assist Center” app release (Dec. 11)
ServiceNow’s Store shows a Dec. 11, 2025 release for “Now Assist Center,” positioned as centralized access to AI applications and administrative guidance for “AI foundations.” The listing notes licensing requirements (including a Now Assist Pro+ license) and describes navigation/documentation features intended to reduce friction in AI adoption. [7]
For stock watchers, these incremental releases are less about one app and more about the broader pattern: ServiceNow is trying to make AI usage more “operational”—managed, discoverable, and governed inside the platform.
3) AI Voice Agents: licensing, languages, and model ecosystem
A ServiceNow community post describing “AI Voice Agents” includes details that matter for adoption economics—such as licensing (generally requiring a Now Assist tier), usage consumption rates (noted as 50 assists per call in the post), and model-provider flexibility (supporting Azure OpenAI, Gemini, and Anthropic Claude, per the article). It also notes that the December 2025 store release adds German and Spanish language support. [8]
Investors often translate details like these into two questions:
- Will the AI feature set expand wallet share within existing accounts?
- Will consumption and licensing design accelerate or slow adoption?
M&A watch: Veza acquisition adds identity security narrative to the AI push
Another major December headline is ServiceNow’s move into identity security.
ServiceNow announced it has signed a definitive agreement to acquire Veza, describing Veza as an identity security company and highlighting Veza’s “Access Graph” technology. ServiceNow said it plans to integrate Access Graph into its AI Control Tower to strengthen identity security and governance across human and non-human identities in an AI-driven enterprise. Financial terms were not disclosed in the press release, and the transaction is subject to customary closing conditions. [9]
For the stock, the strategic read-through is straightforward: as enterprises deploy more AI agents and automation, identity governance becomes more complex—and ServiceNow is trying to position itself closer to that control layer.
Fundamentals check: what ServiceNow last guided to, and what it implies for growth
ServiceNow’s most recent quarterly report (Q3 2025) remains the foundation for near-term forecasting.
In its third-quarter 2025 release, ServiceNow reported:
- Subscription revenues:$3.299 billion, +21.5% year over year (20.5% constant currency)
- Total revenues:$3.407 billion, +22% year over year (20.5% constant currency) [10]
Q4 2025 outlook (as last issued)
ServiceNow’s guidance table in that release indicates:
- Q4 subscription revenues:$3.420B–$3.430B (about 19.5% YoY; 17.5%–18% constant currency)
- cRPO growth:23% YoY (19% constant currency)
- Non-GAAP operating margin (income from operations):30% [11]
Full-year 2025 outlook (as last issued)
The same release includes full-year guidance:
- Subscription revenues:$12.835B–$12.845B (20.5% YoY; 20% constant currency)
- Non-GAAP subscription gross profit margin:83.5%
- Non-GAAP operating margin:31%
- Non-GAAP free cash flow margin:34% [12]
Those figures help explain why NOW commands a premium valuation: investors are pricing a business that’s still growing subscription revenue around ~20% while sustaining high margins.
Wall Street forecasts: where analysts see NOW over the next 12 months
Across major tracking services, the consensus view remains constructive—though price targets vary.
- TipRanks: average price target $1,154.04 (high $1,315, low $734) with a “Strong Buy” consensus based on recent analyst ratings. [13]
- StockAnalysis: average target $1,122 (low $724, high $1,300) with a “Strong Buy” consensus. [14]
- MarketBeat: average target $1,149.67 (high $1,315, low $724) and a consensus described as “Moderate Buy” in its breakdown. [15]
Important split-related nuance for targets
These targets are quoted on a pre-split basis. After a 5-for-1 split, targets would typically be divided by 5 for “apples-to-apples” comparison. For example, a ~$1,150 target becomes roughly ~$230 on a split-adjusted basis.
Investors should expect brokerage platforms and research notes to update targets and per-share estimates as the effective date approaches.
Valuation: premium multiple, but investors are watching the “compression vs. growth” balance
The debate around ServiceNow stock in late 2025 can be summarized in one line: is NOW’s growth durable enough to justify a premium multiple—especially as AI reshapes software pricing models?
Current widely cited valuation ratios (as of Dec. 12) include:
- Trailing P/E: ~104
- Forward P/E: ~44
- Price-to-sales: ~14 [16]
ServiceNow’s market capitalization is roughly $178B as of Dec. 12, 2025, keeping it in the mega-cap orbit of enterprise software leaders even after a volatile year. [17]
This is why the next few quarters matter: if growth slows materially, the multiple can compress quickly; if growth holds near ~20% with strong margins, investors may tolerate (or even re-expand) premium pricing.
Insider-trading filings: a small but notable data point
Recent SEC filings also show typical executive trading activity. For example, a Form 4 filed for ServiceNow President and CFO Gina Mastantuono reflects a sale of 415 shares at $850 (transaction dated 12/05/2025) and notes the trade was made under a Rule 10b5-1 trading plan adopted earlier in 2025. [18]
Insider sales under 10b5-1 plans are common across large-cap tech and are not inherently bullish or bearish—but they’re part of the “complete picture” investors often track during catalyst-heavy periods like a stock split.
Key risks investors are weighing right now
Even with bullish analyst targets, there are clear risk buckets around ServiceNow stock into year-end and early 2026:
- Valuation sensitivity: A premium multiple can amplify drawdowns during growth scares. [19]
- AI commercialization and pricing: Enterprises want AI outcomes, but the pricing model (seat-based vs. consumption vs. value-based) is evolving across the software sector.
- Execution and integration: Deals like Veza can strengthen the platform story, but integrations still carry execution risk. [20]
- Public sector dynamics: ServiceNow is leaning into government/regulatory markets (e.g., Canada), which can be sticky but also procurement- and policy-sensitive. [21]
- Split-driven volatility: Increased accessibility can sometimes bring higher short-term trading activity around the effective date. [22]
What to watch next for ServiceNow (NOW) stock after Dec. 12
Near-term calendar items:
- Dec. 16: shareholder record date for split [23]
- Dec. 17: distribution expected after market close [24]
- Dec. 18: split-adjusted trading expected; OCC option adjustments effective [25]
Narrative items likely to move the stock:
- Any updates on closing timelines and integration plans for Veza (and what it means for the AI governance/security roadmap). [26]
- Forward commentary on AI adoption and packaging—especially as ServiceNow rolls out more “operational AI” tooling like Now Assist Center and voice agents. [27]
- Evidence that subscription growth and profitability track the company’s latest guidance into Q4 and beyond. [28]
References
1. newsroom.servicenow.com, 2. newsroom.servicenow.com, 3. www.macrotrends.net, 4. newsroom.servicenow.com, 5. infomemo.theocc.com, 6. newsroom.servicenow.com, 7. store.servicenow.com, 8. www.servicenow.com, 9. newsroom.servicenow.com, 10. newsroom.servicenow.com, 11. newsroom.servicenow.com, 12. newsroom.servicenow.com, 13. www.tipranks.com, 14. stockanalysis.com, 15. www.marketbeat.com, 16. stockanalysis.com, 17. stockanalysis.com, 18. www.sec.gov, 19. stockanalysis.com, 20. newsroom.servicenow.com, 21. newsroom.servicenow.com, 22. newsroom.servicenow.com, 23. newsroom.servicenow.com, 24. newsroom.servicenow.com, 25. newsroom.servicenow.com, 26. newsroom.servicenow.com, 27. store.servicenow.com, 28. newsroom.servicenow.com
