ServiceNow, Inc. (NYSE: NOW) is in the spotlight on December 18, 2025, with the company’s 5-for-1 stock split now in effect, a fresh wave of analyst forecasts and price-target resets, and lingering investor debate over a potential $7 billion cybersecurity acquisition of Armis—a deal that has helped fuel a sharp selloff this week.
As of the latest available quote on Dec. 18, ServiceNow shares are trading around $152 (split-adjusted), with heavy volume and a wide intraday range—an important reminder that after a split, the “new” share price can look dramatically different even when the business value does not change.
Below is what’s moving ServiceNow stock today, what Wall Street is forecasting next, and what investors are watching into 2026.
What’s happening with ServiceNow stock on December 18, 2025
Three themes define the NOW stock story today:
1) The stock split is live (and it changes the quote, not the company)
ServiceNow’s 5-for-1 stock split begins trading on a split-adjusted basis today (Dec. 18, 2025), after shareholders approved the action earlier this month. Under the company’s terms, shareholders of record received four additional shares for every share held. [1]
2) The stock is probing new lows as investors reassess valuation and deal risk
One widely circulated datapoint today: Investing.com reported the stock hit a 52-week low of $156.48 (split-adjusted) and noted the stock’s steep drawdown over the last year. [2]
3) M&A speculation remains the overhang
This week’s volatility was intensified by reports that ServiceNow has been in advanced talks to acquire Armis in a transaction that could be valued at up to $7 billion—a potential record deal for the company. Reuters, citing a Bloomberg report, said the deal could be announced in coming days but also cautioned talks could fall apart. [3]
The ServiceNow 5-for-1 stock split: key facts and what it means for investors
Stock splits are often misunderstood in the heat of market volatility, so it helps to separate mechanics from meaning.
The mechanics (what ServiceNow officially disclosed)
ServiceNow said shareholders approved a 5-for-1 split, with shares of record receiving additional shares after market close and trading expected to begin split-adjusted on Dec. 18, 2025. [4]
In its SEC filing, ServiceNow also described timing details around the corporate charter changes and when the split would be reflected for holders. [5]
The meaning (what changes and what doesn’t)
A split typically:
- Increases the number of shares outstanding (each old share becomes five shares)
- Reduces the per-share price by roughly the same factor
- Does not change the company’s underlying market value on its own
So if your brokerage app makes the stock look “down 80%,” that’s usually a split-adjustment effect—not an overnight collapse in business fundamentals.
Why companies do this
ServiceNow isn’t alone in using a split to make its shares more accessible and potentially more liquid. In practice, splits can broaden the potential buyer base, especially among retail investors, even though the split alone doesn’t change earnings power.
Armis acquisition talks: why the market reaction has been so intense
The most consequential fundamental debate around ServiceNow right now isn’t the split—it’s deal risk.
What’s been reported
Reuters reported that ServiceNow is in advanced talks to buy Armis—a cybersecurity company that had been considering an IPO—at a valuation of as much as $7 billion, according to a Bloomberg report cited by Reuters. Reuters also noted that the talks could still break down or draw another bidder. [6]
Reuters added detail on Armis’s momentum: it raised $435 million in a funding round in November, valuing the company at $6.1 billion, and it focuses on securing connected devices in real time. [7]
Why investors sold first and asked questions later
Large acquisitions often trigger a knee-jerk selloff in the acquirer—especially when:
- The price tag is large relative to expected near-term contribution
- Investors fear integration complexity
- The acquirer already trades at a premium valuation
- The deal can be interpreted as “buying growth” rather than generating it organically
Investopedia captured this sentiment around the initial Armis headlines, describing the drop in ServiceNow shares following the report and emphasizing the potential size of the transaction. [8]
The strategic rationale (why the deal is being taken seriously)
If ServiceNow is serious about becoming an “AI operating system” for enterprise workflows, cybersecurity coverage for connected devices and operational technology could be strategically complementary—especially as AI agents touch more systems and data.
But the strategic logic doesn’t erase the execution questions investors are wrestling with this week: How much will it cost? How quickly can it integrate? Will it dilute margins?
Moveworks acquisition is now complete: how it fits into ServiceNow’s AI push
While Armis remains “talks” and “reports,” ServiceNow has confirmed another major step in its AI roadmap.
On Dec. 15, 2025, ServiceNow announced it had completed its acquisition of Moveworks, describing the combination as a way to pair ServiceNow’s “agentic AI and intelligent workflows” with Moveworks’ front-end AI assistant and enterprise search. [9]
Notably, ServiceNow’s release also highlighted internal AI automation metrics (e.g., AI agents resolving a large share of internal requests) and positioned the platform as a foundation for enterprise-wide AI adoption. [10]
This matters for NOW stock because it frames ServiceNow’s long-term story as more than IT ticketing: the company is attempting to own the orchestration layer where workflows, data, and AI agents meet.
Analyst forecasts and price targets on December 18, 2025
For investors looking for a “market view,” analyst consensus is still broadly constructive—but there’s clear dispersion and growing sensitivity to M&A risk and valuation.
Wall Street consensus snapshot
MarketBeat’s aggregated data (as displayed today) shows:
- Consensus rating: “Moderate Buy”
- Coverage: 40 analyst ratings
- Consensus 12-month price target:$225.09 (split-adjusted)
- High / low target range:$263.00 / $144.80 (split-adjusted) [11]
That range is important: it signals that analysts broadly see upside from today’s levels—but not everyone agrees on how much, and the downside scenario is now explicitly visible in the lower bound.
Recent changes and initiations
In the days surrounding this selloff and the split:
- MarketBeat lists BTIG Research initiating coverage with a Buy rating and a split-adjusted target displayed around $200. [12]
- TipRanks/TheFly also reported BTIG assuming coverage with a Buy rating and a $1,000 price target (which is commonly how targets were quoted pre-split; investors should expect targets to be shown on a split-adjusted basis over time). BTIG’s bull case referenced ServiceNow operating above a “Rule of 50” framework and highlighted the company’s AI platform positioning. [13]
A note on split-adjusted targets (don’t get fooled by mismatched units)
Because the split became effective today, different news and data platforms may temporarily show price targets in different “units” (pre-split vs. post-split). If you’re comparing targets to today’s ~$150 quote, confirm whether the price target has already been adjusted.
Valuation and fundamentals: why ServiceNow is a high-conviction (and high-debate) name
Even after the selloff, ServiceNow remains a premium-valued enterprise software company—and that’s why both bulls and bears have strong opinions.
What the latest third-quarter reporting signaled
In late October, Reuters reported ServiceNow raised its annual subscription revenue forecast, citing AI-driven demand. Reuters also noted:
- Full-year subscription revenue forecast: $12.84B–$12.85B (raised from the prior range)
- Q3 subscription revenue: $3.30B
- Q3 total revenue: $3.41B
- Adjusted EPS: $4.82 [14]
Reuters also described Now Assist’s generative AI capabilities (summarization, search, virtual agent interactions) as part of the productivity narrative driving enterprise adoption. [15]
The valuation pressure point
Investing.com’s Dec. 18 item emphasized how valuation remains a flashpoint, referencing a high earnings multiple and noting strong gross margin and revenue growth metrics alongside the stock’s drawdown. [16]
This is the core tension in ServiceNow stock today:
- Bulls see a category leader evolving into an AI workflow control tower with durable subscription economics.
- Bears focus on premium valuation, intensifying competition, and the risk that large acquisitions could disrupt near-term execution.
Options and derivatives: what changes after the split
For options traders, stock splits aren’t just cosmetic—they change contract terms.
The Options Clearing Corporation (OCC) issued an information memo describing adjustments tied to ServiceNow’s 5-for-1 split, including the effective date (Dec. 18, 2025) and how contract multipliers and strike prices are adjusted. [17]
In plain English:
- Strike prices are reduced proportionally
- Contract deliverables and multipliers adjust so the economic exposure stays consistent
If you trade NOW options, it’s worth checking your broker’s contract specifications today, because the symbols and deliverables can look unfamiliar right after a corporate action.
A “quiet” but notable ecosystem headline today: demand for ServiceNow services continues globally
Not all ServiceNow-related news moves NOW stock directly, but ecosystem signals matter—especially for enterprise platforms.
On Dec. 18, 2025, MarketScreener reported that NTT DATA acquired The Cloud People Group AS, describing it as a move to expand ServiceNow expertise and strengthen global reach. [18]
While this is not a ServiceNow corporate announcement, it reflects continued investment by large services players in ServiceNow implementation capacity—often a proxy for customer demand and project pipeline.
What investors are watching next for NOW stock
With the split complete, attention is likely to narrow to execution and headline risk:
- Armis deal clarity
If ServiceNow confirms (or denies) a major acquisition, the market’s focus will shift from rumor-driven volatility to integration and financial impact. Reuters explicitly noted talks could still fall apart. [19] - Integration progress: Moveworks
ServiceNow has positioned Moveworks as a cornerstone for its agentic AI and employee-facing experience layer. The market will want evidence this improves growth, retention, and expansion. [20] - AI monetization and competitive dynamics
ServiceNow’s own commentary and Reuters reporting have tied demand to AI-enabled automation, but competition across enterprise AI and workflow tooling remains intense. [21] - Multiple sensitivity
High-multiple software tends to react sharply to changes in sentiment around growth durability, interest rates, and corporate spending cycles—especially after large moves like the one NOW has seen this week.
Bottom line
On December 18, 2025, the headline story for ServiceNow stock (NYSE: NOW) is the split-adjusted debut of a 5-for-1 stock split—arriving in the middle of a turbulent week shaped by Armis acquisition talk, a newly completed Moveworks integration, and a market trying to re-price a premium software leader amid shifting AI narratives.
For investors, the practical takeaway is simple: the split changes the “sticker price,” but the real drivers remain deal discipline, AI execution, and subscription growth durability.
References
1. investor.servicenow.com, 2. www.investing.com, 3. www.reuters.com, 4. investor.servicenow.com, 5. www.sec.gov, 6. www.reuters.com, 7. www.reuters.com, 8. www.investopedia.com, 9. newsroom.servicenow.com, 10. newsroom.servicenow.com, 11. www.marketbeat.com, 12. www.marketbeat.com, 13. www.tipranks.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.investing.com, 17. infomemo.theocc.com, 18. www.marketscreener.com, 19. www.reuters.com, 20. newsroom.servicenow.com, 21. www.reuters.com
