ServiceNow, Inc. (NYSE: NOW) is back in the spotlight on December 24, 2025, as investors weigh two major developments: the company’s $7.75 billion all-cash agreement to acquire cybersecurity firm Armis and a new CEO contract extension for Bill McDermott through 2030. Add in the recent 5‑for‑1 stock split that reset the share price and made older price targets harder to compare, and you have a stock that’s suddenly a daily headline again.
Below is a detailed, publication-ready breakdown of today’s ServiceNow stock news, what analysts are forecasting, and the key bull/bear arguments shaping NOW’s outlook into 2026.
ServiceNow stock price today (Dec. 24, 2025): NOW trades near $152 post‑split
In thin pre-holiday trading, ServiceNow shares are hovering around the low‑$150s. As of the latest available update on Dec. 24, NOW traded at $152.20, down about 1.4% from the prior close, with an intraday range roughly between $152.08 and $154.79.
One important context point for readers: ServiceNow’s 5‑for‑1 stock split took effect recently, so the “new” $150-ish price level is split‑adjusted, not a collapse from prior three-digit levels.
The biggest headline driving NOW stock: ServiceNow agrees to buy Armis for $7.75 billion
What was announced
ServiceNow confirmed it has entered into an agreement to acquire Armis for approximately $7.75 billion in cash, subject to customary adjustments. The company says it expects to fund the deal with a combination of cash on hand and debt, and it expects the transaction to close in the second half of 2026 (pending regulatory approvals and other closing conditions). [1]
Why Armis matters to ServiceNow’s strategy
Armis positions itself in cyber exposure management and cyber‑physical security—covering not just IT devices but also operational technology (OT) and medical devices. ServiceNow’s announcement frames the acquisition as a way to expand security coverage across “the full attack surface” for enterprises, governments, and critical infrastructure. [2]
ServiceNow also disclosed that Armis is a meaningful scale asset operationally, with roughly 950 employees, and that its platform is used by large enterprises (including a sizable footprint among top U.S. corporations). [3]
How markets and analysts are reacting today
The market’s initial reaction has been cautious rather than celebratory. Coverage on Dec. 24 notes that investors have been uneasy about both the price tag and the company’s growing reliance on large acquisitions to extend its platform—especially after speculation earlier this month triggered a sharp selloff. [4]
At the same time, the strategic rationale is clear: as AI-driven workflows scale, companies are pushing harder for security, governance, and risk controls that work across sprawling device footprints—exactly where Armis’ strengths are often positioned. [5]
Why NOW has been volatile in December: deal rumors, a downgrade, then confirmation
ServiceNow stock volatility didn’t start with today’s official announcement.
Earlier in mid‑December, reports about a potential Armis deal and a related analyst downgrade contributed to an unusually sharp down day, with multiple outlets describing a rare double‑digit percentage drop. [6]
Several reports also emphasize that NOW has struggled on a year‑to‑date basis in 2025—down around a quarter depending on the measurement window cited. [7]
The key investor concern is straightforward: acquisitions can accelerate product roadmaps, but they also raise questions about integration risk, execution bandwidth, and balance-sheet leverage—especially when the deal is funded with cash plus debt. [8]
CEO news today: Bill McDermott extends contract through 2030
Alongside the acquisition headlines, ServiceNow also disclosed leadership continuity.
A regulatory filing (reported broadly on Dec. 24) indicates the company amended CEO Bill McDermott’s employment agreement, effective January 1, 2026, confirming he will remain with the company through at least December 31, 2030. The filing also describes flexibility for him to serve as CEO, co‑CEO, Executive Chairman, or Non‑Executive Chairman (with board discretion and mutual agreement), plus updates to CEO severance terms. [9]
For investors, this can be read two ways:
- Stability angle: Continuity at the top matters when a company is integrating multiple acquisitions and expanding into security and AI workflow “control tower” ambitions.
- Governance/comp angle: Updated severance and change‑in‑control terms may draw attention to executive protections and costs in certain scenarios. [10]
The 5‑for‑1 stock split: why older price targets look “wrong” and how to compare them
ServiceNow’s 5‑for‑1 stock split was approved earlier this month and is now in effect, which is crucial context for anyone tracking forecasts and price targets.
According to ServiceNow’s announcement:
- Shareholders of record as of December 16, 2025 received four additional shares for each share held.
- The distribution was expected after market close on or about December 17, 2025.
- Trading on a split‑adjusted basis was expected to begin on December 18, 2025. [11]
The OCC also issued an options adjustment memo reflecting the 12/18/2025 ex‑distribution date and contract adjustments. [12]
Why this matters for readers today:
Some analysts and publishers may still reference pre‑split price targets from before Dec. 18. A pre‑split target of, say, $1,150 roughly corresponds to about $230 on a split‑adjusted basis (divide by 5). That’s why you may see “two different worlds” of price targets floating around the internet.
ServiceNow stock forecast: where Wall Street price targets and ratings stand on Dec. 24, 2025
Despite the sharp December drawdown, aggregated Wall Street sentiment screens still skew positive.
Across multiple analyst-aggregation sources, the broad picture is consistent:
- Consensus view: generally Buy / Strong Buy territory
- Average 12‑month target: roughly $223–$229 (split‑adjusted)
- Target range: about $155 on the low end up to roughly $260–$266 on the high end [13]
This implies a potential upside on the order of mid‑40% from the mid‑$150s price area—again, based on consensus targets rather than any guarantee of future performance. [14]
Earnings outlook: what analysts expect next
For near-term fundamentals, investors are also scanning earnings expectations.
Yahoo Finance’s analyst estimates page shows projections for quarterly and annual EPS and revenue, including figures for the next quarter (Mar 2026) and next year (2026). [15]
Meanwhile, “next earnings date” trackers are not fully aligned: some estimate late January 2026, while others point to early February 2026, and several note the company has not formally confirmed the next report date. [16]
Fundamentals backdrop: ServiceNow’s latest guidance before the Armis announcement
To frame the acquisition debate, it helps to remember what ServiceNow was already guiding to before this week’s news.
In its Q3 2025 results release, ServiceNow provided Q4 2025 guidance that included:
- Subscription revenue guidance around $3.42–$3.43 billion
- cRPO growth guidance around 23%
- Non‑GAAP operating margin guidance around 30%
- And full-year 2025 guidance implying subscription revenue growth above 20% with a free cash flow margin target in the mid‑30% range [17]
Those metrics matter because they’re part of the investor calculus: Can ServiceNow keep expanding margins and cash flow while absorbing large acquisitions funded partly with debt?
Bull case for ServiceNow stock: why some investors see Armis as a long-term “platform” win
Supporters of the deal thesis tend to focus on five points:
- Security demand rises with AI adoption
As enterprises automate and connect more endpoints (and as agentic AI expands), the attack surface grows—making “security + workflow automation” an appealing combined story. [18] - Armis extends NOW into cyber‑physical and OT environments
IT service management is mature; OT/medical/connected device environments represent a different growth lane, particularly for critical infrastructure and regulated sectors. [19] - Cross‑sell potential into ServiceNow’s enterprise base
If Armis can be distributed through ServiceNow’s platform relationships, it could expand share-of-wallet—though the magnitude is debated. - Leadership continuity reduces execution risk
The CEO contract extension provides a “stability” narrative at a time when M&A execution will be scrutinized. [20] - Street targets still imply meaningful upside
Even after the volatility, many sell-side targets remain well above current levels (split-adjusted). [21]
Bear case for ServiceNow stock: the “overpay and integrate” risk investors are pricing in
Skeptics are also making concrete arguments—especially after the stock’s sharp reaction to the deal narrative this month.
Key bear points include:
- Acquisition multiple and “synergy realism”
Some critical takes argue ServiceNow may be paying too much relative to Armis’ recurring revenue base and question how much real cross‑selling synergy is achievable between workflow automation and cybersecurity. [22] - Leverage and capital allocation concerns
ServiceNow explicitly expects to fund the purchase with cash + debt, so investors will watch leverage, interest expense, and any change in buyback posture. [23] - Suite vs. best-of-breed pushback
CIO and security leaders sometimes resist consolidating too much into a single vendor suite if it compromises best-of-breed capabilities, which can limit real-world wallet-share expansion. [24] - Market sensitivity to tech and AI valuations into 2026
Broader market narratives—AI spending expectations, earnings growth assumptions, and rate-cut paths—are shaping sentiment going into 2026, with some strategists warning risks are growing after a multi-year run. [25]
What to watch next for NOW stock: the checklist investors will track after Dec. 24
If you’re following ServiceNow stock into year-end and early 2026, these are the practical catalysts likely to move the narrative:
- Financing details: debt issuance timing, pricing, and leverage targets for the Armis deal. [26]
- Regulatory and timeline updates: management has guided to closing in 2H 2026, so milestones (or delays) matter. [27]
- Guidance durability: whether subscription growth and margin targets hold while integrating multiple acquisitions. [28]
- Next earnings report clarity: the company has not fully standardized the next report date across trackers, so investors will look for confirmation. [29]
- Product momentum: updates tied to the company’s platform releases (including its Zurich platform release materials and events) can influence the “AI platform” narrative. [30]
Bottom line on Dec. 24, 2025: ServiceNow is trading like a company in transition
ServiceNow stock is ending 2025 with a clear message from the market: investors still respect the company’s platform position, recurring revenue engine, and AI workflow ambitions—but they want proof that ServiceNow can execute a large cybersecurity acquisition without sacrificing financial discipline.
The Armis deal and the CEO extension make NOW a high-attention enterprise software name heading into 2026. Whether that attention turns into renewed momentum will likely depend on integration progress, financing optics, and how convincingly ServiceNow can translate “AI control tower” messaging into measurable revenue and margin outcomes.
This article is for informational purposes only and is not investment advice.
References
1. newsroom.servicenow.com, 2. newsroom.servicenow.com, 3. newsroom.servicenow.com, 4. www.marketwatch.com, 5. www.marketwatch.com, 6. www.investopedia.com, 7. www.investors.com, 8. newsroom.servicenow.com, 9. www.stocktitan.net, 10. www.stocktitan.net, 11. newsroom.servicenow.com, 12. infomemo.theocc.com, 13. www.tipranks.com, 14. stockanalysis.com, 15. finance.yahoo.com, 16. www.marketbeat.com, 17. www.servicenow.com, 18. www.marketwatch.com, 19. newsroom.servicenow.com, 20. www.stocktitan.net, 21. stockanalysis.com, 22. seekingalpha.com, 23. newsroom.servicenow.com, 24. www.cio.com, 25. www.reuters.com, 26. newsroom.servicenow.com, 27. newsroom.servicenow.com, 28. www.servicenow.com, 29. www.marketbeat.com, 30. www.servicenow.com
