NEW YORK, Dec. 27, 2025, 11:06 a.m. ET — Market closed
ServiceNow, Inc. (NYSE: NOW) stock is heading into the final three trading days of 2025 with investors balancing two very different forces: a thin, holiday-driven tape that can exaggerate moves, and an unusually consequential strategic shift as the enterprise software leader pushes deeper into cybersecurity with its planned Armis acquisition.
With U.S. markets closed for the weekend, NOW shareholders are looking back at a quiet Friday session that left the broader market near record levels—and looking ahead to what could be a more reactive open on Monday as Wall Street digests analyst target cuts, year-end positioning, and the still-fresh debate over how much acquisition risk investors should price into the stock.
ServiceNow stock price today: where NOW finished the week
ServiceNow shares ended Friday, Dec. 26 at $153.89, up 0.85% on the day, after trading between roughly $152.21 and $154.48 in a light-volume, post-holiday session. [1]
After-hours trading was also subdued, with quotes around the mid-$153 area late Friday evening. [2]
On a broader timeframe, the stock has been struggling to regain momentum after a volatile 2025, and several widely followed market-data services still show NOW down roughly the high-20% range year-to-date on a split-adjusted basis. [3]
The market backdrop: thin trading, “Santa Claus rally” watch, and why volatility can spike
Friday’s session was defined less by fundamentals and more by mechanics: post-Christmas participation was light, and major indexes finished nearly flat. Reuters described a “light-volume” session with few catalysts, noting that the market is in the seasonal “Santa Claus rally” window (the last five trading days of the year and the first two of the next). [4]
Ryan Detrick, chief market strategist at Carson Group, told Reuters the market was “catching our breath” after a strong run and suggested there could still be “a little more upward bias going forward” as the period plays out. [5]
For individual names like ServiceNow—especially ones at the center of active analyst debate—this kind of tape matters. When liquidity thins, price action can become more headline-sensitive, and short-term swings can look bigger than the underlying change in investor conviction.
The newest 24–48 hour NOW headlines: TD Cowen trims target, keeps “buy”
The most notable fresh stock-specific development over the past 24–48 hours has been an analyst move: TD Cowen reduced its price target on ServiceNow to $230 from $250 while maintaining a Buy rating, according to multiple market-news and ratings trackers published Friday into Saturday. [6]
One market brief circulating late in the week tied the cut to concerns that ServiceNow is moving from smaller “tuck-in” acquisitions toward larger deals, raising questions about organic growth and increasing integration risk. [7]
That framing matters because it goes directly to the key question hanging over NOW since the Armis announcement: Is ServiceNow buying its way into the next leg of growth—or paying a premium that could compress returns and raise execution risk?
Wall Street’s forecast picture: still “buy”-leaning, but with more scrutiny on M&A risk
Even with the latest target reduction, the Street’s stance on ServiceNow remains broadly constructive—just more cautious on the path.
- A market-data brief citing LSEG-compiled analyst data said the average rating from 47 analysts is “buy,” with a median price target around $230 (split-adjusted). [8]
- MarketBeat’s aggregated ratings data (also updated this weekend) similarly lists ServiceNow with a “Moderate Buy”-type consensus and an average target price around the low-$220s. [9]
The takeaway for investors into Monday isn’t that Wall Street has turned bearish—it’s that the debate has shifted. More of the conversation is now about integration and deal cadence, not just subscription growth and AI-driven product demand.
Why the Armis acquisition is still the center of the ServiceNow stock story
While the TD Cowen note is the newest headline, the biggest driver of sentiment remains ServiceNow’s agreement to acquire Armis for $7.75 billion in cash, the company’s largest-ever deal. [10]
Reuters reported that ServiceNow struck the deal as it seeks to bolster offerings to counter rising AI-driven cyber risks, and that the transaction is expected to close in the second half of 2026. [11]
Just as important for investors, Reuters quoted ServiceNow CFO Gina Mastantuono addressing concerns about acquisition “splurge,” saying: “Our security stack, with the acquisition of Armis, is very well positioned, so we won’t need to do any more M&A in security space.” [12]
From ServiceNow’s side, the company has positioned the deal as a way to connect Armis’ asset intelligence and exposure management with ServiceNow’s workflow automation—moving from seeing risk to driving remediation through operational processes. In its announcement, ServiceNow said the acquisition is expected to more than triple the market opportunity for its security and risk business. [13]
ServiceNow’s president/COO/chief product officer Amit Zavery framed the strategic rationale around AI-era governance and security across heterogeneous environments. [14]
Armis co-founder and CEO Yevgeny Dibrov similarly described the combination as a way to bring real-time intelligence and prioritized action together at scale. [15]
What investors are watching now: whether this large, all-cash deal becomes a platform accelerant (expanding distribution, deepening security workflows, increasing stickiness) or a valuation and integration overhang—particularly because the closing timeline stretches well into 2026. [16]
Leadership signal: CEO Bill McDermott’s contract extended through 2030
Another key (and still very recent) corporate development: ServiceNow disclosed an amendment to CEO William R. “Bill” McDermott’s employment agreement.
In an 8-K filed around the Armis announcement, ServiceNow said the amendment (effective Jan. 1, 2026) provides that McDermott will remain in service through at least Dec. 31, 2030, serving as CEO/co-CEO or chairman roles at the board’s discretion, with compensation tied to performance versus peers. [17]
For markets, this cuts two ways:
- Positive: leadership continuity during a major strategic expansion into security.
- Neutral to negative for some: governance/comp terms can draw scrutiny when paired with large M&A, especially if investors fear “empire-building.”
Don’t get tripped up by the split: ServiceNow’s 5-for-1 stock split is now “in the numbers”
One practical point that continues to affect headlines and comparisons: ServiceNow recently completed a 5-for-1 stock split, with split-adjusted trading beginning Dec. 18, 2025, per the company’s press release. [18]
That means:
- Today’s ~$150 share price is post-split.
- Many historical price levels, targets, and charts are now split-adjusted—but not all commentary across the web is perfectly consistent.
What investors should know before Monday’s open
Because the exchange is closed today, the key question is not “what’s happening now,” but what could move NOW when markets reopen.
Here are the most important items to track into Monday’s session:
1) Year-end positioning + light liquidity can amplify moves
Reuters’ week-ahead preview warned that year-end portfolio adjustments can cause volatility, particularly when volume is light and price moves can be exaggerated. [19]
2) Macro catalysts: Fed minutes and rate-cut expectations
Next week’s key scheduled macro event is the release of minutes from the Federal Reserve’s most recent meeting, which Reuters said could provide more color on the path of interest rates. [20]
That matters for ServiceNow because high-multiple software valuations are highly sensitive to rate expectations.
3) Rotation risk inside tech
Reuters noted that stocks shook off earlier-month turbulence tied partly to concerns around AI spending, and investors are watching whether leadership broadens beyond mega-cap tech. [21]
For NOW, this can show up as relative performance versus other enterprise software names, not just absolute price changes.
4) M&A narrative: “platform expansion” vs. “integration overhang”
The near-term flow of commentary is likely to remain centered on Armis integration strategy, the cash/debt funding implications, and whether ServiceNow pauses additional dealmaking—an area CFO Mastantuono directly addressed to Reuters. [22]
5) Watch the headline channel for more analyst revisions
A single price-target cut rarely moves a stock by itself, but clusters of revisions can. The TD Cowen move is now on the tape, and investors will be watching for follow-on notes or updated models from other firms as the Armis deal gets digested. [23]
Bottom line for ServiceNow stock heading into the next session
ServiceNow enters the final stretch of 2025 with shares stabilizing after a volatile month, while the broader market hovers near highs in a seasonally thin trading environment. [24]
In the very near term, NOW stock may trade more on narrative than numbers: investor confidence in management’s ability to integrate a major security acquisition—without sacrificing organic growth discipline—remains the key swing factor, and the latest TD Cowen target cut underscores that the Street is increasingly focused on execution risk even while maintaining an overall constructive outlook. [25]
The next regular NYSE trading session begins Monday at 9:30 a.m. ET. [26]
References
1. finance.yahoo.com, 2. www.marketbeat.com, 3. www.marketbeat.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.marketscreener.com, 7. longbridge.com, 8. longbridge.com, 9. www.marketbeat.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. investor.servicenow.com, 14. investor.servicenow.com, 15. investor.servicenow.com, 16. www.reuters.com, 17. www.streetinsider.com, 18. newsroom.servicenow.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.marketscreener.com, 24. www.reuters.com, 25. longbridge.com, 26. www.nyse.com
