NEW YORK, Dec. 27, 2025, 4:52 p.m. ET — Market closed
ServiceNow, Inc. (NYSE: NOW) stock is heading into the final stretch of 2025 with Wall Street balancing two competing narratives: a year-end equity backdrop still hovering near record territory, and company-specific debate over whether ServiceNow’s cybersecurity expansion—led by its planned Armis acquisition—adds durable growth or introduces execution and financing risk.
With the New York Stock Exchange closed for the weekend, the latest actionable reference point is Friday’s close. ServiceNow shares finished the Dec. 26 session at $153.89, up 0.85% on the day, after trading between roughly $152.21 and $154.48. [1]
A calm market tape—plus “Santa Claus rally” chatter—sets the stage
Friday’s post-Christmas session was subdued across U.S. equities, with major indexes slipping only fractionally on light volume after a five-session run-up, according to Reuters. Strategists pointed to year-end dynamics and the start of the seasonal “Santa Claus rally” window as investors look for an upbeat finish to the year. [2]
That broader tone matters for ServiceNow because large-cap software tends to trade not just on company fundamentals, but also on macro-sensitive valuation assumptions—especially expectations around interest rates and risk appetite.
The newest analyst headline: TD Cowen trims its ServiceNow target
The most time-sensitive, stock-specific development in the last 24–48 hours has been another analyst adjustment. TD Cowen lowered its price target on ServiceNow to $230 from $250 while maintaining a Buy rating, according to an MT Newswires item carried by MarketScreener. [3]
While such target revisions aren’t uncommon in the wake of major corporate deals, they are notable right now because they speak to what investors are focusing on: whether ServiceNow’s pivot toward bigger, more transformational acquisitions raises integration risk or alters the company’s margin and growth profile.
Why the Armis acquisition is still the key story driving the debate
Even though the deal announcement is earlier in the week, it remains the central “overhang” investors are actively pricing.
ServiceNow said it has agreed to acquire Armis—a cyber exposure management and cyber-physical security company—for about $7.75 billion in cash, and expects to fund the transaction with a combination of cash on hand and debt. The company said the deal is expected to close in the second half of 2026, subject to regulatory approvals and other customary conditions. [4]
In its announcement, ServiceNow framed the acquisition as a strategic step toward a unified security platform that can “see, decide, and act” across enterprise technology footprints—spanning traditional IT, operational technology (OT), and medical devices—by connecting discovery and intelligence to automated workflow-driven response. [5]
ServiceNow President, COO and CPO Amit Zavery said the company is building “the security platform of tomorrow,” arguing that in an “agentic AI era” trust and governance across clouds, assets, AI systems, and devices are becoming non-negotiable requirements for scaled adoption. [6]
Armis Co-founder and CEO Yevgeny Dibrov emphasized the speed at which AI is reshaping the threat landscape, positioning the combination as a way for customers to gain real-time visibility into exposure and act before incidents occur. [7]
The release also included commentary from Larry Feinsmith, head of Global Tech Strategy, Innovation & Partnerships at JPMorgan Chase, who characterized the combination as creating a more dynamic picture of connected assets alongside an AI- and agentic-powered approach to securing and enabling trusted AI. [8]
Another recent target cut: UBS moves to $200
In addition to TD Cowen’s latest adjustment, UBS reduced its ServiceNow price target to $200 from $230 earlier in the week, also via an MT Newswires item (as shown by MarketScreener). [9]
Taken together, the target trims underscore that the market’s current conversation is less about whether ServiceNow is a high-quality platform business—and more about what investors should pay for it given near-term uncertainty around major M&A execution.
Don’t let the price levels fool you: ServiceNow just completed a 5-for-1 stock split
A key reason ServiceNow’s share price “looks different” lately is structural, not fundamental.
ServiceNow shareholders approved a 5-for-1 stock split in early December. The company said shareholders of record as of Dec. 16, 2025 would receive four additional shares per share held, with distribution after market close around Dec. 17 and split-adjusted trading expected to begin Dec. 18, 2025. [10]
For investors and readers comparing older headlines with newer ones, the practical takeaway is simple: make sure price targets, charts, and 52-week highs/lows are being discussed on a split-adjusted basis (or clearly labeled if they’re not).
Corporate governance update: CEO’s employment agreement amended through 2030
Another item still fresh in investors’ minds is leadership continuity.
A recent SEC-filed amendment shows ServiceNow CEO William R. McDermott agreed to remain in service through at least Dec. 31, 2030, effective Jan. 1, 2026, with the potential to serve as CEO, co-CEO, Executive Chairman, or Non-Executive Chairman at the board’s discretion, and with compensation tied to performance relative to peers when serving as CEO/co-CEO. [11]
Where Wall Street’s consensus sits now
Despite the recent volatility and target trims, aggregated sell-side sentiment still leans positive.
MarketWatch’s analyst estimates page lists ServiceNow’s average recommendation as “Buy” and shows an average target price of about $225.39 (post-split), based on dozens of analyst ratings. [12]
At Friday’s close near $154, that consensus target implies meaningful upside—while also highlighting the current market divide: bulls see a discounted category leader, while skeptics see a company entering a higher-risk integration phase after a string of acquisitions.
The stock’s recent setup: range-bound after a steep drawdown
In the latest session, ServiceNow traded in a relatively tight band (roughly $152–$154) with volume around 5.0 million shares, per historical pricing data. [13]
Zooming out slightly, ServiceNow has been trading well below earlier 2025 highs; MarketWatch noted this week that the stock was more than 30% below its 52-week high (split-adjusted) at the time of its Dec. 24 close. [14]
That combination—thin holiday liquidity, elevated headline sensitivity, and a stock trying to base after a sharp selloff—is exactly the setup where Monday’s opening tone can matter disproportionately.
What investors should know before the next session
Because the market is closed now, the near-term focus shifts from intraday price action to what could move the stock at Monday’s open:
First, it’s still a holiday-impacted tape. Reuters has emphasized that year-end trading can be light, and light volume can exaggerate moves—especially when markets are close to record levels and investors are watching technical milestones. [15]
Second, the calendar matters into year-end and New Year’s. Investopedia reports that U.S. stock traders have a full day on New Year’s Eve (Dec. 31), while bond trading ends at 2 p.m. ET that day, and both stock and bond markets are closed on Jan. 1, 2026 for New Year’s Day. [16]
Third, macro catalysts next week could shape sentiment for growth software. Reuters’ “Week Ahead” preview flagged Federal Reserve meeting minutes due Tuesday as a key scheduled event and noted that investors remain highly focused on the path of rate cuts heading into 2026. Strategists quoted by Reuters said momentum has favored the bulls, while also noting that low volumes and year-end portfolio adjustments can spur volatility. [17]
For ServiceNow specifically, that means Monday’s setup may revolve around:
- whether investors continue to “look through” the Armis acquisition and treat it as strategic, or keep discounting for integration and financing risk;
- whether additional analyst notes emerge that either stabilize expectations or reset them lower;
- whether broader market risk appetite holds, particularly for large-cap tech and software.
The next big fundamental catalyst: earnings timing is approaching, but dates vary by calendar
Investors are also starting to look ahead to ServiceNow’s next earnings report. Here, it’s important to note that third-party earnings calendars are not perfectly aligned.
- Investing.com lists ServiceNow’s next earnings release in late January 2026 (its page references Jan. 28, 2026 in its FAQ section). [18]
- Nasdaq’s earnings page, meanwhile, shows an algorithm-derived estimate pointing to early February 2026 (it cites an estimated Feb. 4, 2026 date). [19]
- Zacks also indicates an expected Feb. 4, 2026 report date based on past history. [20]
The practical takeaway for investors: treat the window as “late January to early February” until ServiceNow formally confirms the reporting date.
Bottom line for ServiceNow stock heading into Monday
ServiceNow enters the next session with a clear set of cross-currents:
- Supportive market structure: equities remain near record levels, with year-end seasonal narratives still in play. [21]
- Active stock-specific re-rating: analysts are refining targets after the Armis deal, and investors are testing where a “new” valuation floor should sit. [22]
- A high-stakes strategic bet: ServiceNow is explicitly positioning Armis as a step-change in security exposure management tied to AI-era risk, and the company says the transaction will be funded with cash and debt and close in 2026—elements that can amplify both upside and skepticism. [23]
- Near-term catalysts are real: Fed minutes, year-end positioning, and earnings-date clarity can all affect how investors price software multiples in the weeks ahead. [24]
For Monday, the market’s question is likely to be straightforward: Is NOW stabilizing into a base after a deal-driven selloff, or is the next leg in its repricing still ahead?
References
1. stockanalysis.com, 2. www.reuters.com, 3. www.marketscreener.com, 4. investor.servicenow.com, 5. investor.servicenow.com, 6. investor.servicenow.com, 7. investor.servicenow.com, 8. investor.servicenow.com, 9. www.marketscreener.com, 10. newsroom.servicenow.com, 11. www.sec.gov, 12. www.marketwatch.com, 13. stockanalysis.com, 14. www.marketwatch.com, 15. www.reuters.com, 16. www.investopedia.com, 17. www.reuters.com, 18. www.investing.com, 19. www.nasdaq.com, 20. www.zacks.com, 21. www.reuters.com, 22. www.marketscreener.com, 23. investor.servicenow.com, 24. www.reuters.com
