NEW YORK, December 31, 2025, 14:52 ET — Regular session
- ServiceNow shares were down about 0.3% in afternoon trading.
- The stock tracked a mild pullback in U.S. tech as liquidity thinned into the New Year holiday.
- Investors are weighing a CEO contract amendment that takes effect Jan. 1 and the company’s recently announced Armis deal.
ServiceNow shares edged lower on Wednesday as investors pared risk in thin year-end trading on Wall Street. The enterprise software maker’s stock was down about 0.3% at $153.81.
The muted move came as major U.S. indexes drifted lower in the final session of 2025, with technology stocks slightly weaker on the day. “I do not expect that the last few days will have so much bearing on the performance of the next year,” Giuseppe Sette, co-founder and president of Reflexivity, said, pointing to profit-taking when liquidity is low. 1
For ServiceNow, the final week of the year has been less about fresh headlines and more about positioning. Traders have been closing books after a busy December that included corporate actions and dealmaking that can reshape the stock’s near-term narrative.
The stock traded in a narrow range on Wednesday, between $152.70 and $154.69, with about 2.8 million shares changing hands by mid-afternoon.
ServiceNow’s share price is also split-adjusted after shareholders approved a 5-for-1 stock split earlier this month — a move that increased the number of shares outstanding and lowered the per-share price. Trading on a split-adjusted basis was expected to begin on Dec. 18, the company said. 2
Investors are also digesting a management and compensation update that takes effect at the start of 2026. A Dec. 23 SEC filing showed ServiceNow amended CEO Bill McDermott’s employment agreement, saying he will remain in service through at least Dec. 31, 2030, and may serve as CEO, co-CEO, executive chairman or non-executive chairman at the board’s discretion. The filing also described changes to the executive severance policy, including treatment of equity awards such as restricted stock units — stock-based pay that typically vests over time — under certain termination scenarios. 3
The other overhang is deal-related. ServiceNow agreed on Dec. 23 to buy cybersecurity startup Armis for $7.75 billion, its biggest-ever acquisition, aiming to add capabilities such as device scanning and threat detection. Reuters reported the deal is expected to close in the second half of 2026. 4
That purchase pushed ServiceNow deeper into cybersecurity at a time when boards are spending on protections tied to cloud and AI adoption. The bet is that security tooling can be embedded into workflow automation and sold across a large installed base.
What investors are watching next is execution. That includes how quickly ServiceNow can integrate Armis’ technology into its platform, whether the acquisition changes margin expectations, and whether management signals a pause in large deals after a busy year.
Attention is also shifting to governance and leadership mechanics as the calendar flips. The contract language outlining potential CEO and chair roles can matter for investors focused on succession planning and compensation discipline.
For the broader tape, rate expectations remain the backdrop for high-multiple software stocks. Growth names like ServiceNow tend to react sharply to shifts in bond yields because a larger share of their value rests on profits expected further out.
With no new company updates on Wednesday, traders said the next clear read-through for NOW shares will come from the first week of 2026 — and from the next set of company disclosures that put numbers behind the strategy.
