Dec. 22, 2025 — ServiceNow (NYSE: NOW) is starting the holiday-shortened week in the spotlight for a very specific reason: investors are trying to price the company’s AI-and-security expansion strategy at the same time the stock is absorbing a 5-for-1 split and a bout of acquisition-driven volatility.
As of 17:00 UTC on Dec. 22, ServiceNow shares were trading around $156.25, up about 0.6% on the day (split-adjusted). But the bigger story isn’t today’s small move—it’s the rapid chain of events over the last two weeks that reshaped sentiment around the enterprise software bellwether.
Below is a detailed, publication-ready roundup of the latest ServiceNow stock news, forecasts, and market analysis as of Dec. 22, 2025—including what’s confirmed, what’s still rumor, and the key signposts investors are watching into early 2026.
Why ServiceNow stock is “headline-heavy” right now
ServiceNow is widely known as a cloud-based workflow automation and enterprise AI platform provider—the company positions its Now Platform as connecting “people, processes, data, and devices” to drive productivity and business outcomes. [1]
But on the market tape, the conversation has narrowed to three big catalysts:
- A reported mega-deal: talks to acquire cybersecurity firm Armis in a transaction that could be valued at up to $7 billion (reported, not confirmed). [2]
- A completed AI acquisition: ServiceNow has completed its acquisition of Moveworks, deepening its “agentic AI” and enterprise search footprint. [3]
- A newly effective stock split: the 5-for-1 stock split began trading on a split-adjusted basis on Dec. 18, 2025, altering how prices and many analyst targets appear. [4]
Each of those would be meaningful alone. Together—and happening within days—they’ve created one of the most eventful stretches for NOW stock this year.
The Armis acquisition talks: what’s known, what isn’t, and why the market reacted sharply
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 up to $7 billion, citing Bloomberg’s reporting and unnamed sources. Reuters also noted the deal could be announced soon, but talks might fall apart or another bidder could emerge. [5]
Why the stock sold off
On Monday, Dec. 15, ServiceNow shares fell more than 11%, making it the biggest decliner in the S&P 500 that session, after the Armis talks surfaced. [6]
Multiple outlets framed the reaction similarly: investors weren’t necessarily rejecting cybersecurity as a strategic direction—they were reacting to deal size, timing, and what the price tag implies about growth and capital allocation.
MarketWatch’s coverage highlighted analyst concern that such a large purchase could signal anxiety about achieving longer-term growth targets organically and could distract from generative AI priorities—especially if it’s the start of a more aggressive (and expensive) M&A playbook. [7]
Who is Armis (and why ServiceNow might want it)?
Armis is generally described as focusing on identifying and managing connected devices—an attractive adjacency for an enterprise platform that already lives inside IT operations and asset workflows. Investopedia noted Armis is owned by Insight Partners, which bought it in 2020, and that neither company commented publicly on the reported talks at the time of the initial story. [8]
The “split effect”: why NOW’s price and many targets suddenly look much smaller
ServiceNow’s 5-for-1 stock split is now in effect. The company said shareholders approved the split on Dec. 5, with trading on a split-adjusted basis expected to begin on Dec. 18, 2025. [9]
That matters because:
- A pre-split stock price around $780–$860 now appears around $156–$172, even though the split itself doesn’t change business fundamentals.
- A pre-split analyst target like $1,150 often becomes $230 after adjusting for the split (divide by five).
- Headlines can look confusing if they mix split-adjusted and pre-split figures.
A clean example: Investing.com reported that Stifel lowered its ServiceNow price target to $230 from $1,150 explicitly due to the stock split. [10]
ServiceNow’s AI acquisition spree: Moveworks completed, Veza announced, Armis rumored
Moveworks is officially done (confirmed)
ServiceNow announced on Dec. 15, 2025 that it has completed its acquisition of Moveworks, describing the combination as joining ServiceNow’s “agentic AI and intelligent workflows” with Moveworks’ front-end AI assistant, enterprise search, and a reasoning engine. [11]
This deal matters because Moveworks is positioned as an “AI-native front door” for employees—exactly the kind of interface layer that can drive adoption across IT, HR, and other internal workflows.
Veza strengthens identity governance (announced earlier this month)
In parallel, ServiceNow also agreed to acquire identity security company Veza in a deal reported around $1 billion, with the strategic pitch centered on governing permissions for AI agents at scale. [12]
The pattern Wall Street is weighing
Put those together:
- Moveworks (AI experience layer) — completed [13]
- Veza (identity/permissions governance) — announced [14]
- Armis (device/asset and exposure security) — rumored [15]
The bullish interpretation is that ServiceNow is building a broader AI + security “control tower” for the enterprise.
The skeptical interpretation is that the company is stacking large acquisitions quickly—raising questions about integration risk, financing mix, and whether inorganic growth is starting to substitute for organic expansion.
Partnerships and product momentum: “AI workflows” moving into new domains
Beyond M&A, ServiceNow has continued to push into applied, industry-specific automation.
One example: Everbridge announced that it, ServiceNow, and Ekatra unveiled an Emergency Event Management (EEM) solution designed to help critical infrastructure organizations respond faster to storms and wildfires—connecting Everbridge’s incident/event intelligence with the ServiceNow AI Platform. [16]
Deals like this rarely move a mega-cap stock alone, but they help explain the strategic narrative: ServiceNow is attempting to embed workflows and AI-assisted coordination into more “mission-critical” operational environments.
Analyst forecasts and targets: where Wall Street stands on NOW stock (as of Dec. 22, 2025)
Despite the volatility, analyst sentiment still screens as broadly constructive—though noticeably more divided than earlier in the year.
Fresh note on Dec. 22: BTIG reiterates Buy
Several market feeds reported that BTIG reiterated a Buy rating on ServiceNow on Dec. 22 with a $200 price target (split-adjusted). [17]
The bear flag that amplified the selloff: KeyBanc downgrade
A key accelerant behind the Dec. 15 slide was KeyBanc downgrading ServiceNow to Underweight, with commentary tied to AI disruption and broader concerns about SaaS durability. Barron’s summarized the downgrade as referencing a rising “death of SaaS” narrative and set out KeyBanc’s then-price target at $775 pre-split (about $155 split-adjusted). [18]
A “less negative” shift: Guggenheim upgrades to Neutral
Not all action was bearish. Investing.com reported that Guggenheim upgraded ServiceNow from Sell to Neutral, saying the stock had dropped below its target and pointing to narrative pressure from AI and M&A activity—while still warning there could be further downside. [19]
Consensus forecast snapshot: targets still imply upside
Across common Wall Street consensus trackers, ServiceNow is generally tagged as Strong Buy with average targets in the low-to-mid $220s (split-adjusted), though estimates vary by dataset:
- StockAnalysis shows a consensus Strong Buy with an average price target around $223 (with a wide range of targets). [20]
- TipRanks lists an average target around $227 with a high forecast around $263 and a low around $155 (split-adjusted). [21]
Important context: that “$155 low target” roughly matches where the stock has recently traded after the split—so the market is effectively testing the low end of the published target range in real time.
What the market is watching next: the 4 catalysts that could reset the NOW narrative
1) Confirmation (or collapse) of the Armis talks
Right now, Armis is the largest uncertainty. Reuters’ framing is key: the deal may be announced, but could also fall apart or attract competing bidders. [22]
Any definitive update—announcement, termination, or a materially different price—could move the stock quickly.
2) Integration execution: Moveworks, and potentially Veza
Moveworks is no longer theoretical; it’s now an execution story. ServiceNow is telling investors it can blend agentic AI, enterprise search, and workflow automation into a single “AI-native front door.” [23]
If customer adoption accelerates, it supports the “platform expansion” bull case. If integration friction shows up, it validates the bear case.
3) Earnings timing: late January 2026 expectations
Wall Street calendars currently point to a late-January 2026 window for ServiceNow’s next earnings report (often listed around Jan. 28, 2026, though dates can change until the company confirms). [24]
Given recent volatility, the next results and guidance update could become the next major catalyst.
4) Proof that AI is monetizing—not just demoing
ServiceNow’s AI pitch isn’t new, but investor expectations have risen sharply across enterprise software. Back in October, Reuters reported that ServiceNow raised its full-year subscription revenue outlook, citing demand for AI-powered software. [25]
The market will keep pressing for evidence that AI features are driving durable net-new spend, expansion, and retention—not just keeping pace with competitors.
The bull case vs. bear case for ServiceNow stock heading into 2026
Bull case (why optimists stay engaged)
- Platform gravity: ServiceNow remains deeply embedded in IT and enterprise workflows, creating switching costs and long contract cycles. [26]
- AI control-tower strategy: Moveworks (assistant/search) plus identity governance (Veza) plus potential exposure/device security (Armis) could form a coherent AI-and-security layer across the enterprise. [27]
- Consensus targets imply upside: even after the selloff, many published targets sit well above the current split-adjusted share price. [28]
Bear case (why skeptics think the volatility isn’t over)
- M&A sticker shock and financing concerns: investors may worry about dilution or leverage if deal sizes keep rising.
- Execution risk: combining multiple acquisitions (and products) in rapid succession can slow innovation and distract management.
- AI competition pressure: multiple outlets cited concerns that Microsoft and other giants could compress the “workflow SaaS” moat over time. [29]
Bottom line: ServiceNow stock is trying to find a floor—and a story investors believe
On Dec. 22, 2025, ServiceNow stock is less about a single-day move and more about narrative resolution:
- If the Armis situation becomes clearer (and the market likes the terms), volatility could cool.
- If M&A continues to expand without clear payback, critics will keep pressing the “inorganic growth” argument.
- And if the company can show that its agentic AI strategy translates into measurable subscription acceleration and expansion, the current drawdown could be reframed as a temporary reset rather than a structural break.
For now, NOW remains one of the most closely watched enterprise software names heading into 2026—because few companies sit at the intersection of workflow automation, AI agents, and cybersecurity quite as directly as ServiceNow does. [30]
References
1. www.reuters.com, 2. www.reuters.com, 3. newsroom.servicenow.com, 4. newsroom.servicenow.com, 5. www.reuters.com, 6. www.investopedia.com, 7. www.marketwatch.com, 8. www.investopedia.com, 9. newsroom.servicenow.com, 10. www.investing.com, 11. newsroom.servicenow.com, 12. www.forbes.com, 13. newsroom.servicenow.com, 14. www.forbes.com, 15. www.reuters.com, 16. www.everbridge.com, 17. www.marketbeat.com, 18. www.barrons.com, 19. www.investing.com, 20. stockanalysis.com, 21. www.tipranks.com, 22. www.reuters.com, 23. newsroom.servicenow.com, 24. finance.yahoo.com, 25. www.reuters.com, 26. www.reuters.com, 27. newsroom.servicenow.com, 28. stockanalysis.com, 29. www.barrons.com, 30. www.reuters.com
