December 16, 2025 — ServiceNow, Inc. (NYSE: NOW) is back in the spotlight after a dramatic selloff tied to reported acquisition talks and a fresh wave of Wall Street commentary. On Tuesday, the stock steadied and rebounded after Monday’s steep drop, while investors also keep an eye on a separate, highly practical catalyst: today is the record date for ServiceNow’s upcoming 5-for-1 stock split. [1]
As of the latest available market data on Dec. 16, ServiceNow shares were trading around $780 (up about 2% on the session), after Monday’s plunge.
What’s driving ServiceNow stock on Dec. 16, 2025
Here are the key forces moving NOW stock right now:
- Acquisition speculation: Reuters reports ServiceNow is in advanced talks to buy cybersecurity firm Armis in a deal valued as high as $7 billion, citing Bloomberg reporting. [2]
- Analyst reactions: Several firms are reiterating or adjusting targets; at least one major downgrade helped intensify Monday’s move, while other analysts say the selloff looks overdone. [3]
- Stock split mechanics:Dec. 16 is the record date for the 5-for-1 split; trading is expected to begin on a split-adjusted basis on Dec. 18. [4]
ServiceNow and Armis: what the market knows so far
According to Reuters, ServiceNow is in advanced talks to acquire Armis, a cybersecurity startup that had been eyeing an IPO, in a deal that “may be valued” at up to $7 billion. The report also notes that a deal could be announced in the coming days—but that talks could still fall apart or another bidder could emerge. [5]
Reuters adds several important data points about Armis that help explain why the rumor has moved the stock so sharply:
- Armis raised $435 million in a fundraising round in November, valuing the company at $6.1 billion. [6]
- Armis “secures connected devices in real time” and serves more than 40% of the Fortune 100, per Reuters. [7]
Separately, analyst commentary circulating in the market emphasizes Armis’ exposure-management focus across IT and operational environments. A Morgan Stanley note summarized by Investing.com describes Armis as operating across IT, OT and IoMT and highlights reported scale (including more than $300 million in annual recurring revenue as of August 2025, plus customer penetration including “60% of the Fortune 10,” per that report). [8]
Why investors initially sold the news
A $7 billion price tag is large enough to trigger the two classic “big deal” worries:
- Valuation/dilution risk: Paying a premium for growth can compress returns if synergies don’t materialize quickly.
- Signal risk: Investors sometimes read large M&A as a sign management is leaning more on inorganic growth, especially if the core business is already expected to deliver strong organic expansion.
MarketWatch’s roundup of the move captured this mood, noting concerns that the deal could imply ServiceNow may struggle to hit longer-term organic growth expectations and could lose focus on generative AI opportunities. [9]
The price action: from “worst day in months” to a steadier Tuesday
ServiceNow shares dropped more than 11% on Monday, making it one of the biggest decliners in major indexes during the session, after the acquisition report gained traction. [10]
By Tuesday, the tone shifted from panic to positioning. Barron’s noted the stock stabilized after Monday’s selloff, with attention on both the rumored Armis deal and the analyst downgrade that landed around the same time. [11]
In market data from Dec. 16, ServiceNow shares traded around $780 (up about 2% on the day at the time of the snapshot), suggesting at least some dip-buying and short-covering after the slide.
Wall Street price targets and ratings: what changed this week
The latest wave of notes and headlines shows a market trying to reprice NOW stock around two questions: Is the Armis deal real? and If so, is it strategically worth the cost?
DA Davidson: target lowered to $1,100, but “Buy” maintained
DA Davidson reduced its price target to $1,100 while reiterating a Buy rating. The firm flagged the reported Armis valuation as high—about 23x annual recurring revenue (ARR)—but argued Armis could be an attractive strategic fit for ServiceNow’s expanding security portfolio. DA Davidson also characterized the roughly 11% selloff as “overdone.” [12]
Citizens: $1,300 target maintained, calls the stock oversold
Citizens maintained a Market Outperform rating and a $1,300 price target, describing the move as creating a sizable upside opportunity and noting oversold conditions (via RSI) after the drop. Citizens also framed the recent volatility against broader performance: it cited ServiceNow stock down 28% year to date, versus a 15% gain for the Russell 3000 index over the same period. [13]
RBC Capital: reiterates Outperform, $1,200 target
RBC reiterated an Outperform rating with a $1,200 target, describing ServiceNow as a potential consolidator as enterprise software stacks evolve in an AI-first environment, while acknowledging the deal is still at the “reported discussions” stage. [14]
Other notable actions in the mix: Guggenheim and Mizuho headlines
Market headlines also pointed to Guggenheim upgrading ServiceNow to Neutral from Sell after the stock fell, and Mizuho lowering its price target to $1,050 from $1,150 while maintaining an Outperform rating (as reported via MT Newswires/MarketScreener headlines). [15]
The consensus view: still bullish overall, despite the shock
Across common consensus trackers, ServiceNow remains broadly rated Buy/Strong Buy, with average targets well above the post-selloff price—though the exact figures vary by dataset and analyst set:
- MarketScreener shows an average target of about $1,153 (46 analysts) and a “Buy” consensus. [16]
- MarketBeat lists a consensus price target around $1,137.58. [17]
- StockAnalysis shows an average target around $1,124 with a “Strong Buy” consensus. [18]
With the stock near $780, targets in the $1,100–$1,300 zone imply large upside on paper—roughly 40% to 65%+—but those forecasts assume no major deterioration in growth, margins, or competitive position, and (importantly) they don’t price in execution risk from large acquisitions. [19]
The 5-for-1 stock split: what happens after the Dec. 16 record date
ServiceNow’s 5-for-1 stock split is no longer just a headline—it’s entering the operational window that affects portfolios, orders, and options.
ServiceNow has said:
- Record date: December 16, 2025
- Distribution: after market close on or about December 17, 2025
- Split-adjusted trading expected:December 18, 2025 [20]
What this means in plain English
If you are a shareholder of record as of today, you are slated to receive four additional shares for each share held (turning 1 share into 5). The stock price will adjust accordingly when split-adjusted trading begins. [21]
At a price around $780 pre-split, a purely mechanical split would imply a post-split reference price around one-fifth of that level (with market moves, spreads, and opening dynamics still determining the real print). [22]
Options traders: OCC contract adjustments
The Options Clearing Corporation (OCC) issued an information memo stating that ServiceNow options will be adjusted effective Dec. 18, 2025, and reiterating key dates (record date Dec. 16, payable date Dec. 17, ex-date Dec. 18). [23]
Bigger picture: ServiceNow is building an AI + security expansion story
Part of what makes the Armis rumor so market-moving is that it fits into a broader, very real strategic pattern in ServiceNow’s 2025 playbook.
Moveworks acquisition completed (Dec. 15)
ServiceNow announced it completed its acquisition of Moveworks on Dec. 15, 2025, pitching the combination as strengthening “agentic AI,” intelligent workflows, and enterprise search to create a more advanced AI platform for work. [24]
Veza acquisition plan (announced Dec. 2) expands identity security
Earlier this month, ServiceNow announced its intent to acquire Veza, an identity security company, emphasizing identity governance across applications, data, cloud environments, and even AI agents, and positioning it as part of a broader push to secure agentic AI at scale. [25]
Canada public sector investment (CA$110 million)
ServiceNow also announced a CA$110 million multi-year investment to support AI adoption across Canada’s public sector, including the creation of a Canada Centre of Excellence and about 100 new Canada-based jobs. [26]
Put together, the narrative is clearer: ServiceNow isn’t only selling workflow software anymore. It’s trying to become a broader platform—an “AI control tower” plus an expanding set of security and governance capabilities. [27]
What investors are watching next
With NOW stock swinging hard into mid-December, the next catalysts are relatively defined:
- Confirmation (or collapse) of Armis talks: Reuters explicitly notes the talks could still fall apart, and neither company responded to comment requests at the time of publication. [28]
- If a deal is announced: terms and financing: Investors will focus on structure (cash vs. stock), integration timeline, and any margin or growth implications. [29]
- Split-adjusted trading on Dec. 18: This can change liquidity dynamics and retail accessibility, even though it doesn’t change fundamentals. [30]
- Execution on the AI roadmap post-Moveworks: ServiceNow is explicitly framing Moveworks as a major step toward an “AI-native” employee engagement front door—investors will want to see adoption and monetization. [31]
Bottom line
ServiceNow stock’s story on Dec. 16, 2025 is a high-stakes mix of M&A speculation, analyst repricing, and real corporate-action mechanics (the stock split record date). Reuters’ reporting that ServiceNow is in advanced talks to buy Armis for up to $7 billion set off Monday’s sharp drop, while Tuesday’s steadier trade suggests investors are reassessing whether the move is strategic expansion—or an expensive distraction. [32]
Meanwhile, Wall Street’s forward view remains broadly constructive—many price targets still sit well above the current share price—but this week is a reminder that for mega-cap software names, execution risk (and the market’s perception of it) can matter as much as growth. [33]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.investors.com, 4. newsroom.servicenow.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.investing.com, 9. www.marketwatch.com, 10. www.investopedia.com, 11. www.barrons.com, 12. www.investing.com, 13. www.investing.com, 14. za.investing.com, 15. www.marketscreener.com, 16. www.marketscreener.com, 17. www.marketbeat.com, 18. stockanalysis.com, 19. www.investing.com, 20. newsroom.servicenow.com, 21. newsroom.servicenow.com, 22. newsroom.servicenow.com, 23. infomemo.theocc.com, 24. newsroom.servicenow.com, 25. newsroom.servicenow.com, 26. www.businesswire.com, 27. newsroom.servicenow.com, 28. www.reuters.com, 29. www.reuters.com, 30. newsroom.servicenow.com, 31. newsroom.servicenow.com, 32. www.reuters.com, 33. www.marketscreener.com
