All figures and news are current as of December 11, 2025.
ServiceNow stock in December 2025: where things stand
ServiceNow, Inc. (NYSE: NOW) is closing out 2025 as one of the most closely watched large‑cap AI and workflow software names.
As of the latest trading session on December 11, 2025, ServiceNow stock is changing hands around $870 per share, giving the company a market value in the high‑$170 billion range. [1]
The share price has:
- Pulled back sharply from its 2025 peak near just under $1,200 per share in late January [2]
- Traded mostly in the low‑ to mid‑$800s since late November – it closed near $820 on November 21 and has since climbed into the mid‑$800s and above. [3]
Even after the pullback, ServiceNow still trades at a premium valuation: sources tracking the stock put its trailing or current P/E ratio well above the broader market, with a forward P/E around the low‑40s according to recent analyst summaries. [4]
That premium rests on a familiar bull case: strong double‑digit subscription revenue growth, expanding AI capabilities and high margins – all of which were underscored in the company’s latest quarterly results and a flurry of strategic announcements since November 21, 2025.
From Q3 2025 earnings beat to late‑November volatility
Although your requested window starts on November 21, 2025, the backdrop is ServiceNow’s third‑quarter 2025 report on October 29.
In Q3 2025, ServiceNow delivered:
- Total revenue of about $3.4 billion, up roughly 22% year over year
- Subscription revenue of about $3.3 billion, growing around 21% year over year and just over 20% in constant currency [5]
- Adjusted earnings per share (EPS) of $4.82, up almost 30% versus the prior year, beating Wall Street estimates [6]
- Current remaining performance obligations (CRPO) – a key forward‑looking metric – up about 21% to around $11.35 billion [7]
At the same time, ServiceNow’s Board authorized a 5‑for‑1 stock split, subject to shareholder approval at a special meeting scheduled for December 5, 2025. [8]
Despite the beat, ServiceNow’s share price sold off in the following weeks. By November 24, coverage from Yahoo Finance and others noted that NOW stock was down more than 10% since the Q3 release, even while analysts continued to highlight it as one of the stronger cloud software stories. [9]
Just before your window, a detailed valuation note from Trefis on November 20, 2025 argued that the stock was roughly 35% cheaper than a year earlier, even though fundamentals had remained robust:
- Recent operating cash flow margin near 38%
- Last‑twelve‑month operating margin around 14%
- Revenue growth around 21% over the last year and more than 22% averaged over three years
- A price‑to‑sales multiple of about 13.4, estimated to be roughly 35% below its level a year before. [10]
On November 21, 2025, MarketBeat flagged a modest rebound: ServiceNow shares rose about 1.5% to roughly $812, on slightly lighter‑than‑average volume. The piece also reiterated that the market was already looking ahead to the upcoming 5‑for‑1 split and pointed to an average analyst price target near $1,160, with some firms forecasting up to $1,300 per share. [11]
That brings us directly into your requested time frame.
Key developments since November 21, 2025
1. Stock performance: a rebound, but still below the highs
From late November into early December:
- ServiceNow shares hovered in the low‑$800s, with daily closes in the $812–$831 range around November 24–26. [12]
- A MarketWatch recap of trading on Friday, December 5, 2025 noted that NOW closed at about $854, up 1.85% on the day and logging its sixth consecutive daily gain. However, it still lagged peers like Salesforce, which rose over 5% that session. [13]
- Even after the rally, ServiceNow remained almost 30% below its 52‑week high just under $1,200, underscoring how far sentiment had swung since January. [14]
In other words, the price has improved since November 21, but the stock still trades well off its 2025 peak, a key theme in recent analyst and media coverage.
2. Shareholders approve a 5‑for‑1 stock split
The most visible corporate action in this period is the formal approval and scheduling of ServiceNow’s 5‑for‑1 stock split.
- On October 29, 2025, along with Q3 earnings, ServiceNow announced that its Board had approved a five‑for‑one split, contingent on shareholder approval. [15]
- At the special shareholder meeting on December 5, 2025, investors voted overwhelmingly in favor of the split and an amended charter to implement it. [16]
- According to the company and the Options Clearing Corporation (OCC):
- Record date: December 16, 2025
- Payable date: after the close on or around December 17, 2025
- Ex‑distribution / first day of split‑adjusted trading: December 18, 2025 [17]
Shareholders of record on December 16 will receive four additional shares for each share held, taking their share count to five times the current number while the stock price adjusts downward accordingly.
Options on NOW will also be adjusted at the ex‑date so that the economic value of open contracts is preserved. [18]
Financially, the split does not change ServiceNow’s intrinsic value – market capitalization and earnings are simply spread over more shares. However, recent analysis from Yahoo Finance and others has framed the move as:
- A way to lower the nominal share price, making it easier for smaller investors and employees to buy whole shares
- A potential liquidity booster, increasing trading volume and options activity
- A symbolic marker that ServiceNow sees its long‑term growth story as intact, even after the 2025 pullback. [19]
Some commentaries also warn that stock splits don’t fix valuations: if the shares remain expensive relative to earnings and cash flow, the split may simply make speculative trading easier while fundamentals catch up.
3. Doubling down on identity security: the Veza acquisition
A second major storyline since late November is ServiceNow’s move into identity security for both humans and AI agents via the planned acquisition of Veza.
On December 2, 2025, ServiceNow announced an agreement to acquire Veza, an AI‑native identity security platform. The company described the deal as a way to:
- Add deep, cross‑platform visibility into “who and what has access” across applications, data, systems and AI environments
- Provide a consistent, auditable layer of access governance across the enterprise
- Create a trusted identity foundation for agentic AI, ensuring autonomous agents operate within policy and compliance boundaries. [20]
Security industry outlets estimate the deal value at around $1 billion, noting that Veza was recently valued above $800 million after its Series D round. [21]
Coverage from industry and tech press has highlighted several implications:
- Integration into ServiceNow’s AI Control Tower: Veza’s “Access Graph” – a patented way of mapping relationships between identities and permissions – is expected to plug into ServiceNow’s AI Control Tower, giving security teams a unified view of both human and machine access. [22]
- Non‑human identity (NHI) governance: Analysts emphasize that as enterprises deploy more AI agents, bots and machine identities, managing their access becomes just as critical as human sign‑ons. The Veza deal is being read as a bet that identity governance will be central to AI adoption. [23]
- Competitive positioning: By owning its own identity security layer rather than relying purely on partners, ServiceNow strengthens the “platform” narrative against security and workflow rivals.
For investors, this acquisition reinforces the idea that ServiceNow wants to be not just an AI platform, but an AI “control tower” managing workflows, data and who or what is allowed to act inside those systems. [24]
4. Big bet on public‑sector AI: CA$110 million Canada investment
On December 8, 2025, ServiceNow announced a major multi‑year CA$110 million investment aimed at accelerating AI adoption across Canada’s public sector. [25]
Key elements of the commitment include:
- Establishing a Canada Centre of Excellence focused on AI, workflow automation and public‑sector modernization
- Creating about 100 new high‑skilled jobs in Canada
- Building Canadian‑hosted, AI‑ready digital infrastructure with advanced data residency, security and operational controls – a crucial requirement for government workloads
Commentary from investment‑focused outlets has framed this as:
- A way to deepen ServiceNow’s foothold in federal and provincial agencies that are under pressure to modernize services
- A potential long‑duration revenue driver, as public‑sector digital transformations tend to be large, multi‑year projects
- A strategic move in the global race to secure sovereign AI infrastructure, where governments increasingly insist on local hosting and strict data controls. [26]
Given that some prior investor concern around ServiceNow centered on slower federal business, this kind of long‑term public‑sector bet is notable for the stock’s narrative. [27]
5. AI platform momentum: from “any model” to “AI control tower”
Throughout 2025 – and referenced repeatedly in late‑year analysis – ServiceNow has repositioned itself as an AI‑native workflow platform:
- In May 2025, ServiceNow unveiled a reimagined ServiceNow AI Platform, pitched as a way to put “any AI, any agent, any model” to work across the enterprise, with deep integrations to partners such as Microsoft, NVIDIA, Google and Oracle. [28]
- The company’s AI Experience platform, announced in early October, introduced a consolidated conversational interface and new agentic AI workflows, while financial commentary noted it did not radically change near‑term revenue drivers but strengthened the longer‑term AI thesis. [29]
- An October blog post on ServiceNow’s unified AI platform spelled out the idea of a single AI layer orchestrating workflows across IT, HR, finance, operations and customer service. [30]
- Barron’s and other market outlets have argued that ServiceNow is well placed to benefit from the AI‑powered software wave, particularly due to its pricing model that combines traditional licenses with emerging AI token‑based usage fees. [31]
At the same time, some investor commentary has noted a disconnect between growth and share price earlier in 2025, pointing out that strong subscription growth was paired with a very rich earnings multiple (well into triple digits at one point), which likely contributed to this year’s volatility. [32]
Taken together with the Veza acquisition and the Canada AI investment, the late‑2025 news flow reinforces the narrative that ServiceNow aims to be:
- The AI control tower orchestrating business processes
- The identity and access brain governing both humans and AI agents
- A key vendor for sovereign and public‑sector AI deployments
Those storylines are central to how analysts frame the stock’s long‑term potential.
6. What Wall Street is saying now: ratings and price targets
Since November 21, 2025, multiple updated analyst and aggregator reports have helped shape the market’s view of NOW stock:
- MarketBeat tracks around 38 analysts covering ServiceNow. Their latest summary shows:
- 1 sell, 5 holds, 31 buys and 1 strong buy
- A consensus rating of “Moderate Buy”
- Average 12‑month upside a bit above 30%, based on their aggregated price targets. [33]
- StockAnalysis lists roughly 30 analysts with a “Strong Buy” consensus and an average price target near $1,120, implying about 29–31% upside from current levels. [34]
- TipRanks shows an average 12‑month price target around $1,150, implying nearly 35% upside, and similarly skewed buy ratings. [35]
- A fresh analysis piece published today highlights that analysts collectively see roughly 34% upside, with 41 buy ratings, 4 holds and just 1 sell, and notes a forward P/E near 42x – high, but more reasonable given expected earnings growth. [36]
In summary, across major data providers, ServiceNow’s 12‑month price targets cluster between roughly $1,120 and $1,160, implying 30–35% upside from the current $870 area – contingent on the company sustaining strong double‑digit growth and executing on its AI and security roadmap.
7. Valuation debates: still expensive, but no longer “priced for perfection”
Even after this year’s pullback, ServiceNow is not a cheap stock:
- Earlier in 2025, some investors flagged that NOW was trading at over 100x earnings, despite strong revenue growth – raising concerns that even minor disappointments could trigger sharp drawdowns. [37]
- The November Trefis analysis emphasized that while the stock still carries a premium price‑to‑sales multiple (~13x), that multiple is notably lower than a year ago, when the shares were more than a third higher. [38]
- Current summaries, like the DirectorsTalk piece and brokerage forecasts, place the forward P/E in the low‑40s, more in line with a high‑growth software leader but still well above the broader market. [39]
On the positive side of the ledger:
- Gross margins are robust – Q3 2025 gross profit was around $2.6 billion, implying software‑level economics. [40]
- Operating cash flow margins near 38% and solid double‑digit operating margins suggest that ServiceNow converts growth into real cash. [41]
The consensus view in late‑2025 research:
ServiceNow is no longer priced for perfection, but it is still a premium stock that requires continued high growth and margin discipline to justify its multiples.
Investment thesis going into 2026
Putting the post‑November 21 news together, investors weighing ServiceNow now are essentially asking three questions:
1. Does the 5‑for‑1 stock split change the story?
Fundamentally, no: the split reshuffles the number of shares and the per‑share price, but not revenue, earnings or cash flow.
However, it may matter at the margin:
- A lower share price post‑split can broaden retail participation and make employee equity programs more psychologically attractive.
- Options markets often see higher activity around splits, which can amplify short‑term volatility.
- The fact that management and shareholders are comfortable splitting the stock after a 25–30% drawdown signals confidence in the long‑term trajectory rather than a defensive posture. [42]
2. Are AI and security catalysts large enough to sustain growth?
The late‑2025 announcements support a multi‑year AI‑driven growth story:
- Q3 2025 results show subscription revenue still growing above 20% despite the company’s scale. [43]
- The Veza acquisition pushes ServiceNow deeper into identity and access governance, a domain that will only become more critical as enterprises adopt autonomous agents and AI copilots at scale. [44]
- The CA$110 million Canada investment is a concrete example of how ServiceNow is trying to lock in public‑sector AI workloads with sovereign infrastructure and in‑country expertise. [45]
- Earlier AI platform moves and partnerships with major chip and cloud players reinforce the notion that ServiceNow wants to be the orchestration layer for AI‑powered work rather than just another tool. [46]
If management executes, these catalysts could support the 30%‑plus upside embedded in current analyst targets.
3. What are the main risks?
Even with the positive news flow, investors should keep a few risks in mind:
- Valuation risk: Premium multiples mean that any slowdown in subscription growth, CRPO, or AI upsell could trigger another round of multiple compression. [47]
- Macro and IT budget pressure: Enterprise and public‑sector customers could delay large projects in a weaker macro environment, hitting new bookings.
- Integration and execution: ServiceNow must successfully integrate Veza, continue to roll out AI products that customers actually adopt, and manage complex, long‑cycle government projects like the Canada initiative. [48]
- Competitive intensity: Rivals like Salesforce and Microsoft are equally aggressive in AI, and the recent relative underperformance versus peers highlighted that investors are watching relative growth and margins, not just absolute numbers. [49]
Bottom line: Is ServiceNow stock attractive after November 21’s news?
Since November 21, 2025, ServiceNow’s story has evolved along three major lines:
- Corporate actions:
- The 5‑for‑1 stock split has moved from Board authorization to formal shareholder approval, with split‑adjusted trading set for December 18. This doesn’t change fundamentals, but it does reset the optics and may boost liquidity.
- Strategic moves in AI and security:
- The planned Veza acquisition and the CA$110 million Canada AI investment deepen ServiceNow’s role as an AI and security platform for large enterprises and governments – especially around governing both human and non‑human identities.
- Analyst conviction despite volatility:
- Even after a double‑digit decline post‑Q3, most Wall Street analysts still see ServiceNow as a high‑quality growth compounder, with average price targets 30–35% above today’s level and overwhelmingly positive ratings.
For potential investors, the takeaway is nuanced:
- If you believe that enterprise AI adoption, identity security and public‑sector modernization will keep driving high‑teens to low‑20s revenue growth for years, ServiceNow’s current pullback and upcoming split may look like a long‑term opportunity, consistent with many analyst forecasts. [50]
- If you are more cautious about valuations, macro risk or competitive dynamics, the stock’s still‑elevated multiples and high expectations may argue for patience or a more diversified approach to AI‑exposed software.
References
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