ServiceNow, Inc. (NYSE: NOW) is in the spotlight on December 15, 2025, after a sharp selloff that pushed the enterprise software leader to one of its steepest declines in months. The trigger: reports that ServiceNow is in advanced talks to buy IoT/OT cybersecurity firm Armis in a deal that could reach $7 billion, alongside a notable KeyBanc downgrade that amplified an already jittery debate about how AI could reshape (and potentially disrupt) traditional SaaS economics. [1]
Below is a detailed, publication-ready breakdown of today’s biggest headlines, the most important analyst takes, and the most widely cited forecasts for ServiceNow stock as investors recalibrate expectations into 2026.
ServiceNow stock today: a double‑digit slide that dominates the tape
ServiceNow shares were trading around $762 in Monday trading, down roughly 12% on the day (with an intraday low near $761 and high near $849).
Multiple market reports described ServiceNow as the largest decliner in the S&P 500 on Monday, with the stock falling more than 11% and hitting its lowest levels since earlier this year. [2]
What makes this move stand out isn’t only the magnitude. It’s the why: investors appear to be repricing ServiceNow on two simultaneous concerns:
- Deal risk (size, integration, and valuation discipline) tied to the rumored Armis acquisition.
- Narrative risk tied to a prominent analyst downgrade framing a looming “AI vs. SaaS” challenge heading into 2026. [3]
The catalyst: ServiceNow reportedly nears a $7 billion acquisition of Armis
What’s being reported
Reuters, citing a Bloomberg report, said ServiceNow is in advanced talks to acquire Armis in a deal that “may be valued at as much as $7 billion,” with an announcement possible in the coming days—though talks could still fall apart or attract another bidder. [4]
Who is Armis and why does it matter?
Armis is positioned in cybersecurity for connected devices—the fast-growing surface area spanning IT assets, IoT, and operational technology environments. Reuters reported that Armis:
- Raised $435 million in a fundraising round in November, valuing the company at $6.1 billion [5]
- Was founded in 2016 and focuses on securing connected devices in real time [6]
- Serves more than 40% of the Fortune 100 [7]
Investopedia added that Armis is owned by Insight Partners, which acquired it for $1.1 billion in 2020, and that the deal talk could alter Armis’ prior IPO ambitions. [8]
Why the market may be reacting negatively
A $7 billion price tag would make Armis the largest acquisition in ServiceNow’s history by reported value—bigger than the company’s previously announced $2.85 billion agreement to acquire AI developer Moveworks. [9]
MarketWatch’s coverage captured the key fear behind the selloff: that a deal of this size could be read as a signal ServiceNow needs inorganic growth to meet 2026 expectations, potentially distracting from its AI roadmap—an interpretation that tends to pressure high-multiple software stocks. [10]
Analyst reaction on Dec. 15, 2025: downgrade vs. “strategic logic”
Today’s debate isn’t simply “deal good” or “deal bad.” It’s more nuanced: strategic fit versus execution and valuation risk, with AI disruption concerns layered on top.
KeyBanc turns bearish: Underweight and $775 target
Several outlets reported that KeyBanc downgraded ServiceNow to Underweight with a $775 price target, citing rising risks to the SaaS model amid AI disruption and IT employment trends—an argument sometimes framed as a potential “death of SaaS” narrative starting to weigh on 2026 expectations. [11]
This matters because ServiceNow has long been viewed as one of the category’s premium “durable compounders.” When a major sell-side shop questions that durability—especially tied to AI-driven seat reduction or pricing power debates—market sentiment can shift quickly.
RBC stays constructive: Outperform and $1,200 target
On the other side, RBC Capital reiterated an Outperform rating and maintained a $1,200 price target, arguing that software consolidation is likely in an AI-first world and positioning ServiceNow as a potential “consolidator.” [12]
RBC’s note also emphasized how large the rumored deal would be in context, referencing the reported Armis purchase price against ServiceNow’s market capitalization. [13]
Other takes: strategic expansion, but investors want proof
Barron’s summarized a more mixed stance from other analysts: Morgan Stanley framed the rumored Armis deal as a strategic push into operational technology (OT), while others highlighted broader benefits to ServiceNow’s workflow and AI services. [14]
Still, caution has been loud: MarketWatch reported that Bernstein’s Peter Weed saw strategic logic, but also highlighted investor concern about ServiceNow leaning more heavily on acquisitions—and pointed to the sheer magnitude of market value erased during the session as a sign of how intensely investors are reacting to the uncertainty. [15]
The “bigger picture” ServiceNow headlines investors are connecting to today’s selloff
Today’s stock move is also being interpreted through the lens of ServiceNow’s recent security and AI deal-making cadence.
1) ServiceNow’s 5‑for‑1 stock split is imminent
ServiceNow announced that shareholders approved a 5‑for‑1 stock split, with:
- Record date: December 16, 2025
- Distribution: on or about December 17, 2025 (after market close)
- Split-adjusted trading: expected to begin December 18, 2025 [16]
Practical takeaway: if the split occurs as scheduled, a pre-split price near $762 would mechanically translate to roughly $152 split-adjusted (with five times the shares)—without changing the company’s underlying market value.
2) Identity security: ServiceNow’s planned Veza acquisition
Earlier this month, ServiceNow announced plans to acquire identity security company Veza, positioning it as a way to strengthen identity and access controls across applications, data, cloud environments, and AI agents. [17]
Forbes characterized the Veza deal as a reported $1 billion acquisition intended to unify identity governance with workflow automation and govern AI-agent permissions at scale. [18]
3) AI investment: Canada public-sector expansion
ServiceNow also announced a CA$110 million multi-year investment to enable AI adoption across Canada’s public sector, including a new Canada Centre of Excellence and approximately 100 new Canada-based jobs. [19]
4) Moveworks: the earlier $2.85B agentic AI bet
In March, ServiceNow announced an agreement to acquire Moveworks for $2.85 billion (cash and stock), aiming to extend “agentic AI” capabilities across the organization; the company said it expected the deal to close in the second half of 2025, subject to approvals and conditions. [20]
Taken together, investors are asking a fair question on Dec. 15: is ServiceNow building an integrated AI-and-security platform in a disciplined way—or ramping M&A fast enough to raise integration and valuation risk?
ServiceNow stock forecast: what Wall Street price targets imply after today’s drop
Even after today’s slide, many aggregated sell-side snapshots still show a broadly positive consensus—but with a very wide range between bullish and bearish targets.
Consensus: generally “Buy,” but dispersion is growing
StockAnalysis.com lists a consensus “Buy” rating with an average price target around $1,111 (with targets ranging from roughly $724 to $1,300). [21]
TipRanks shows an average price target around $1,154, with a high forecast of $1,315 and a low forecast around the mid‑$700s. [22]
MarketBeat similarly reports a consensus target in the low-to-mid $1,100s, with the low end in the $700s and the high end above $1,300. [23]
How to read these targets on Dec. 15
After a double-digit drop, the “implied upside” embedded in average targets can look unusually large. But investors should treat that upside as a starting point, not a conclusion—especially when the forecast set may not yet fully reflect the latest M&A probability, terms, or integration assumptions.
Fundamental outlook: growth expectations remain strong, but the market is repricing the story
To understand why today’s move stings, it helps to remember that ServiceNow’s 2025 narrative had been about AI-driven demand, strong renewal dynamics, and improving profitability.
Reuters reported in October that ServiceNow raised its full-year subscription revenue forecast, citing demand for AI-powered software, and guided to subscription revenue of roughly $12.84–$12.85 billion, up from prior guidance. [24]
ServiceNow’s own Q3 2025 release reported subscription revenues of $3,299 million (about 21.5% year-over-year growth) and total revenues of $3,407 million (about 22% year-over-year growth). [25]
Meanwhile, Simply Wall St (updated Dec. 15, 2025) summarized analyst-modeled longer-term growth expectations with revenue growth around the mid-teens and earnings growth above 20% annually. [26]
Today’s selloff suggests the market is not necessarily rejecting the idea of growth—it’s questioning how that growth will be achieved (organic vs. inorganic) and whether AI changes the “per-seat” math that often underpins SaaS expansion assumptions. [27]
Key dates and catalysts to watch next for NOW stock
Potential Armis deal timeline
The reporting suggests a deal could be announced within days, but is not finalized. Any official announcement would likely be followed by investor focus on:
- Final purchase price and structure (cash/stock)
- Fit with ServiceNow’s platform and go-to-market plan
- Expected timeline to revenue contribution (and margin impact)
- Regulatory considerations and integration milestones [28]
Stock split: Dec. 18 split-adjusted trading
Because split-adjusted trading is expected to begin December 18, 2025, traders and long-term holders should be ready for quote and option-chain adjustments that can confuse casual observers (“the stock is down 80%!” style misreads). [29]
Next earnings: late January is the market’s base case, but dates vary by source
Several market calendars list Jan. 28, 2026 as the next earnings report date, while some sources show alternative estimates (including early February). Treat this as a “window” until ServiceNow confirms. [30]
Bottom line: ServiceNow’s thesis isn’t broken—but the risk premium just rose
On Dec. 15, 2025, ServiceNow stock is being repriced at the intersection of three themes:
- Security platform expansion (Veza, potential Armis) [31]
- Agentic AI acceleration (Moveworks and broader AI positioning) [32]
- The AI “SaaS disruption” debate, now sharpened by a high-profile downgrade [33]
References
1. www.reuters.com, 2. www.investopedia.com, 3. www.barrons.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.investopedia.com, 9. newsroom.servicenow.com, 10. www.marketwatch.com, 11. www.barrons.com, 12. www.investing.com, 13. www.investing.com, 14. www.barrons.com, 15. www.marketwatch.com, 16. newsroom.servicenow.com, 17. veza.com, 18. www.forbes.com, 19. www.businesswire.com, 20. newsroom.servicenow.com, 21. stockanalysis.com, 22. www.tipranks.com, 23. www.marketbeat.com, 24. www.reuters.com, 25. www.servicenow.com, 26. simplywall.st, 27. www.marketwatch.com, 28. www.reuters.com, 29. newsroom.servicenow.com, 30. www.tipranks.com, 31. www.securityweek.com, 32. newsroom.servicenow.com, 33. www.barrons.com
