NEW YORK, December 31, 2025, 19:07 ET — After-hours
- ServiceNow shares fell 0.7% in after-hours trading to $153.19.
- A Jan. 1-effective CEO contract amendment outlines possible CEO/co-CEO and chair roles through at least 2030.
- Investors continue to weigh ServiceNow’s planned $7.75 billion all-cash acquisition of cybersecurity firm Armis.
ServiceNow shares fell 0.7% to $153.19 in after-hours trading on Wednesday, which takes place outside the regular 9:30 a.m. to 4 p.m. ET session.
The stock’s late move followed a downbeat finish for Wall Street on the final trading day of 2025. The S&P 500 fell 0.7% and the Nasdaq dropped 0.8% in thin trading, with technology stocks the biggest drag, while the 10-year Treasury yield rose to 4.17%, AP reported. 1
The timing matters because U.S. stock and bond markets are closed on Thursday for New Year’s Day, a pause that can curb liquidity and leave company-specific catalysts to drive the next move when trading resumes. 2
A regulatory filing showed ServiceNow amended Chief Executive Bill McDermott’s employment agreement, effective Jan. 1, 2026, extending his service commitment through at least Dec. 31, 2030. The filing said he may serve as CEO or co-CEO, or move into executive or non-executive chairman roles at the board’s discretion, and it also updates CEO severance terms, including benefits tied to a change in control. 3
ServiceNow last week agreed to buy cyber exposure management firm Armis for about $7.75 billion in cash and expects to fund the transaction with a combination of cash on hand and debt, the company said. The deal is expected to close in the second half of 2026. “ServiceNow is building the security platform of tomorrow,” said Amit Zavery, the company’s president and chief operating officer. 4
The Armis announcement initially pushed the stock down as investors worried about ServiceNow’s acquisition spree, Reuters reported, against a backdrop of cyberattacks hitting companies from Microsoft to UnitedHealth. “Our security stack, with the acquisition of Armis, is very well positioned, so we won’t need to do any more M&A in security space,” CFO Gina Mastantuono told Reuters. Reuters also said ServiceNow has recently bought security firm Veza, AI company Moveworks and sales automation platform Logik.ai. 5
The Armis purchase would broaden ServiceNow’s security workflow push as customers try to map vulnerable devices and automate responses across IT and operational technology — OT, meaning industrial systems that run factories, utilities, and other physical infrastructure. Investors will watch how much leverage the company takes on and how quickly it can turn the deal into revenue growth without pressuring margins.
The McDermott agreement amendment adds a governance angle that can matter for valuation in large-cap software, where leadership continuity and succession planning often influence sales execution and customer confidence. Any signal of a shift toward a co-CEO model would likely draw scrutiny on roles and accountability.
Rate expectations remain a swing factor for high-multiple software stocks. The Federal Reserve’s next policy meeting is scheduled for Jan. 27-28, according to its calendar. 6
ServiceNow sells subscription software that helps large organizations manage IT services and automate business workflows, and it has been expanding into security and risk tools alongside its broader AI push. 7
With markets closed Thursday, the next read-through for ServiceNow is likely to hinge on any fresh signals around leadership structure and the timetable and financing of the Armis deal when liquidity returns.
