Updated: December 4, 2025
ServiceNow, Inc. (NYSE: NOW) closed Thursday, December 4, 2025 at $834.02, edging up 0.13% on the day. That leaves the AI‑driven workflow platform about 30% below its 2025 high near $1,198 and roughly 23% above its April low around $679. [1]
The calm price action comes at a busy moment for the story: a planned 5‑for‑1 stock split, a planned acquisition of identity‑security specialist Veza, and ongoing debate over whether ServiceNow’s premium valuation still makes sense after a choppy year for high‑growth software. [2]
Below is a deep dive into today’s price, the latest news, and how Wall Street and quant models now see ServiceNow stock heading into 2026 and beyond.
ServiceNow (NOW) Stock Snapshot on December 4, 2025
Key price and trading metrics
- Close (Dec 4, 2025): $834.02
- Daily move: +0.13%
- Intraday range: $830.69 – $845.93
- Volume: ~653,000 shares [3]
52‑week context
- 52‑week high: $1,198.09 (January 28, 2025)
- 52‑week low: $678.66 (April 7, 2025)
- Current price is ~30% below the high and ~23% above the low, underscoring how far the stock has fallen from early‑year optimism while still well off the bottom. [4]
Valuation profile (approximate, pre‑split)
MarketBeat’s snapshot of ServiceNow shows: [5]
- Market cap: ≈ $171.5 billion
- Trailing P/E: ~100
- PEG ratio: ~4.1
- Beta: ~0.97
- 50‑day moving average: ~$885
- 200‑day moving average: ~$934
The combination—triple‑digit P/E, strong growth, and near‑market beta—captures the core tension around NOW: high expectations priced into a stock that has nonetheless underperformed its 2025 highs and, according to some commentators, lagged the Nasdaq’s broader AI rally. [6]
Veza Acquisition: Making AI Workflows Safer and More Governable
The biggest fresh strategic headline around ServiceNow this week is its agreement to acquire Veza, a privately held identity security company.
What Veza does
Veza’s platform focuses on data access governance. Its “Access Graph” maps which human and machine identities can access what data, apps and infrastructure across SaaS, cloud and on‑prem systems. [7]
Dark Reading and SecurityWeek note that Veza is particularly strong in governing non‑human identities—service accounts, workloads, microservices and AI agents—where traditional identity tools have often struggled. [8]
Why ServiceNow wants it
ServiceNow plans to fold Veza into its Security Operations, Risk & Compliance and AI Control Tower offerings, giving customers a more complete picture of who (or what) can touch sensitive data and workflows. [9]
Key strategic angles:
- AI safety & governance: Management has been emphasizing that AI adoption is now about controlling who AI agents are, what they can access and how their actions are audited. Veza’s access graph fits cleanly into that mission. [10]
- Identity sprawl risk: As enterprises spin up thousands of bots, scripts and agentic workflows on ServiceNow, identity sprawl can become a security problem. Veza is designed to help rein that in. [11]
- Expanding the security business: ServiceNow’s security and risk portfolio recently crossed the $1 billion annual contract value (ACV) mark, and analysts see Veza as a way to deepen that line of business with higher‑value AI‑centric features. [12]
Terms of the deal were not disclosed by the companies, but MarketBeat and other coverage describe it as “over $1 billion”, placing it alongside Moveworks and Logik.io as another sizable bolt‑on in ServiceNow’s AI acquisition “shopping spree.” [13]
Zacks’ latest note on the deal frames Veza as a portfolio enhancer that should strengthen ServiceNow’s security story, while cautioning that it won’t erase near‑term headwinds from a soft macro environment and federal budget uncertainty. [14]
Q3 2025 Earnings: Strong Fundamentals Underneath a Wobbly Chart
Even as the stock trades well below its highs, Q3 2025 remains a clear bright spot in the fundamental story.
Headline numbers
For the quarter ended September 30, 2025, ServiceNow reported: [15]
- Subscription revenue: $3.299 billion
- +21.5% year over year (20.5% in constant currency)
- Total revenue: $3.407 billion
- +22% year over year (20.5% in constant currency)
- Current RPO (cRPO): $11.35 billion, +21%
- Total RPO: $24.3 billion, +24%
On the profitability side:
- Non‑GAAP operating margin: ~33.5%, up 230 basis points
- Free cash flow margin: ~17.5%, with free cash flow of about $592 million
- Non‑GAAP EPS: $4.82, beating estimates by around $0.60 per share [16]
Investors.com and other outlets characterized the quarter as “crushing estimates”, with particularly strong large‑deal activity—over 100 net‑new transactions above $1 million in ACV and 553 customers now above $5 million in ACV. [17]
AI as the growth engine
ServiceNow’s management continues to lean hard into AI:
- AI‑driven offerings like Now Assist, Workflow Data Fabric and RaptorDB are on pace to generate more than $500 million in AI‑related ACV in 2025, with a target to exceed $1 billion in 2026. [18]
- The company said AI Control Tower deal volume more than quadrupled in Q3, and internal “ServiceNow‑for‑NOW” usage means roughly 90% of its own IT, HR and customer‑service processes are now handled by AI agents—a proof‑point it uses in sales conversations. [19]
Analysts at MarketBeat and others highlight the combination of 20%+ revenue growth, expanding margins and rising AI monetization as a core reason they still see meaningful upside in the stock despite recent volatility. [20]
Guidance: Still upbeat, but federal cloud over Q4
ServiceNow raised its full‑year 2025 guidance, now expecting: [21]
- Subscription revenue: $12.835–$12.845 billion
- Free cash flow margin: about 34%, implying ~250 bps of expansion versus 2024
For Q4 2025, the company guided to:
- Subscription revenue: $3.420–$3.430 billion (about 19.5% YoY growth)
- cRPO growth: around 23%
However, management explicitly flagged U.S. federal budget uncertainty and the recent government shutdown as risks to near‑term deal timing, especially in the public sector, even as federal remained a relative bright spot in Q3. [22]
5‑for‑1 Stock Split: What It Means for NOW
Alongside Q3 results, ServiceNow’s board approved a 5‑for‑1 forward stock split of its common stock. [23]
Mechanics and timing
- The split requires shareholder approval via an amended and restated certificate of incorporation, to be voted on at a virtual special meeting on December 5, 2025. [24]
- If approved, each existing share would convert into five shares, with a proportionate increase in authorized share count.
- MarketBeat’s insider‑activity coverage suggests the company expects new shares to be distributed after the close on December 4 and trading on a split‑adjusted basis to begin around December 5, though official timing will depend on the actual execution schedule. [25]
Crucially, a stock split does not change the company’s intrinsic value: market cap should remain roughly the same, but the per‑share price would drop to about one‑fifth of its prior level, and share count would quintuple.
Why split at all?
MarketWatch and Nasdaq highlight several motivations: [26]
- At above $900 before the post‑earnings pullback, ServiceNow was one of the highest‑priced names in the S&P 500, which can deter smaller investors and complicate employee equity programs.
- A lower nominal price can make employee stock compensation and fractional investing more accessible.
- Management is also sending a signal of confidence: splits are often interpreted as a sign that leadership expects long‑term growth to justify a higher share count.
At the same time, analysts caution that a split alone does not change fundamentals and can sometimes attract short‑term speculative interest without resolving underlying valuation debates. [27]
Insider Selling: Routine, Not a Red Flag (So Far)
Recent SEC filings have drawn some attention, but the scale of insider selling remains modest relative to ServiceNow’s overall float.
CFO sale
- On November 28, 2025, CFO Gina Mastantuono sold 417 shares at an average price of $808, for proceeds of $336,936.
- The sale reduced her stake by about 3.2%, and she still owns 12,643 shares, valued at roughly $10.2 million at recent prices. [28]
MarketBeat notes that insider trading screens now show “insider selling”, but in context this looks like portfolio diversification rather than a major vote of no confidence.
Director sale
- Director Lawrence Jackson sold 265 shares at $810.22, totalling about $214,708, and now holds 323 shares. [29]
The same Investing.com piece that flagged Jackson’s sale also recaps bullish news—Veza, deeper integration with Figma, and an expanded partnership with NTT DATA—and notes that DA Davidson reiterated a Buy rating on ServiceNow, while BMO Capital trimmed its price target but maintained an Outperform rating. [30]
Given that over 207 million shares of common stock are outstanding, these insider transactions are effectively rounding errors from a float perspective. [31]
Wall Street Forecasts: High‑Quality Compounder at a Premium Price
Despite the drawdown from 2025 highs, sell‑side analysts remain broadly positive on ServiceNow stock—though they are more openly wrestling with valuation risk.
12‑month price targets
Across major aggregators, the consensus 12‑month target clusters in the $1,120–$1,200 range:
- MarketBeat: average target $1,149.67, implying ~37–38% upside from around $835. Rating: “Moderate Buy” based on roughly 38 analyst ratings. [32]
- StockAnalysis: about 50 covering analysts, with an average target around $1,122 and a range from roughly $724 to $1,300. [33]
- Other screeners summarized by TS2 Tech (Barchart, TradingView, Artificall) show aggregated targets between $1,150 and $1,200, also implying roughly 40–45% upside. TS2 Tech
A handful of recent actions illustrate the spread:
- TD Cowen, UBS and Citi each maintain Strong Buy / Buy ratings with targets between $1,150 and $1,253. [34]
- Macquarie initiated coverage with a Hold/Neutral rating and an $860 target, only slightly above current levels. [35]
- Zacks recently cut its rating from “Strong Buy” to “Hold”, flagging valuation and softer near‑term estimate revisions. [36]
Growth and earnings expectations
StockAnalysis’ consensus forecast points to continued but decelerating growth: [37]
- 2025 revenue: $13.36 billion, up 21.6% from $10.98 billion in 2024
- 2026 revenue: $15.81 billion, up 18.3%
- 2025 EPS: $17.50 (up 156% vs 2024, partly reflecting accounting and margin shifts)
- 2026 EPS: $20.60, up 17.7%
TIKR’s forecast summary paints a similar picture: [38]
- Revenue growth of ~19% annually through 2027, with operating margins expanding from ~28% to ~32%.
- Current valuation around 52x forward earnings.
- A guided valuation model that, based on analyst estimates, points to ~$1,473 per share by 2027, roughly a 56% total return or ~22% annualized from around $940 when the report was written.
TIKR stresses that this upside assumes smooth execution on AI monetization and margin expansion. With the stock already on a premium multiple, there is little margin for error.
Long‑range algorithmic and DCF views
Benzinga’s October deep‑dive, using CoinCodex and other models, highlights just how wide the forecast cone has become: [39]
- Consensus target: ~$1,128.97 (32 analysts), with a high of $1,300 and a low of $724.
- CoinCodex’s algorithmic projections suggest:
- Average price around $878 in 2025
- A potential dip toward the mid‑$600s in 2026–2027, before recovering toward $1,140+ by 2028
- Very long‑term projections (2030, 2040, 2050) that span hundreds of dollars, underscoring how speculative long‑dated models are.
Simply Wall St, using a discounted cash‑flow approach, estimates a “fair value” around $1,154.54, implying that the stock was about 28–29% undervalued versus late‑November prices near $822. At the same time, it points out that ServiceNow trades at roughly 98.5x earnings, versus 32x for the U.S. software industry and around 54x for peers—an unusually steep premium that could compress if growth slows. [40]
Quant & Technical Signals: Short‑Term Caution
While fundamental analysts lean bullish, quantitative and technical models are more cautious around current levels.
- StockInvest.us tagged ServiceNow as a short‑term “negative” candidate, even while acknowledging some positive signals. Its model pegged a “fair opening price” for December 4 at $826.42 and warned that NOW “will still perform weakly in the next couple of days or weeks,” framing it as a Hold or cautious‑accumulate situation. [41]
- TS2 Tech’s December 1 technical round‑up pointed to support zones near $805–$806 and deeper support around $785 and $765, with resistance levels around $823, $876 and $979. It also cited CoinCodex’s near‑term sentiment as “bearish,” expecting mostly sideways‑to‑down trading before a potential rebound later in December. TS2 Tech+1
Taken together, quant models and chart‑based tools are signaling that momentum is not yet convincingly bullish, even if the long‑term fundamental story looks intact.
The Big Picture for Investors as of December 4, 2025
Bringing all of this together, the ServiceNow investment case today looks like a tug‑of‑war between fundamentals and valuation:
Bullish factors
- Strong operational performance: Q3 delivered 20%+ revenue growth, expanding margins, robust free cash flow and higher guidance. [42]
- AI leadership narrative: Products like Now Assist, AI Experience, AI Control Tower and RaptorDB are gaining traction, with AI‑related ACV expected to more than double between 2025 and 2026. [43]
- Strategic M&A: Veza (identity security), Moveworks (conversational AI) and Logik.io (CPQ) build out ServiceNow’s platform into security, CRM and agentic AI, while the unified Now Platform makes integrations faster and deeper than many competitors can manage. [44]
- High renewal and large‑deal momentum: A ~98% renewal rate and growing numbers of $1M+ and $5M+ ACV customers support a long‑duration recurring‑revenue story. [45]
- Street support: Most analysts still rate NOW a Buy or equivalent, with average 12‑month targets suggesting 30–40% upside from current levels. [46]
Bearish and risk factors
- High valuation: Whether you look at P/E, EV/sales or EV/FCF, ServiceNow trades at a significant premium to the software sector, leaving the stock vulnerable to multiple compression if growth slows even modestly. [47]
- Competition: Heavyweights like Microsoft and Salesforce are investing aggressively in overlapping AI and automation capabilities, potentially limiting upside or pressuring pricing over time. [48]
- Macro & federal exposure: Around 10% of revenue comes from the public sector, and management has openly flagged tightening U.S. federal budgets and shutdown dynamics as sources of near‑term timing risk. [49]
- Acquisition and integration risk: Veza, Moveworks and Logik.io add capability, but they also increase integration complexity and financial commitments, especially if AI demand does not ramp as quickly as expected. [50]
- Technical overhang: The stock is still well below its 2025 high, and technical/quant models largely see range‑bound or slightly negative near‑term behavior. [51]
Bottom Line
As of December 4, 2025, ServiceNow (NOW) sits in a familiar high‑growth tech position:
- Fundamentals and the AI story are strong, reinforced by Q3 beats, raised guidance and a high‑profile move into identity security with Veza.
- Valuation remains demanding, and recent insider sales, while small, underscore that management is happy to take some chips off the table at these levels.
- Wall Street forecasts skew bullish, but quant and technical tools are waving a yellow flag on the near term.
For investors and traders, the next key catalysts include:
- The December 5 stock‑split vote and eventual implementation
- Any further details or closing timeline on the Veza acquisition
- Q4 2025 earnings and 2026 guidance, which will test whether ServiceNow can keep AI‑driven growth in the low‑20% range while expanding margins.
As always, this article is for information and news purposes only and is not personalized investment advice. Anyone considering NOW should weigh these developments against their own risk tolerance, time horizon and portfolio needs, and consider consulting a qualified financial advisor.
References
1. www.investing.com, 2. newsroom.servicenow.com, 3. www.investing.com, 4. www.indmoney.com, 5. www.marketbeat.com, 6. www.investing.com, 7. veza.com, 8. www.securityweek.com, 9. www.securityweek.com, 10. www.darkreading.com, 11. www.darkreading.com, 12. www.marketbeat.com, 13. www.marketbeat.com, 14. www.tradingview.com, 15. newsroom.servicenow.com, 16. newsroom.servicenow.com, 17. www.investors.com, 18. newsroom.servicenow.com, 19. www.investing.com, 20. www.investing.com, 21. newsroom.servicenow.com, 22. newsroom.servicenow.com, 23. newsroom.servicenow.com, 24. www.sec.gov, 25. www.marketbeat.com, 26. www.marketwatch.com, 27. www.marketwatch.com, 28. www.marketbeat.com, 29. www.investing.com, 30. www.investing.com, 31. www.sec.gov, 32. www.marketbeat.com, 33. stockanalysis.com, 34. stockanalysis.com, 35. stockanalysis.com, 36. www.tradingview.com, 37. stockanalysis.com, 38. www.tikr.com, 39. www.benzinga.com, 40. simplywall.st, 41. stockinvest.us, 42. newsroom.servicenow.com, 43. newsroom.servicenow.com, 44. www.marketbeat.com, 45. www.benzinga.com, 46. www.marketbeat.com, 47. simplywall.st, 48. www.benzinga.com, 49. newsroom.servicenow.com, 50. www.marketbeat.com, 51. stockinvest.us
