ServiceNow (NYSE: NOW) is heading into the Monday, Dec. 22, 2025 market open with one of the most headline-heavy setups investors have seen from the enterprise software leader this year: a sharp selloff tied to big-ticket acquisition chatter, a fresh wave of analyst resets, and a new 5‑for‑1 stock split that has changed the way price levels and targets look on a chart.
Below is what matters most for ServiceNow stock before the opening bell—covering the latest news, Wall Street forecasts, and the key catalysts that could shape the next move.
Where ServiceNow stock stands heading into Monday’s open
As of the latest available pricing, ServiceNow shares last traded around $155.31 (split-adjusted) after Friday’s close, with the most recent session ranging roughly from the low $150s to the high $150s.
That price is post-split. If you’ve been following headlines that quote NOW at ~$800+, those were pre-split numbers from earlier in the week—more on that below.
Why NOW stock sold off: the Armis deal rumor and “Death of SaaS” fears
The headline: ServiceNow reportedly in talks to buy Armis for up to $7 billion
The biggest near-term driver is a report that ServiceNow is in advanced talks to acquire cybersecurity company Armis for as much as $7 billion, with the possibility of a deal announcement “in the coming days,” though talks could still fall apart or another bidder could emerge. Reuters
Reuters also noted Armis had been eyeing an IPO and recently raised $435 million at a $6.1 billion valuation, and that it serves more than 40% of Fortune 100 companies—a sign of scale and enterprise penetration that helps explain why the rumored price tag is so large. Reuters
The market reaction: investors recoiled at the price and timing
The first wave of selling hit hard: on Monday, Dec. 15, ServiceNow dropped more than 11%, making it the S&P 500’s worst performer that day, after the Armis report circulated. Investopedia
At the same time, bears gained ammunition from an influential downgrade. Barron’s reported that KeyBanc lowered its view and warned ServiceNow could become caught in a broader narrative shift around the future of SaaS as AI changes software delivery and IT spending patterns. Barron’s
ServiceNow’s 2025 M&A surge: Moveworks closed, Veza announced, Armis rumored
One reason the Armis rumor hit so forcefully is context: ServiceNow has been unusually active on the deal front.
1) Moveworks: acquisition completed (agentic AI for employees)
On Dec. 15, ServiceNow confirmed it completed its acquisition of Moveworks, bringing in an AI assistant layer and agentic reasoning capabilities meant to sit on top of enterprise systems and workflows. Moveworks
Earlier, when the deal was announced, ServiceNow disclosed the purchase price: $2.85 billion, paid in a mix of cash and stock (subject to adjustments). ServiceNow
2) Veza: official intent to acquire (identity security for the “agent era”)
On Dec. 2, ServiceNow announced its intent to acquire Veza, describing the move as an expansion of its Security and Risk portfolio into identity security—explicitly tying the strategy to controlling what AI agents (as well as humans and machines) can access. ServiceNow Newsroom
ServiceNow highlighted Veza’s “Access Graph” approach and said Veza serves nearly 150 enterprise customers, with 230 employees globally, and that the deal remains subject to regulatory approvals and closing conditions. ServiceNow Newsroom
3) Armis: what it would add (if it happens)
If ServiceNow does buy Armis, it would represent a deeper push into cybersecurity—especially device and operational technology coverage—at a time when cyber resilience is rising on board agendas. Reuters’ summary of Armis’ scale and enterprise footprint underscores why the market sees it as a “platform-grade” asset rather than a niche add-on. Reuters
Investor concern isn’t that security is a bad category—it’s whether ServiceNow is overpaying and taking on integration complexity while still needing to defend its core workflow business against platform competitors.
The 5‑for‑1 stock split: what changed, and why headlines look confusing
ServiceNow’s board and shareholders approved a 5‑for‑1 stock split, with:
- Record date: Dec. 16, 2025
- Distribution: after market close on/about Dec. 17, 2025
- Split-adjusted trading: expected to begin Dec. 18, 2025 ServiceNow Investor Relations
Quick split math for readers
A 5‑for‑1 split means:
- One old share became five shares
- The stock price should, in theory, be about one-fifth of where it was pre-split
- The company’s market cap doesn’t change just because of the split
So when older articles talk about NOW at ~$780–$860, that maps to roughly $156–$172 on a split-adjusted basis.
This matters because analysts and news outlets may still quote pre-split price targets (like $1,200) alongside post-split trading prices, which can mislead casual readers. (A $1,200 pre-split target is about $240 post-split.)
Fundamentals check: what ServiceNow last reported and guided
While the stock is trading on deal headlines right now, ServiceNow’s last earnings update still matters because it frames what the company is trying to protect: durable ~20% subscription growth with expanding profitability.
In its Q3 2025 results, ServiceNow reported:
- Subscription revenue:$3.299B, up 21.5% year over year (20.5% constant currency) ServiceNow
- Total revenue:$3.407B, up 22% year over year (20.5% constant currency) ServiceNow
- GAAP net income:$502M (diluted EPS $2.40) ServiceNow
- Non-GAAP net income:$1.010B (diluted EPS $4.82) ServiceNow
ServiceNow also raised full-year 2025 guidance across key metrics, including:
- Full-year subscription revenue:$12.835B–$12.845B ServiceNow
- Full-year non-GAAP operating margin:31% ServiceNow
- Full-year free cash flow margin:34% ServiceNow
For Q4, the company guided subscription revenue of $3.420B–$3.430B and explicitly flagged that tightening budgets at U.S. federal agencies could weigh on results. ServiceNow
The AI growth narrative: why ServiceNow keeps spending on “agentic” capabilities
ServiceNow’s strategy in 2025 has been consistent: position itself as an AI control tower that orchestrates work across systems, people, and now AI agents.
A Nasdaq/Zacks analysis in early December pointed to accelerating AI traction, noting:
- AI Control Tower deal volume “more than quadrupled” sequentially in Q3 2025
- ServiceNow’s AI products were expected to surpass $0.5B in ACV in 2025 and remain on track for $1B in 2026 Nasdaq
The same analysis framed the Veza acquisition as strategically important because it governs what AI agents can access—an issue that becomes more material as enterprises deploy autonomous workflows. Nasdaq
Other current ServiceNow news investors should know
Even as M&A dominates the tape, ServiceNow has shipped several notable announcements that reinforce its platform expansion story:
A major Canada public sector investment
ServiceNow announced a CA$110 million multi-year investment to help Canada’s public sector adopt AI at scale, including a new Canada Centre of Excellence and approximately 100 new Canada-based jobs, plus Canadian-hosted infrastructure with data residency and security controls. ServiceNow Newsroom
A Figma partnership aimed at accelerating app creation
ServiceNow and Figma announced a strategic collaboration integrating Figma with the ServiceNow AI Platform—positioned as a faster path from design to deployable enterprise applications. ServiceNow said early results suggest the integration can reduce initial UI and data model implementation time by more than 80%. ServiceNow Newsroom
These aren’t the catalysts moving the stock day-to-day right now, but they matter for the longer-term question investors are asking: does ServiceNow’s platform widen its moat as AI shifts how work software is built and used?
Wall Street forecast: analyst targets, upgrades, downgrades
Despite the volatility, aggregated forecasts remain broadly constructive—though the dispersion is widening.
Consensus view (split-adjusted targets)
According to StockAnalysis’ compilation of analyst targets:
- Consensus rating: Strong Buy
- Average price target: $223.29 (about 44% above ~$155)
- Target range: $155 to $260 StockAnalysis
Recent notable moves captured in that same dataset include:
- KeyBanc downgrade with a $155 split-adjusted target (effectively flat from recent levels) StockAnalysis
- BTIG initiation at $200 StockAnalysis
- DA Davidson trimming its target from $250 to $220 StockAnalysis
RBC reiterates bullish stance (pre-split target)
Separately, Investing.com reported RBC Capital reiterated an Outperform rating with a $1,200 pre-split target (about $240 split-adjusted), arguing software consolidation may accelerate in an AI-first world and viewing ServiceNow as a consolidator. Investing
Valuation: what investors are paying for NOW right now
ServiceNow remains priced as a premium enterprise software franchise—even after the selloff.
- CompaniesMarketCap listed ServiceNow’s market capitalization around $161B (as of December 2025). CompaniesMarketCap
- GuruFocus put ServiceNow’s EV-to-revenue at about 12.49 (as of Dec. 21, 2025) and noted a price-to-sales figure around 12.84 at the then-current price. GuruFocus
This is the key tension in the stock:
- Bulls argue premium multiples are justified by durable subscription growth, expanding AI monetization, and platform consolidation.
- Bears argue the multiple leaves little room for error—especially if a large acquisition triggers integration risk, margin pressure, or investor skepticism about capital allocation discipline.
The pre-market checklist for Dec. 22: what to watch next
Here’s what matters most going into Monday’s session:
- Any confirmation (or denial) on Armis
The rumor is the headline driver. If ServiceNow confirms a deal, investors will immediately focus on price, financing mix, and expected integration timeline. Reuters - How investors interpret the M&A “stack”
With Moveworks now closed and Veza pending, the market may decide whether ServiceNow is building a coherent AI + security platform—or simply spending aggressively at a time when software multiples are under pressure. Moveworks - Split-related confusion and liquidity shifts
Post-split trading can amplify volatility, especially during holiday-thinned sessions. Keep comparisons consistent: split-adjusted price levels vs. pre-split headlines. ServiceNow Investor Relations - Any incremental reads on demand into Q4 and early 2026
ServiceNow’s own guidance flagged U.S. federal agency budget tightening as a potential headwind—something that can affect sentiment if investors start extrapolating softness beyond government workflows. ServiceNow - Analyst follow-through after the “reset” week
With targets now recalibrated post-split and post-rumor, additional upgrades/downgrades can move the stock quickly in a low-liquidity tape. StockAnalysis
Bottom line for ServiceNow stock before Monday’s open
ServiceNow stock is entering Dec. 22 with a classic “fundamentals vs. tape” standoff:
- Fundamentals: subscription growth remains robust and management last guided to strong profitability and cash flow margins. ServiceNow
- Tape: investor attention is dominated by whether ServiceNow is about to announce a $7B+ cybersecurity acquisition and whether this M&A pace is strategic brilliance—or an expensive distraction. Reuters
