NEW YORK, December 30, 2025, 19:14 ET — After-hours
- ServiceNow closed down 0.24% at $154.23 and was last little changed in after-hours trading.
- Investors weighed renewed debate over ServiceNow’s acquisition binge and its planned $7.75 billion Armis purchase.
- Broader markets ended slightly lower after Fed minutes showed policymakers split on December’s rate cut.
ServiceNow, Inc. (NYSE:NOW) shares edged lower on Tuesday as investors weighed fresh scrutiny of the software maker’s acquisition binge, and held steady in after-hours trading. The stock closed down 0.24% at $154.23, after trading between $153.32 and $155.22 on about 5.1 million shares.
The enterprise workflow company is heading into year-end with deal risk back in focus. Big acquisitions can accelerate growth, but they also raise integration and financing questions that investors tend to price in quickly, especially when trading volumes are thin.
A Bloomberg report on Monday said ServiceNow has spent at least $12 billion on acquisitions or strategic investments this year, and flagged investor unease about leaning on deals to spur growth. RBC Capital Markets analyst Matthew Hedberg wrote that “Wall Street isn’t happy that the acquisition may be used to boost slowing revenue growth,” the report said. 1
ServiceNow said on Dec. 23 it agreed to acquire cyber exposure management firm Armis for about $7.75 billion in cash and expects to finance the purchase with a mix of cash on hand and debt. Armis tracks connected devices across corporate networks and helps security teams prioritize fixes across IT and operational technology, or OT, environments; ServiceNow said Armis has surpassed $340 million in annual recurring revenue, a subscription metric, and expects the deal to close in the second half of 2026, subject to approvals. 2
The stock’s muted move tracked a broader pause in U.S. equities. The S&P 500 fell 0.14% and the Nasdaq slipped 0.23% in choppy, holiday-thin trade, while technology shares ended slightly lower, Reuters reported. 3
Federal Reserve minutes released Tuesday showed officials were divided over a quarter-point rate cut at their Dec. 9-10 meeting, with some describing the decision as closely balanced. The minutes flagged a return to the regular data calendar in early January — with December jobs and consumer price data due on Jan. 9 and Jan. 13 — ahead of the Fed’s Jan. 27-28 meeting. 4
That rate backdrop matters for high-growth software names because shifting yield expectations can move valuations quickly. For ServiceNow, investors are weighing whether adding cybersecurity products through M&A can offset any cooling in organic demand without pressuring margins or the balance sheet.
Traders will watch for any new details on how ServiceNow plans to integrate Armis and how much incremental debt it takes on to fund the transaction. Regulatory review timelines, while expected to stretch into 2026, can also shape sentiment as headlines emerge.
ServiceNow’s customers use its platform to automate internal workflows such as IT service management, HR and security tasks. Investors typically focus on subscription growth and cash generation as a read on whether the company is expanding efficiently as it layers in acquired products.
With the stock still digesting the year’s deal activity, any shift in tone from Wall Street analysts — or signs of another large acquisition — could draw an outsized reaction in thin markets. For now, ServiceNow is trading more on execution risk than on near-term business updates.
