Updated: Wednesday, December 17, 2025 — ServiceNow, Inc. (NYSE: NOW) is back in focus after a sharp, headline-driven selloff earlier this week and a rebound in Wednesday’s session. As of 15:36 UTC, ServiceNow shares traded at $806.62, up $25.50 (about +3.3%) from the prior close, after ranging between $782.00 and $806.78 intraday.
The move comes as investors digest three overlapping catalysts:
- Unconfirmed acquisition chatter that ServiceNow is in advanced talks to buy cybersecurity firm Armis in a deal valued up to $7 billion (per Bloomberg, as reported by Reuters). [1]
- A wave of analyst actions (initiations, target cuts, and upgrades) that hit in rapid succession between Dec. 15–17. [2]
- The company’s 5-for-1 stock split, with split shares scheduled to be distributed after the market close on or about Dec. 17, and split-adjusted trading expected to begin Dec. 18, 2025. [3]
Below is a full, news-style breakdown of what happened, what Wall Street is saying now, and what the outlook looks like heading into 2026.
What’s moving ServiceNow stock on Dec. 17, 2025
The week’s biggest driver: Armis deal speculation (and why it spooked the market)
The pressure started after reporting that ServiceNow was in advanced talks to buy Armis, a cybersecurity company, at a valuation that could reach $7 billion. Reuters, citing Bloomberg’s reporting, said the deal could be announced in the coming days—while also noting talks could fall apart or a rival bidder could emerge. [4]
On Monday, Dec. 15, ServiceNow shares fell more than 11% and led the S&P 500 decliners, with coverage pointing to two key concerns: (1) the perceived size/price of the potential deal, and (2) increased investor sensitivity to “AI disruption” risks across large-cap software. [5]
A recurring point in market commentary: neither ServiceNow nor Armis publicly confirmed the reported talks, leaving investors to price the risk of a large transaction without deal terms, financing details, or synergy guidance. [6]
Why the rumored deal matters strategically
From a strategy standpoint, the “why” is straightforward: Armis is typically described as helping organizations identify, manage, and secure connected devices (including IoT/OT environments). Analysts and industry coverage have suggested that combining that type of device visibility with ServiceNow’s workflow automation and CMDB-driven IT operations could expand ServiceNow’s footprint deeper into security and asset management. [7]
But the market’s immediate “why not” was also clear: a $7B purchase would likely be ServiceNow’s largest acquisition, and investors worry big M&A can dilute margins, add integration risk, and distract management—especially as software buyers scrutinize AI ROI and vendors race to prove monetization. [8]
The 5-for-1 ServiceNow stock split is landing now (what changes on Dec. 18)
ServiceNow’s shareholder-approved 5-for-1 split is a separate catalyst that arrives at the same time as the M&A headlines.
Per the company’s investor communications and related filings:
- Record date: shareholders of record as of December 16, 2025 receive the split shares. [9]
- Distribution: four additional shares for each share held are expected to be distributed after market close on or about December 17, 2025. [10]
- Split-adjusted trading: expected to begin December 18, 2025. [11]
What this means for investors in plain terms
A stock split does not change ServiceNow’s underlying business value or market capitalization. It simply increases the share count and reduces the price per share proportionally.
At today’s pre-split level near $806, the split-adjusted price would mechanically reset to roughly $160 (one-fifth), all else equal—while each shareholder holds five times as many shares. [12]
Also important: analyst price targets and historical prices will generally be adjusted by data providers after the split takes effect, so investors should expect headline numbers to “jump” in appearance even though nothing fundamental changed. [13]
Wall Street’s latest view: analyst upgrades, downgrades, and fresh targets
ServiceNow is seeing a busy tape of research notes this week—some defending the selloff as overdone, others framing it as a warning shot about SaaS durability.
New and notable research actions (Dec. 15–17)
Here are the key calls circulating into Dec. 17, 2025 (targets are pre-split unless otherwise stated):
- BTIG: initiated coverage at Buy with a $1,000 price target (reported Dec. 17). [14]
- Bernstein SocGen: reiterated Outperform with a $1,093 price target (published Dec. 17), explicitly addressing the recent volatility and the Armis speculation. [15]
- DA Davidson: maintained Buy but cut its target to $1,100 from $1,250 (published Dec. 16). [16]
- Mizuho: lowered target to $1,050 from $1,150, kept an Outperform rating (published Dec. 16). [17]
- Guggenheim: upgraded ServiceNow to Neutral from Sell, with commentary framing the move as valuation-driven after the stock’s decline (published Dec. 16). [18]
- KeyBanc: downgraded to Underweight with a $775 target, pointing to competitive and AI-related risks for the traditional SaaS model (reported across financial coverage on Dec. 15). [19]
- Citizens: maintained a $1,300 price target (published Dec. 16). [20]
What the price targets imply (and why investors should treat them carefully this week)
Across analyst-consensus trackers, ServiceNow still screens as a “buy-leaning” name with substantial upside implied from mid-$700s to low-$800s levels:
- MarketBeat shows an average target around $1,125 (about ~40% upside from the mid-$800 area cited on that page). [21]
- StockAnalysis lists a consensus in the low $1,100s with a “Strong Buy” skew among covering analysts. [22]
However, because the 5-for-1 split begins Dec. 18, investors should expect these targets to be re-scaled (roughly divided by five) by many data feeds shortly. [23]
Broader 2025 context: why ServiceNow has been volatile even before this week
“Software has taken a beating” narrative is real in 2025
Multiple market overviews published this week emphasize that large-cap software stocks have been pressured in 2025—even those posting solid operating results—because investors are wrestling with whether generative AI will enhance SaaS economics or compress them over time. In that context, ServiceNow was cited as one of the notable decliners (down roughly the mid-to-high 20% range in 2025, depending on the measurement date used by each outlet). [24]
The “AI trade” rotation argument: why some strategists still see upside
A separate strand of analysis argues that market attention may be shifting from AI infrastructure toward enterprise software platforms that already sit on top of corporate data and workflows. In that framing, ServiceNow is often listed alongside other enterprise software leaders as a potential beneficiary as AI becomes embedded into day-to-day business processes. [25]
Fundamentals check: what ServiceNow has delivered recently
Even with the stock’s volatility, ServiceNow’s recent reported financial performance has been positioned as resilient:
- In its Q3 2025 results, ServiceNow reported subscription revenues of $3.299B and total revenues of $3.407B, and said it raised guidance for 2025 subscription revenue, operating margin, and free cash flow. [26]
- Reuters also reported in late October that ServiceNow raised its full-year subscription revenue forecast, citing demand for AI-powered software among enterprise clients. [27]
This is one reason some analysts see the recent drawdown as valuation and sentiment-driven rather than a sudden deterioration in business conditions—though skeptics argue that competitive intensity and AI-era pricing models are still evolving.
How to think about the Armis rumor from here
What’s confirmed vs. what’s not
Confirmed: major outlets have reported that ServiceNow is in advanced talks, citing Bloomberg’s reporting; Reuters stated the talks could produce a deal valued up to $7B, but also could fall apart. [28]
Not confirmed: any definitive announcement from ServiceNow or Armis that a deal is signed. Several reports explicitly note that neither company commented. [29]
Why the market may stay jumpy until clarity arrives
Deal speculation of this scale tends to keep a stock volatile because investors must handicap:
- purchase multiple and dilution/financing structure,
- integration risk,
- whether the transaction changes long-term margin trajectory, and
- whether management is using M&A to protect growth targets. [30]
This is especially true when the sector is already debating “AI disruption” and the future shape of SaaS pricing.
Outlook: what to watch next for ServiceNow (NOW) stock
Near-term catalysts
- Split-adjusted trading begins Dec. 18, 2025 — expect mechanical price/option adjustments and potentially higher retail participation due to a lower nominal share price. [31]
- Any update on Armis — confirmation, denial, or revised terms would likely reset sentiment quickly. [32]
- Next earnings window (late January / early February 2026) — dates vary by tracker and may remain estimates until the company formally announces. [33]
The big 2026 debate: can ServiceNow prove AI monetization without margin pain?
ServiceNow’s bull case hinges on the company turning AI features into a durable expansion of platform value—without creating a cost structure that erodes free cash flow margins. The bear case is less about today’s reported numbers and more about what happens if customers demand AI functionality while resisting incremental spend, or if competitors compress pricing power.
That’s the backdrop behind both the skeptical “AI threatens SaaS” calls and the more constructive “platform owners win” theses appearing across today’s research notes and market commentary. [34]
Bottom line for Dec. 17, 2025
ServiceNow stock is rebounding today, but the story remains fluid: an unconfirmed $7B Armis headline created a sharp risk-off move early in the week, analysts are split between “overdone selloff” and “structural SaaS/AI risk,” and the company’s 5-for-1 split is arriving right now—an event that can change trading behavior without changing fundamentals. [35]
References
1. www.reuters.com, 2. www.investing.com, 3. investor.servicenow.com, 4. www.reuters.com, 5. www.investopedia.com, 6. www.investopedia.com, 7. www.barrons.com, 8. www.marketwatch.com, 9. investor.servicenow.com, 10. investor.servicenow.com, 11. investor.servicenow.com, 12. investor.servicenow.com, 13. investor.servicenow.com, 14. www.gurufocus.com, 15. www.investing.com, 16. www.investing.com, 17. www.tipranks.com, 18. www.investing.com, 19. www.barrons.com, 20. www.investing.com, 21. www.marketbeat.com, 22. stockanalysis.com, 23. investor.servicenow.com, 24. www.barrons.com, 25. www.marketwatch.com, 26. www.servicenow.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.investopedia.com, 30. www.marketwatch.com, 31. investor.servicenow.com, 32. www.reuters.com, 33. finance.yahoo.com, 34. www.barrons.com, 35. www.reuters.com
