NEW YORK, December 29, 2025, 18:56 ET — After-hours
- ServiceNow shares were up about 0.5% in after-hours trading.
- TD Cowen trimmed its price target while keeping a buy rating.
- Investors are watching how ServiceNow funds and integrates the planned Armis purchase ahead of the next earnings update.
ServiceNow Inc shares rose about 0.5% in after-hours trading on Monday to $154.58.
The modest move comes as investors head into the final trading days of the year weighing whether the enterprise-software sector’s rich valuations can hold up against softer tape and company-specific execution risks.
Those risks are back in focus for ServiceNow after its recent burst of dealmaking, including a planned $7.75 billion purchase of cybersecurity firm Armis, and as analysts reset targets into 2026.
U.S. stocks slipped in holiday-thinned trading on Monday, with the S&P 500 down 0.3% and the Nasdaq Composite off 0.5%, according to an Associated Press market recap.
Enterprise software peers were mixed in late trading, with Salesforce little changed and Workday down about 0.8%.
A key near-term catalyst is how Wall Street is marking down expectations after the Armis announcement. TD Cowen lowered its price target on ServiceNow to $230 from $250 while keeping a “buy” rating, MarketBeat reported, citing a research note. MarketBeat
A price target is an analyst’s estimate of where a stock may trade over the next year, and a “buy” rating signals the analyst expects the shares to outperform. TD Cowen’s revised target implies roughly 49% upside from Monday’s after-hours level.
Technicians also track moving averages — the average closing price over a set window — as a simple read on trend. MarketBeat data showed ServiceNow trading below its 50-day and 200-day moving averages.
ServiceNow agreed last week to buy Armis for about $7.75 billion in cash, funding the deal with cash on hand and debt, and expects it to close in the second half of 2026, subject to approvals and other conditions.
In announcing the Armis agreement, ServiceNow President and COO Amit Zavery said, “ServiceNow is building the security platform of tomorrow.” ServiceNow Investor Relations
What investors are watching next is whether the acquisition strategy translates into durable growth without squeezing cash flow, especially as the company absorbs another large target and faces stricter scrutiny on execution.
ServiceNow has not confirmed the date for its next earnings release; MarketBeat’s earnings calendar currently estimates a Feb. 4 report based on prior schedules.
With the broader market slipping into year-end and ServiceNow’s deal pipeline in focus, traders are likely to key on any fresh disclosures around financing, integration timing and 2026 outlook when the company next reports.
