NEW YORK, January 1, 2026, 14:26 ET — Market closed
- ServiceNow shares closed down 0.7% at $153.19 on Dec. 31, the last trading day of 2025.
- A recent SEC filing shows CEO Bill McDermott’s amended contract extends through at least 2030 and allows for a co-CEO or chairman role at the board’s discretion.
- Investors are heading into Friday’s reopen watching U.S. jobs and inflation data in early January, plus the Fed’s late-January meeting.
ServiceNow (NOW) shares ended 2025 slightly lower, closing down 0.7% at $153.19 on Wednesday. U.S. stock markets are closed on Thursday for New Year’s Day.
The latest focus for investors is a management and governance update that becomes effective on Jan. 1. In a Form 8-K — an SEC filing used to disclose significant corporate events — ServiceNow outlined an amended employment agreement for CEO Bill McDermott.
The filing said McDermott will remain in service to the company through at least Dec. 31, 2030, and may serve as CEO, co-CEO, executive chairman or non-executive chairman at the board’s discretion and with mutual understanding.
ServiceNow also said it amended its executive severance policy, including benefits tied to a “change in control,” a common term for a takeover or merger. The filing described enhanced payouts and accelerated vesting of certain stock awards under specified termination scenarios. SEC
A report by The Register drew attention this week to the co-CEO language, while citing a company statement that no leadership changes were being made.
The stock’s price level reflects a mid-December 5-for-1 split, which increases share count while leaving the company’s overall value unchanged. Trading on a split-adjusted basis began in December, the company said.
Management continuity is being watched closely after ServiceNow agreed last month to buy cybersecurity firm Armis for about $7.75 billion in cash, funding the deal with cash on hand and debt, with closing expected in the second half of 2026, subject to approvals.
In the Armis announcement, Amit Zavery, ServiceNow’s president and chief operating officer, said: “ServiceNow is building the security platform of tomorrow.” ServiceNow Investor Relations
The deal and the severance-policy update keep attention on capital allocation and execution risk — how quickly ServiceNow can integrate acquisitions while sustaining growth in its core workflow software as enterprise tech budgets remain sensitive to interest rates.
Ahead of Friday’s reopening, traders will also have one eye on early-January U.S. data that can swing rate expectations. The Labor Department’s December employment report is scheduled for Jan. 9, and the December CPI inflation report is scheduled for Jan. 13, according to BLS calendars.
The Federal Reserve’s next policy meeting is scheduled for Jan. 27-28, with markets typically recalibrating growth-stock valuations when expectations for borrowing costs shift.
For ServiceNow specifically, investors will watch for any follow-on disclosure about leadership structure and succession planning, updates on the Armis timetable and financing, and whether the stock holds recent levels. In the last session, the shares traded between $152.60 and $154.69 — levels that may act as near-term markers when trading resumes.
