The deal expands ServiceNow's reach into cybersecurity as it aims to create an ‘AI control tower.'
ServiceNow is a mission-critical software provider with robust recurring revenue, high retention, and accelerating profitability. NOW trades at 41x free cash flow, near the low end of its historical range, following a tech sector selloff. Revenue growth remains strong at ~20% year-over-year, with free cash flow margins near 30% and minimal debt.
In the closing of the recent trading day, ServiceNow (NOW) stood at $153.38, denoting a -80.4% move from the preceding trading day.
ServiceNow (NOW) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
ServiceNow remains a high-conviction buy for 2026, with a reiterated price target of $1,183, representing 55% upside from current levels. NOW's Q3 FY25 results exceeded expectations, with strong enterprise customer momentum and cRPO growth, supporting robust forward revenue and margin projections. Concerns over the potential $7B Armis acquisition center on steep valuation, financing risks, and possible margin compression, but strategic fit is compelling for AI platform ambitions.
ServiceNow stock (NYSE: NOW) dropped 11% on Monday after the company announced its planned $7 billion acquisition of Armis. The development triggered an analyst downgrade and unsettled investors.
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On Dec. 15, 2025, trading screens focused on ServiceNow NYSE: NOW turned a deep shade of red. Shares of the enterprise software giant dropped by more than 11.5%, leading the S&P 500's list of daily decliners.
Shares of ServiceNow (NOW) sank Monday following a report the the AI-driven enterprise software provider was close to purchasing Internet of Things security startup Armis for as much as $7 billion.
The stock drop reflects concerns that ServiceNow could get more acquisitive in a bid to ignite growth.
ServiceNow Inc (NYSE:NOW, XETRA:4S0) is reportedly in advanced discussions to acquire cybersecurity firm Armis in a deal valued at approximately $7 billion, according to a Bloomberg report. Neither company has confirmed the talks.