ServiceNow (NYSE: NOW) is a prominent player in the enterprise software industry, specializing in digital workflows that enhance productivity and efficiency for businesses. The company is known for its cloud-based platform that automates IT, employee, and customer workflows. ServiceNow competes with other tech giants like Salesforce and Microsoft in the enterprise software market.
On December 18, 2025, ServiceNow executed a 1-for-5 stock split. This move is often used by companies to make their shares more affordable to a broader range of investors. Despite this strategic decision, ServiceNow's stock experienced an 11% decline following the announcement of its planned $7 billion acquisition of Armis Security, as highlighted by Forbes. This acquisition aims to bolster ServiceNow's capabilities in safeguarding connected devices against cyber threats.
The announcement of the acquisition led to an analyst downgrade and caused unease among investors. The acquisition of Armis Security, valued at nearly $7 billion, is a strategic move to enhance ServiceNow's cybersecurity offerings. However, the market's reaction has been mixed, with the stock's decline raising questions about the potential risks and rewards of this investment. Despite the challenges, ServiceNow's strong financial metrics suggest resilience in navigating market fluctuations.
