ServiceNow Acquires Armis for $7.75 Billion to Drive Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Market Growth Potential: According to Grand View Research, the robotic process automation market is projected to reach $30.85 billion by 2030, with a CAGR of 43.9%, presenting significant opportunities for companies like ServiceNow.
- Revenue Growth Performance: ServiceNow reported $3.4 billion in Q3 2025 revenue, a 22% year-over-year increase, with 97% of revenue derived from subscription services, indicating strong customer retention and stable income sources.
- Solid Customer Base: With nearly 8,400 enterprise clients, including 85% of the Fortune 500, ServiceNow boasts a 97% renewal rate, underscoring its leadership position and customer loyalty in the industry.
- Acquisition Strategy Impact: Although the $7.75 billion acquisition of Armis raised concerns and led to an 11% drop in stock price, this move reflects ServiceNow's commitment to growth through acquisitions, and if successful, could enhance market share in the long run.
NOW
$154.58+Infinity%1D
Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 1166 USD with a low forecast of 734.00 USD and a high forecast of 1315 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
28 Analyst Rating
26 Buy
1 Hold
1 Sell
Strong Buy
Current: 153.890
Low
734.00
Averages
1166
High
1315
Current: 153.890
Low
734.00
Averages
1166
High
1315
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
