ServiceNow Stock Today (NOW): AI momentum, 5-for-1 split, and security questions - November 23, 2025
ServiceNow (NYSE: NOW) closes the week in a familiar spot: strong AI demand, premium pricing, and fresh questions about risk. Shares recently traded around $813.43, up modestly on the week but still well below 2025 highs.
The business is executing. The stock is recalibrating. That gap is where the opportunity-and the risk-sits.
Price snapshot
- Latest price: ≈ $813.43
- Volatility: Down ~2% Thursday after an insider sale disclosure; briefly dipped below $800 before bouncing.
- YTD context: Down mid-teens by late October, lagging mega-cap tech despite a positive Q3 print.
Q3 2025: AI demand keeps growth above 20%
- Subscription revenue: $3.299B, up 21.5% year over year (20.5% cc).
- Total revenue: $3.407B, up 22% year over year.
- cRPO: $11.35B, up 21% year over year.
- Adjusted EPS: ~$4.82 vs. expectations just above $4.20.
Management raised 2025 subscription revenue guidance to ~$12.84-$12.85B, ahead of prior and consensus ranges. The narrative: ServiceNow is positioning as an "AI platform for business transformation," leaning into Now Assist, Workflow Data Fabric, and RaptorDB.
Still, billings softness and post-print selling remind us the bar is high. With a rich multiple, even small signs of deceleration matter.
5-for-1 split: mechanics and second-order effects
The board approved a 5-for-1 split on October 29, 2025, pending a December 5 shareholder vote.
- If approved: One share becomes five; price per share divides by five. Ownership economics don't change.
- Why it matters: Lower price points can expand employee participation, improve options accessibility, and invite more retail flow.
Splits don't change growth, margins, or competitive position. They can change liquidity, psychology, and how the stock trades around options and index flows.
AI strategy: models, UI, and integrations
Models v2.0. On October 16, ServiceNow shipped new small and large language models for Now Assist and AI agents. The small model targets efficient multi-step tasks; the large model boosts reasoning, long-context handling, and agentic workflows. New and upgraded instances get v2.0 by default (with Generative AI Controller 11.2).
Zurich release + AI Experience UI. A new, context-aware interface aims to be the primary doorway for employees to delegate tasks and get answers. Zurich emphasizes multi-agent development, autonomous workflows, and tighter governance (e.g., Vault Console, Machine Identity Console).
New integrations. Recent tie-ups with Microsoft, Tanium, Palo Alto Networks, Aria Systems, and Camunda extend workflow orchestration and security across the enterprise stack. This helps deepen footprint with large customers and strengthens the cross-platform AI story for CIOs.
Security: "second-order" prompt injection risk in Now Assist
Security researchers flagged that low-privilege AI agents can be influenced by hidden instructions in allowed data, then recruit higher-privilege agents to act-potentially exfiltrating data or modifying records under the user's permissions. Reports note default configurations enable this behavior.
ServiceNow has updated guidance and recommends supervised execution for sensitive agents, disabling autonomous overrides where needed, and segmenting duties with monitoring. Expect more headlines here; it's a real operational risk and a potential catalyst for demand in governance and observability.
For context on the research, see coverage from The Hacker News here. For product background, explore ServiceNow's site here.
Valuation check
- Trailing P/E: ~98x
- Forward P/E: ~91x
- PEG: ~4.1
- EPS outlook: ~29% growth next year (from ~$8.93 to ~$11.49, per MarketBeat-tracked estimates).
Analyst stance skews positive with an average target near $1,160 (pre-split). Upside depends on keeping revenue growth north of 20%, scaling AI adoption, and pushing margins higher-while IT budgets and AI priorities remain fluid.
Other moving parts
- Moveworks acquisition: $2.85B deal under DOJ review. Strategic fit is clear; regulatory and integration risk remain.
- U.S. federal demand: Budget constraints and shifting missions could push deals right; recent shutdown talk adds timing risk.
Key catalysts into year-end
- Dec 5, 2025: Shareholder vote on the 5-for-1 split and any management commentary on timing.
- AI rollout: Customer adoption and early outcomes for Models v2.0, AI Experience UI, and multi-agent workflows.
- Security follow-through: Additional guidance or controls for prompt-injection risks in Now Assist.
- Next earnings (early Feb 2026): Q4 data will test the raised guide and the AI upsell story.
Buy, hold, or wait?
No one can make this call for you. Here's the trade-off the market is pricing right now.
- Bullish view: 20%+ growth at scale, maturing AI platform with proprietary models and agent workflows, sticky integrations, and a split that broadens participation.
- Cautious view: Near triple-digit P/E and rich PEG, billings and federal softness, real security questions on default agent configs, and M&A/regulatory overhang.
Bottom line
ServiceNow looks like a core enterprise AI platform with real momentum-and a valuation that assumes it stays that way. If you believe in multi-agent AI and workflow standardization across the enterprise, consolidation here may look attractive. If not, waiting for the split vote, the next print, or more clarity on AI security is reasonable.
Want a practical view of what AI tools matter to finance teams right now? Explore this curated list AI tools for finance.
Disclaimer: This article is for informational purposes only and is not financial, investment, or trading advice. Do your own research or consult a licensed professional before making decisions.
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