• ServiceNow's potential acquisition of Armis could significantly enhance its cybersecurity capabilities and market position.
• Armis reports impressive growth, with annual recurring revenue increasing to $300 million from $200 million in 2024.
• Despite a potential downside in stock price as per KeyBanc's analysis, ServiceNow's strategic moves could bolster long-term value.

ServiceNow (NYSE:NOW) is a leading provider of workflow automation solutions, helping businesses streamline their operations. The company is currently in the spotlight due to a recent price target set by Jackson Ader from KeyBanc. On December 15, 2025, Ader set a price target of $775 for ServiceNow, while the stock was trading at $865.02, indicating a potential downside of approximately -10.41%.

ServiceNow is reportedly in advanced talks to acquire Armis, a cybersecurity startup, in a deal potentially valued at $7 billion, as highlighted by Bloomberg. Armis, based in San Francisco, specializes in identifying and tracking security threats across various industries. This acquisition would be ServiceNow's largest to date and aligns with its strategy to enhance cybersecurity capabilities.

Armis has shown impressive growth, with CEO Yevgeny Dibrov revealing $300 million in annual recurring revenue, up from $200 million in 2024. The company recently raised $435 million in a pre-IPO funding round, valuing it at $6.1 billion. These funds are intended to support a three-year plan to reach $1 billion in annual revenue.

The potential acquisition of Armis comes as the startup was preparing for an initial public offering. This move could significantly bolster ServiceNow's market position in the cybersecurity sector. However, both companies have not yet commented on the ongoing discussions, leaving the market speculating on the outcome.

ServiceNow's stock has seen fluctuations, with a current price of $865.02, reflecting a decrease of $2.47 or approximately -0.28% from the previous session. The stock has traded between $858 and $874.63 today, with a market capitalization of approximately $179.5 billion. The trading volume for the day is 925,602 shares on the NYSE.