ServiceNow Deepens AI Strategy With Armis and Moveworks as Wall Street Debates Valuation

Overview

• ServiceNow agreed to buy Armis for $7.75 billion in cash, aiming to extend cyber exposure management across IT, medical, OT, and other connected devices.
• The company also acquired Moveworks to add a front-end AI assistant, enterprise search, and an agentic reasoning engine to the Now Platform.
• Jefferies reaffirmed a Buy rating, calling ServiceNow an AI growth winner supported by maturing tools, fresh launches, and steadier U.S. federal demand.
• Valuation concerns persist, with Jim Cramer citing an estimated 42x P/E as elevated and KeyBanc downgrading the stock to Underweight with a $775 price target.
• Stifel reset its price target to $230 strictly for stock-split mechanics, while consensus remains Strong Buy with a mean target near $225 ahead of Q4 results.