Overview
- Bloomberg has reported that ServiceNow is in advanced, unconfirmed talks to buy cybersecurity firm Armis for about $7 billion, a deal that could be announced soon but may not close.
- BTIG initiated coverage at Buy with a $1,000 target, citing progress from Now Assist to an AI Control Tower and close work with Microsoft to run agent-based workflows across enterprises.
- A Seeking Alpha author reiterated a high-conviction buy with a $1,183 target after a better-than-expected Q3 FY25, while noting potential valuation, financing, and margin pressures if the Armis deal proceeds.
- KeyBanc downgraded ServiceNow to Underweight with a $775 target, flagging AI-driven disruption risk, possible share loss to Microsoft in orchestration, government spending scrutiny, increased inorganic investment, and a premium valuation.
- Armis secures unmanaged and connected devices, recently raised $435 million, was last valued near $6.1 billion, and a purchase at roughly $7 billion would be ServiceNow’s largest acquisition to date.