ServiceNow’s $7.8B Armis deal and AI upgrades define a turbulent 2025
ServiceNow kicked off 2025 with robust financial results and significant updates to its AI platform. The company reported a 19% year-over-year revenue increase in the first quarter, outpacing both internal and analyst projections. Later in the year, it made its largest-ever acquisition by purchasing cybersecurity firm Armis for nearly $7.8 billion.
The year began with the launch of Yokohama, an upgrade to ServiceNow’s AI platform. This update introduced more autonomous AI features, aiming to enhance efficiency for users. By mid-2025, the company followed up with another enhancement called Zurich.
In the first quarter, ServiceNow recorded $846 million in non-GAAP net income. Overall and subscription revenue grew by 19% compared to the same period in 2024. Despite these gains, the stock price dropped in the latter half of the year.
On 23 December 2025, ServiceNow announced its $7.75 billion all-cash acquisition of Armis. The deal marked the company’s biggest purchase to date, expanding its cybersecurity capabilities. Earlier in the year, a 5-for-1 stock split was also introduced, though it failed to generate much investor excitement.
The acquisition of Armis and the AI upgrades signaled ServiceNow’s push into new markets. However, the stock’s decline in late 2025 showed mixed investor confidence. The company’s financial performance remained strong, with double-digit revenue growth continuing into the year.
