So far, 2025 has been a pretty big year in the ServiceNow world. With acquisition announcements, AI product releases, and high-profile collaborations, there are plenty of reasons to bet on the tech giant – and many have.
But when we take a look at ServiceNow’s stock price (known as NOW), we see a more complex and mixed picture emerging. Despite impressive growth in Q1, NOW has had a more challenging period since April. But, as ever with the stock market, the answer to the question “How is it performing?” is generally “It depends on what you compare it against.”
We’re going to dive into all that detail in this article, discussing the highs and lows of NOW in 2025 – and the reasons for the changes we’ve seen. But first, let’s recap the big announcements and news of the year.
2025 in ServiceNow: The Year So Far
The first big announcement came in March this year, when ServiceNow agreed to acquire AI startup Moveworks for $2.85B. While ServiceNow is no stranger to acquisitions, this by far marked the largest price tag to date. Another four AI-related acquisitions have also been announced this year.
Just a short two months later came a bumper package of new AI product announcements at ServiceNow’s global annual conference: Knowledge 2025. This included the AI Control Tower, Apriel Nemotron 15B, AI Agent Fabric, and the brand-new ServiceNow CRM. Collectively, these form ‘The ServiceNow AI Platform’.
Then came July, when ServiceNow committed to investing $750M in Genesys, a leader in AI-powered customer experience orchestration. Off the back of this news, it also reported a surprisingly strong financial performance for Q2, largely down to the success of the company’s many new AI products.
By any reasonable metric, 2025 has been a great year for ServiceNow, with eye-catching new AI products, strong financial performance, and several high-profile acquisitions. There’s also a growing sense that the company is uniquely well-placed to benefit from the current AI boom. And, as you’d expect, these factors have all had a significant and noticeable impact on NOW’s value.
But not all price movements have been in the direction you might think. So why is this?
How Has NOW Performed in 2025?
2025 has certainly been a dynamic time for ServiceNow, but it’s also been a somewhat volatile time for the rest of the world. The effect of this can be clearly seen in the stock market, which has spent most of the year trying to predict and adapt to an economic climate that we’ll politely call ‘ever-changing’.
In short, this means there are a number of factors influencing the NOW price beyond the company itself. When it comes to the stock market, that’s just the name of the game. This means that the price hasn’t always gone up and down where you’d expect, given the announcements in the last section.
But before we get into that, let’s take a closer look at the highs and lows of NOW over the last year.
- December 12, 2025: The closing weeks of 2024 featured the highest NOW price ever recorded at the time: $1,148.42.
- January 2, 2025: On the first day of trading, NOW closed at a value of $1,054.34, its highest ever value at the start of a year. While somewhat down from its peak in December, this still remained an incredibly strong start to the year.
- January 28, 2025: Just a few weeks later, the stock reached its second all-time high in as many months, closing at $1,170.39. This can be attributed to a growing optimism around ServiceNow’s AI roadmap.
- April 4, 2025: After the highs of Q1, the situation got a little rockier amidst an increasingly volatile economic climate. The stock continued a steady decline over Q1 and bottomed out at $721.65 on April 4. Interestingly, the Moveworks acquisition seems to have contributed to this dip, as investors were reportedly worried about the size of the price tag and the complexity of integrating two companies of this scale.
- July 3, 2025: After Knowledge 2025, NOW quickly began to recover from the lows of April, peaking again at $1,044.69. This was largely a result of significant attention and optimism about the company’s AI roadmap after the conference.
- August 19, 2025: Through July and August, the stock steadily reduced again – though at a slower rate than in Q2. At the time of writing, NOW has hit $886.78, though it looks to be steadily rising once again.
Compared to the January peak of almost $1,200, this may seem a little low. But it’s worth remembering that NOW only passed the $850 mark for the first time in August 2024, after over a decade of trading. In historical terms, it remains high. But here’s the million-dollar question (for some, quite literally): How likely is it to stay that way?
Why Investors Are Buying NOW (And Why They’re Not)
To some extent, many of these movements can be written off as the arbitrary fluctuations of an unpredictable market. Even the best-performing stocks don’t go up every day. But the last few months have been particularly volatile for the US stock market, and you probably don’t need us to explain how or why. But in short, you can sum it up in two words: Tariffs and AI.
Today, the volatile global trade situation has made investors somewhat skittish. At the same time, AI developments are creating a huge amount of interest and attention in tech companies – but it’s not yet totally clear who the winners and losers will be.
In practice, this means that there are a number of factors at play pulling NOW in different directions:
Upwards Pressure: What’s Working in NOW’s Favor?
- AI strategy: ServiceNow is incredibly well-placed to benefit from the current boom in AI popularity. Its investments in agentic AI and a clear strategy to become the ‘AI operating system for enterprise’ clearly work in the company’s favor.
- Product roadmap: The various product releases announced at Knowledge 2025 also help create significant attention and optimism around ServiceNow’s future.
- Financial performance: Q2 revenue figures suggest that ServiceNow is outperforming its SaaS peers and has significant growth potential left.
Downward Pressure: Where Are The Key Challenges?
- Overvaluation fears: Despite strong financial performance, the uniquely high peaks at the end of 2024 and start of 2025 led some to believe the stock was overvalued.
- Moveworks acquisition: The multi-billion-dollar acquisition created some concern among investors, though this has reduced somewhat in recent months.
- Pricing model: Some investors are increasingly wary of SaaS companies that rely on a seat-based or per-user pricing model. The long-term profitability of this business model is in doubt when many expect that AI success will lead to reduced headcount.
- Economic volatility: More relevant to the broader stock market than ServiceNow specifically, but it’s always important to be aware of the economic context we find ourselves in.
What do the Analysts Say?
So what does this all mean for the future of NOW?
Well, if there were an easy answer to that question, the investors would have found it already. And since we’re neither financial analysts nor fortune tellers, we’re going to refrain from making any firm predictions here. But it is helpful to look through some recent comments from leading analysts that encapsulate the different factors at play here:
“NOW certainly has shown an uncanny ability to execute through even the toughest of times, which says a lot about their product differentiation amidst an already-high-quality software business model. That said, I continue to believe that the high valuation warrants caution as the stock may be more exposed to potential market downturns.”
Julian Lin, Financial Analyst, via Seeking Alpha
Julian Lin maintains that the fundamentals remain strong for ServiceNow, but reiterates that there are significant vulnerabilities remaining. He mentions the potential for overvaluation and also explains concerns about the wider SaaS and Generative AI markets more generally.
Conversely, a recent valuation from JMP Securities looks more optimistic. After seeing demonstrations of new ServiceNow products, the analysts remain confident that significant growth potential remains for the stock. In fact, the valuation included a growth target of $1,300, which is JMP Securities’ best current estimate for NOW’s performance in a year’s time.
What’s Next for NOW?
Most analysts agree that the fundamentals are strong for NOW and that it’s performed relatively well over the past few months, particularly given the challenging market we’re in. Realistically, the main difference here is whether the current performance represents a floor, a ceiling – or somewhere in between.
As ever with stocks, only time will tell. But when it does, we’ll make sure you know about it here first…