ServiceNow completed a 5-for-1 stock split in late 2025, with no further split planned. Current investor focus is on a $4 billion debt sale priced on May 15, 2026, which coincided with a 5.05% share price gain despite broader market weakness. The proceeds are primarily for refinancing debt from the company’s $7.75 billion acquisition of cybersecurity firm Armis Security.
The discussion around a ServiceNow stock split is settled, as the company executed a 5-for-1 split in December 2025. Market attention has now shifted to a major corporate financing event and its implications for the NOW stock forecast for 2026.
On May 15, 2026, ServiceNow priced a $4 billion multi-tranche debt offering. The same day, its shares rose 5.05% even as the S&P 500 index fell 1.24%.
The bond sale attracted over $38 billion in orders, allowing the company to secure favorable terms. Approximately $3.94 billion of the net proceeds will repay a bridge loan used for the $7.75 billion acquisition of Armis Security.
CEO Bill McDermott has been direct about the strategic rationale for the Armis deal. He stated that internal expectations exceed the public $30 billion subscription revenue target for 2030, calling it a “bear case.”
The company’s first-quarter performance showed subscription revenue of $3.67 billion, a 22% year-over-year increase. McDermott noted, “Our AI growth is far exceeding even our own expectations.”
COO Amit Zavery told Reuters that over half of new sales now come from usage-based pricing, marking a significant shift. Near-term risks include integration costs from the Armis deal and geopolitical delays that already impacted Q1 growth.
