Why Stock-Split Stock ServiceNow Slumped in 2025

Core Insights - ServiceNow has experienced a significant decline in stock performance, with a nearly 28% drop in 2025, reflecting investor skepticism despite positive developments [1][6] - The company's stock split and high-profile acquisition did not generate the expected investor interest, indicating a lack of confidence in the stock [2][7] Financial Performance - In the first quarter of 2025, ServiceNow reported a 19% year-over-year increase in overall revenue, reaching just under $3.1 billion, and net income of $846 million, exceeding analyst expectations [5] - Despite initial positive momentum from earnings, the stock price began to decline in the second half of the year, even after a brief increase following the stock split announcement [6] Product Developments - ServiceNow launched significant updates to its AI-enhanced platform in 2025, including the Yokohama upgrade, which transitioned the platform to more autonomous AI functionalities [3][4] - A subsequent upgrade, named Zurich, was also announced later in the year, further enhancing the platform's capabilities [4] Acquisition Impact - The company announced its largest acquisition to date, the all-cash purchase of cybersecurity firm Armis for nearly $7.8 billion, which raised concerns among investors regarding the valuation [7] - The acquisition is expected to enhance the attractiveness of ServiceNow's platform, particularly in addressing security concerns for clients [9]