ServiceNow: Strategic Armis Acquisition Strengthens Platform While Long-Term Growth Targets Remain Intact, Supporting Buy Rating

William Blair analyst Arjun Bhatia has reiterated their bullish stance on NOW stock, giving a Buy rating today.

Arjun Bhatia has given his Buy rating due to a combination of factors tied to ServiceNow’s strategic expansion and reinforced growth outlook. He views the Armis acquisition as a meaningful extension of ServiceNow’s platform, allowing the company to secure and manage both IT and operational/IoT assets through a unified configuration database. This broader asset visibility should deepen ServiceNow’s relevance in sectors such as healthcare, manufacturing, and government, where securing complex, mission-critical infrastructure is paramount. Although the deal size and uptick in M&A activity may prompt some investor caution, he sees Armis as a high‑quality, strategically important asset that strengthens ServiceNow’s overall value proposition beyond just security.

At the same time, Bhatia highlights that ServiceNow’s long-term growth algorithm remains intact despite the recent acquisitions of Armis and Moveworks. Management has reaffirmed its 2026 goals for subscription revenue and Now Assist ACV on an organic basis, signaling confidence that the core business can continue to grow robustly without relying on M&A. The added capabilities from Armis are expected to increase the importance of ServiceNow’s CMDB and support future innovations in areas such as AI-driven workflows. Taken together, the strategic fit of Armis and the unchanged, ambitious financial targets underpin his positive view and support a Buy recommendation on the stock.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $255.00 price target.