ServiceNow Buys Armis to Spur Revenue Growth as 2026 Subscription Outlook Rises to 22.5%
Updated
Updated · The Motley Fool · May 14
ServiceNow Buys Armis to Spur Revenue Growth as 2026 Subscription Outlook Rises to 22.5%
5 articles · Updated · The Motley Fool · May 14
ServiceNow said its April acquisition of cybersecurity firm Armis should accelerate long-term revenue, even as the deal adds near-term pressure on profitability.
22% first-quarter revenue growth and a raised 2026 subscription forecast of 22% to 22.5% helped offset concern after several large Middle East contracts were delayed by the Iran war.
$27.7 billion in remaining performance obligations, up 25% from a year earlier, points to a sizable pipeline as those delayed deals are expected to close later in 2026.
ServiceNow shares are still down 42% year to date and 56% over 12 months, leaving the stock near a 52-week low despite the stronger outlook.
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