1409 ET - Investors reacted negatively to the first reports of ServiceNow's acquisition of Armis because they saw the deal as an admission that seat-based software models could face headwinds from AI-fueled headcount reductions, say Truist analysts. But that interpretation is off-base, the analysts say. A near-term dropoff in headcount is unlikely, while customers that did cut staff in 2025 "indicated that their overall ServiceNow spend did not decrease as a result, as they found new use cases to put NOW budget dollars to work in," the analysts say. "We see this acquisition as increasing the potential use cases for those budget dollars in the event of future headwinds." (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

December 24, 2025 14:09 ET (19:09 GMT)

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