ServiceNow (NOW)'s Armis. Acquisition is Important, Says Jim Cramer

We recently published 10 Stocks on Jim Cramer’s Radar.  ServiceNow, Inc. (NYSE:NOW) is one of the stocks on Jim Cramer's radar.

Enterprise workflow management software services provider ServiceNow, Inc. (NYSE:NOW) announced an important deal the day this show was aired, as it announced that it would acquire cybersecurity firm Armis for a $7.5 billion price tag. Throughout 2025, Cramer has maintained that the cybersecurity sector continues to be attractive in the broader software industry as it benefits from national security tailwinds and the growth in data usage stemming from AI. Earlier in the month, Bernstein had maintained a $1,093 share price target for ServiceNow, Inc. (NYSE:NOW) and assigned an Overweight rating to the shares. As reports of the merger made rounds in markets ahead of the official announcement and led to weakness in the shares, the financial firm commented that channel checks indicated demand acceleration and the selloff hinted at undervaluation. After the deal was announced, Cramer was unsurprisingly optimistic, given his thoughts surrounding the cybersecurity sector:

“No, and this is very important, because, ServiceNow, is in many ways, very important within the organization. Whenever they get in, but they haven’t been strong in something that everybody wants, which is cybersecurity. And this is, I think, integral to the suite, to a platform that you have. ServiceNow going beyond, just a vertical of IT and going to a platform. That’s what everybody is doing. And I think it’ll be important, because the compression of the price-to-earnings multiple for ServiceNow is huge.”

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Disclosure: None. This article is originally published at Insider Monkey.