ServiceNow Denies Decagon Acquisition Interest – Analyst Says Investors Wary After NOW’s M&A Spree

• Jefferies reiterated its Buy rating and $140 price target on NOW.
• ServiceNow has announced more than $11 billion in acquisitions since 2025.
• The company is scheduled to report third-quarter results on Oct. 28.

ServiceNow Inc. (NOW) on Tuesday denied reports that it was interested in acquiring conversational AI startup Decagon, even as investors remain wary of the software company’s acquisition strategy following more than $11 billion in recent deals.

“We are aware of misinformation in the market today about our acquisition strategy. To be clear, ServiceNow has no interest or intention of purchasing Decagon,” Amit Zavery, the company’s president, chief product officer and chief operating officer, said in a statement.

The denial followed a Business Insider report that Decagon, an AI startup focused on automating customer service, had held preliminary acquisition discussions with ServiceNow and other potential buyers.

Following the report, Jefferies reiterated its ‘Buy’ rating and $140 price target on ServiceNow stock. Analyst Samad Samana said the stock's initial negative reaction was unsurprising, given investor concerns about large acquisitions after the company’s recent M&A activity.

However, the analyst noted that Decagon could strengthen ServiceNow’s customer service management offering, which is a key growth engine for the business.

ServiceNow shares fell 1.22% to close at $138.61 on Tuesday. They gained 1% in the overnight session ahead of Wednesday’s session.

ServiceNow’s Acquisition Spree

ServiceNow has announced several multibillion-dollar acquisitions since 2025 as it expands its AI, customer relationship management (CRM) and cybersecurity capabilities.

In December 2025, the company agreed to acquire cybersecurity firm Armis for $7.75 billion in cash. The deal closed in April 2026 and is expected to expand ServiceNow’s security and risk business.

In December 2025, ServiceNow also agreed to acquire identity security company Veza for approximately $1.25 billion. The deal closed in March 2026.

Earlier in 2025, ServiceNow acquired AI assistant and enterprise search company Moveworks for approximately $2.85 billion. ServiceNow also acquired Logik.io, an AI-powered sales software provider for $506 million.

Retail View On NOW, Earnings Expectation

On Stocktwits, the retail sentiment for NOW remained ‘bearish’ for a second day. “$NOW Buy this stock when AI stocks crash. Sell when they rally. It is a rotation sector,” said a trader.

ServiceNow is scheduled to report its third-quarter results on Oct. 28. Revenue is expected to rise 20% to $4.09 billion and adjusted profit is expected to increase 6% to $1.02 per share, per Koyfin.

NOW stock is down 9.5% year to date.

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