Investing.com -- ServiceNow (NYSE:NOW) stock gained 0.5% in after-hours trading on Friday after shareholders approved a 5-for-1 stock split, following a 1.9% rise during the regular trading session.
The AI platform provider announced that shareholders "overwhelmingly approved" the stock split, which will take effect for shareholders of record as of December 16, 2025. Investors will receive four additional shares for each share held, with distribution scheduled after market close on December 17, 2025. Trading on a split-adjusted basis is expected to begin the following day.
ServiceNow shares closed the regular session at $854.36, up 1.9% for the day, before adding to those gains in after-hours trading following the stock split announcement.
The company, which bills itself as "the AI control tower for business reinvention," provides a platform that integrates with various cloud services and data sources to streamline enterprise workflows. According to the company, its platform processes more than 75 billion workflows annually, helping organizations transform fragmented operations into coordinated processes.
Stock splits don’t change a company’s fundamental value but can make shares more accessible to a broader range of investors by lowering the price per share.
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