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ServiceNow's Purchase of Armis Will Cut Into Margins

By Kim S. Nash

 

Hello. ServiceNow on Wednesday posted 22% revenue growth in the first quarter but projected the integration of Armis weighing on its margins this year to the tune of 75 basis points, WSJ reported. 

ServiceNow is working to build a complete cybersecurity platform to counter AI vulnerabilities. The company bought Armis, which provides tools for securing industrial and edge devices, for about $7.75 billion and expected to fund the deal through a combination of cash on hand and debt.

As WSJ Pro's James Rundle recently reported, AI is forcing a rethink in cybersecurity, prompting questions about whether some parts of the industry will survive. 

More news: 

  • Plankey drops out of the running for CISA director
  • House committee proposes national data-privacy bill
  • China's answer to Anthropic's Mythos
 

‏‏‎ ‎

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More Cyber News

PHOTO: MATTIE NERETIN/ZUMA PRESS

CISA chief nominee Sean Plankey drops out. “After thirteen months since my initial nomination, it has become clear the Senate will not confirm me,” Plankey said in a letter to the White House on Wednesday. President Trump nominated Plankey to lead the Cybersecurity and Infrastructure Security Agency after Jen Easterly left the post as the new administration took over. (Politico)

  • Sen. Rick Scott (R., Fla.) held up Plankey's confirmation over a shipbuilding project involving a company in his state. 
  • CISA has been without a full-time, permanent director since January 2025 and agency funding and staff have been cut drastically.
  • Related reading from WSJ Pro: Federal Cyber Cuts Could Pose Future Security Challenges

U.S. lawmakers propose national data-privacy bill. The Secure Data Act, pitched Wednesday by House Republicans, would limit the data companies can gather on individuals and give consumers rights to opt out of collection for advertising and automated decision making. (CyberScoop)

  • The legislation would preempt state privacy laws. Unlike data-privacy laws in states such as California, the national version wouldn't give consumers the right to sue organizations for violations.

China's answer to Anthropic's Mythos: A Chinese cyber company called 360 Digital Security Group launched an AI tool for finding software vulnerabilities. The move has raised concerns that the Chinese government could use 360's findings in hacking and espionage campaigns, said Eugenio Benincasa, an analyst at research group Natto Thoughts, which tracks cybersecurity developments in China. (Bloomberg)

  • Microsoft plans to use Anthropic's Mythos in its secure software development program. (Reuters)
 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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