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By Juby Babu
(Reuters) -Palo Alto Networks stated on Wednesday it is going to purchase cloud administration and monitoring firm Chronosphere for $3.35 billion, because the cybersecurity agency appears to strengthen its AI choices.
The Santa Clara, California-based firm plans to combine Chronosphere with Cortex AgentiX platform, permitting use of its AI brokers on the cloud administration agency’s knowledge to detect efficiency points and autonomously examine their root trigger.
Palo Alto can pay the deal quantity in money and new fairness to substitute previous awards.
Shares of Palo Alto had been down greater than 3% after the bell.
Chronosphere’s price ticket and saying the acquisition earlier than closing the CyberArk deal are probably weighing on the shares, DA Davidson analyst Rudy Kessinger stated.
Palo Alto can pay almost 21 instances Chronosphere’s annual recurring income, which was greater than $160 million as of the top of September 2025.
The corporate introduced the acquisition of identification safety agency CyberArk Software program for about $25 billion in July. Whereas CyberArk’s shareholders accepted the acquisition final week, each the offers are anticipated to shut within the second half of fiscal 2026.
Individually, Palo Alto raised its annual income and revenue forecasts on expectations of a surge in demand for its cybersecurity options to deal with rising on-line threats.
For fiscal 2026, Palo Alto now sees income within the vary of $10.50 billion to $10.54 billion, in contrast with its earlier outlook of $10.48 billion to $10.53 billion.
It expects annual adjusted revenue per share of $3.80 to $3.90, increased than the $3.75 to $3.85 it had forecast earlier.
Cybersecurity spending has remained resilient, underpinned by threats from nation-state actors and more and more refined ransomware assaults, benefiting firms comparable to Palo Alto.
For the primary quarter ended October 31, income grew 15.6% to $2.47 billion, largely in step with the common of analysts’ estimates, in keeping with knowledge compiled by LSEG.
(Reporting by Juby Babu in Mexico Metropolis; Enhancing by Alan Barona and Leroy Leo)
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