By Juby Babu
(Reuters) -Palo Alto Networks mentioned on Wednesday it’s going to purchase cloud administration and monitoring firm Chronosphere for $3.35 billion, because the cybersecurity agency seems to be 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Palo Alto can pay the deal quantity in money and new fairness to substitute outdated awards.
Shares of Palo Alto have been down greater than 3% after the bell.
Chronosphere’s price ticket and asserting the acquisition earlier than closing the CyberArk deal are doubtless weighing on the shares, DA Davidson analyst Rudy Kessinger mentioned.
Palo Alto can pay almost 21 occasions Chronosphere’s annual recurring income, which was greater than $160 million as of the tip 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 authorized 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 sort out 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, larger 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 akin to Palo Alto.
For the primary quarter ended October 31, income grew 15.6% to $2.47 billion, largely in keeping with the common of analysts’ estimates, in accordance with knowledge compiled by LSEG.
(Reporting by Juby Babu in Mexico Metropolis; Enhancing by Alan Barona and Leroy Leo)
