Palo Alto Networks Closes $25B CyberArk Deal, Plans Q2 Earnings
Shares of Palo Alto Networks rose 4.79% this week to close at $166.95, though the stock remains down 9.36% year-to-date and 17.3% below last year’s levels. The company closed its $25 billion CyberArk deal and, following January’s $3.35 billion Chronosphere acquisition, will report Q2 fiscal 2026 earnings on February 17.
1. Weekly Stock Performance
In the past week, Palo Alto Networks shares climbed 4.79% from $159.32 to $166.95, outperforming both the S&P 500, which fell 1.29%, and the ETFMG Prime Cyber Security ETF, which gained 3.51%. Despite the weekly gain, the stock is down 9.36% year-to-date and 17.3% below year-ago levels.
2. $25B CyberArk Acquisition
On February 11, Palo Alto completed its $25 billion acquisition of CyberArk Software, paying $45 in cash plus 2.2005 Palo Alto shares per CyberArk share. This transaction, the second-largest acquisition of an Israeli company, integrates CyberArk’s Identity Security Platform into Palo Alto’s unified security offerings.
3. January Chronosphere Acquisition
In January, the company acquired cloud-native observability provider Chronosphere for $3.35 billion, bolstering its platform with real-time monitoring capabilities. These consecutive acquisitions underscore an aggressive push into adjacent security markets to address evolving AI-era cyber threats.
4. Upcoming Q2 Fiscal 2026 Earnings
Palo Alto will report Q2 fiscal 2026 results on February 17, with consensus estimates of $0.94 EPS on $2.58 billion in revenue, implying 16% earnings growth and 14.15% revenue growth year-over-year. Last quarter’s results exceeded forecasts, driven by a 29% increase in Next-Gen Security ARR to $5.9 billion.