Palo Alto Highlights Strong Quarter And Pushes Ahead With Cybersecurity Acquisitions

Benzinga

Palo Alto Networks topped Q1 expectations with $2.47B in revenue and $0.93 adjusted EPS, then dropped a major move: a $3.35B deal to acquire Chronosphere. The company is also pursuing a $25B acquisition of CyberArk as it races to stay ahead of rapid AI-driven shifts in security. Revenue grew 16% YoY, though net income slipped to $334M. Palo Alto guided Q2 sales to $2.57–$2.59B and full-year revenue to ~$10.5B.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Palo Alto Networks beat first quarter expectations and announced a $3.35 billion deal to acquire

00:07Chronosphere, according to CNBC. Cybersecurity company reported adjusted earnings of 93 cents

00:12per share and revenue of $2.47 billion, slightly above Wall Street estimates. Revenue rose 16%

00:18from a year ago, while an income declined to $334 million, or 47 cents per share. Palo Alto

00:24expects its Chronosphere acquisition to close in the second half of fiscal 2026. It is also

00:29pursuing a $25 billion purchase of Israeli identity security firm CyberArk. CEO Nikesh

00:35Arora said the dual deals are intended to keep pace with rapid shifts in the AI cycle. Palo Alto

00:40guided second quarter revenue to $2.57 billion to $2.59 billion, and full-year revenue to

00:46$10.50 billion to $10.54 billion. For all things money, visit Benzinga.com.

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