Overview
- Palo Alto will pay for Chronosphere in cash and replacement equity awards under a definitive agreement announced Wednesday.
- The transaction is targeted to close in the second half of Palo Alto’s fiscal 2026, subject to customary regulatory approvals.
- Palo Alto plans to integrate Chronosphere with its Cortex AgentiX platform so AI agents can detect issues, investigate root causes, and execute automated remediation.
- Chronosphere reported more than $160 million in annual recurring revenue as of September 2025 with triple-digit year-over-year growth, according to the companies.
- Separately, Palo Alto raised its fiscal 2026 outlook to $10.50–$10.54 billion in revenue and $3.80–$3.90 in adjusted earnings per share.