"Although not all acquisitions have been finalized yet, the integration work has begun. Investors seem concerned about the costs, especially now that Palo Alto itself has lowered its annual profit forecast. The stock fell six percent even before the market opened on Wall Street, Reuters reports. In particular, the acquisition of CyberArk for $25 billion appears to be generating significant costs on top of that amount. As a one-stop shop for security issues, Palo Alto is attempting to fully integrate its offerings,"
"Palo Alto lowered its expected adjusted earnings per share for 2026 to $3.65 to $3.70. Previously, the company had expected $3.80 to $3.90. However, the revenue forecast was raised from $10.50-10.54 billion to $11.28-11.31 billion. Nevertheless, analysts are optimistic about the share price. Morningstar analyst Ahmed Khan argues that, thanks to the acquisitions, the company will eventually be able to provide existing customers with additional solutions to increase revenue."
Palo Alto Networks acquired Protect AI, CyberArk, Chronosphere, and Koi Security between July 2025 and February 2026 and has begun integration work. Integration started before all deals were finalized, raising significant costs and investor concern as adjusted 2026 EPS guidance fell to $3.65–$3.70 from $3.80–$3.90 while revenue guidance increased to $11.28–$11.31 billion. The stock dropped six percent premarket amid worries over acquisition-related expenses; integration charges reached $2.3 billion in the third fiscal quarter. Deal prices include $25 billion for CyberArk, $3.35 billion for Chronosphere, $500 million for Protect AI, and an estimated $400 million for Koi. Analysts expect platformization and cross-selling, especially in endpoint and identity security, to boost future revenue.
Read at Techzine Global
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