Palo Alto Networks has agreed to amass Chronosphere for $3.35bn, with the intention of increasing its knowledge and safety choices for organisations dealing with AI workloads.
The deal phrases embody fee in money and substitute fairness awards, topic to changes.
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Chronosphere is an observability platform that helps large-scale cloud knowledge administration and is utilized by companies working main giant language fashions (LLMs).
The corporate reported annual recurring income exceeding $160m as of the top of September 2025.
Chronosphere co-founder and CEO Martin Mao mentioned: “We based Chronosphere to offer scalable resiliency for the world’s largest digital organisations. Palo Alto Networks is the right strategic accomplice for our prospects, companions, and workers.
“It permits us to mix our disruptive observability platform with the world’s greatest safety firm, accelerating our momentum in fixing essentially the most complicated knowledge and resiliency challenges.”
Upon completion of the acquisition, Palo Alto plans to combine Chronosphere’s structure with its Cortex AgentiX platform, aiming to offer what the agency describes as an autonomous remediation answer utilizing AI brokers.
This new strategy is meant to establish and tackle efficiency issues throughout in depth datasets and automate investigative and remedial actions.
Palo Alto chairman and CEO Nikesh Arora mentioned: “The foundational requirement for each fashionable AI knowledge middle is fixed uptime and resilience, which calls for real-time, always-on observability delivered on the proper price.
“Chronosphere was constructed to scale for the information calls for of the AI period from day one, which is why it’s chosen by main AI-native and born-in-the-cloud organisations.”
The deal is anticipated to shut within the second half of Palo Alto’ 2026 fiscal yr (FY 2026), topic to regulatory and customary closing situations.
In associated monetary information, Palo Alto reported complete income of $2.5bn for its first quarter of fiscal yr 2026, marking a 16% improve from $2.1bn in the identical interval final yr.
GAAP internet earnings stood at $334m or $0.47 per diluted share in contrast with $351m or $0.49 per diluted share within the prior yr interval.
Non-GAAP internet earnings reached $662m or $0.93 per diluted share versus final yr’s $545m or $0.78 per diluted share.
In July 2025, Palo Alto introduced a money and inventory settlement valued at roughly $25bn to amass id safety options supplier CyberArk.
Earlier in November 2025, shareholders of the Nasdaq-listed CyberArk accepted the transaction, which is anticipated to shut throughout Palo Alto’s H2 FY 2026, topic to regulatory approvals and different situations.
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