NEW YORK, January 26, 2026, 16:19 EST — After-hours
- Palo Alto Networks shares climbed roughly 2.2% to $184.19 late Monday, fluctuating between $179.88 and $185.59 during the session.
- Shares of cybersecurity rivals CrowdStrike, Fortinet and Zscaler also climbed.
- Attention shifts to the Federal Reserve’s rate decision on Wednesday and its implications for pricey software stocks.
Palo Alto Networks (PANW) climbed roughly 2.2% to $184.19 in late Monday trading, following a broader uptick in cybersecurity stocks. The stock fluctuated between $179.88 and $185.59, with about 5.3 million shares traded.
The rise in U.S. stocks came ahead of this week’s Federal Reserve decision and a slew of big-tech earnings reports. “Communications and technology sectors are performing strongly today,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management, “as investors anticipate earnings from many major companies.” (MarketScreener)
Cyber risk stayed in the headlines. Nike announced it is looking into a possible data breach after a ransomware group said it had leaked a large amount of company data — though Reuters could not confirm the claim. (Reuters)
Other security stocks followed suit. CrowdStrike jumped roughly 3.5%, Fortinet gained around 1.8%, and Zscaler increased about 2.2%.
For Palo Alto, today’s gain doesn’t settle the bigger question: are customers funneling their security spend into fewer platforms or spreading it across various tools? That story plays out over time—in renewals and subscription growth—not in one trading day.
The company last reported in November, highlighting strong momentum in its newer product lines. CEO Nikesh Arora said at the time, “Our strong start to the fiscal year was marked by excellent results across all metrics.” It projected second-quarter revenue between $2.57 billion and $2.59 billion. The firm also posted next-generation security annual recurring revenue — a key subscription-sales metric — of $5.9 billion. (Palo Alto Networks)
Deals come with both opportunity and risk. In November, Palo Alto announced plans to acquire cloud monitoring company Chronosphere for $3.35 billion. That deal, along with its earlier CyberArk acquisition, is slated to close in the second half of fiscal 2026. (Reuters)
Yet these stocks tend to slam the brakes hard at the first sign of guidance slips, particularly when interest-rate forecasts move. Large acquisitions often serve as a distraction, and the integration process typically drags on longer—and costs more—than investors expect.
Wednesday brings the next key event: the Fed’s policy statement drops at 2:00 p.m. Eastern, followed by Chair Jerome Powell’s remarks at 2:30 p.m. (Federalreserve)
