New York, February 22, 2026, 11:27 (ET) — Market closed
- Palo Alto Networks closed Friday off 1.5% at $148.70. Shares ticked up slightly after the bell.
- Investors continue to parse a revised profit outlook, with acquisition integration expenses factoring into the mix.
- CyberArk’s debt repurchase moves have now penciled in March on the calendar.
Palo Alto Networks (PANW.O) finished Friday at $148.70, slipping 1.5%. A turbulent week for the cybersecurity firm has kept attention on the stock, and after-hours moves showed a modest 0.2% gain. (StockAnalysis)
This matters for Palo Alto right now, as the company works to persuade investors it can take on several sizable acquisitions without significantly eroding margins or cash flow. The stock has become something of a litmus test for the “platform” approach in cybersecurity—where a single provider covers more ground—during a period when corporate boards remain willing to spend to defend against rapidly evolving threats.
The company last week narrowed its fiscal 2026 adjusted profit outlook to $3.65–$3.70 a share—these figures strip out some costs, such as deal-related charges—even as it bumped up its revenue forecast to a range of $11.28 billion to $11.31 billion. For the fiscal third quarter, management is looking for adjusted profit of 78 to 80 cents per share, which fell short of what analysts told Reuters they had expected. Revenue guidance, though, came in ahead of the Street. (Reuters)
Palo Alto’s stock dropped 8% Wednesday after the company lowered its outlook, citing steeper integration expenses tied to its ongoing acquisition spree—most notably, the $25 billion CyberArk deal. “The profitability ‘cut’ is mostly due to the firm’s acquisitions,” Morningstar’s Malik Ahmed Khan wrote in a note seen by Reuters. (Reuters)
Here’s what traders are zeroed in on: will the stock stabilize when markets open, and will analysts hold off on trimming their short-term forecasts. Palo Alto still has to prove these deals can actually bring in cross-sell gains—otherwise, it’s just swelling the expense line.
Peers are set to show up on the tape Monday, despite the lack of an earnings spark. Investors aren’t wasting time drawing lines between Palo Alto’s acquisitive strategy and the tactics at CrowdStrike, Fortinet, and Zscaler. Growth and margins fluctuate for each, but all four end up measured against the same cost line.
The way forward isn’t straightforward. Integration sometimes drags out, sales cycles lengthen as products get bundled together, and renewed price competition often follows when customers use “platformization” as a bargaining chip during renewals.
Another deadline tied to the deal is coming up in March. On Feb. 19, Palo Alto announced a cash offer for all of CyberArk’s 0.00% convertible senior notes due 2030, following the acquisition’s close on Feb. 11. These notes can be swapped for shares under certain conditions. Holders need to let the company know by 5 p.m. New York time on March 20 if they want Palo Alto to buy back their notes before the March 24 repurchase date. The offer is for 100% of the principal plus any accrued special interest, according to the company. (paloaltonetworks.com)
