New York, Feb 9, 2026, 2:30 PM EST — The regular session is underway.
- Palo Alto Networks shares climbed in the afternoon, with investors zeroing in on a Nasdaq notice that detailed the CyberArk merger timeline.
- CyberArk shares moved higher, and after-hours trading will be halted on Feb. 10 as the anticipated closing approaches.
- Deal terms and Palo Alto’s Feb. 17 quarterly numbers are in focus, with traders looking for early signals on integration and demand.
Palo Alto Networks shares gained Monday after a Nasdaq Trader update laid out a provisional timeline for the company’s acquisition of CyberArk. The notice puts the merger’s expected closure just before the market opens on Feb. 11. CyberArk stock is set to halt trading after-hours on Feb. 10 around 7:50 p.m., with suspension following on Feb. 12. Each CyberArk shareholder stands to get $45 in cash plus 2.2005 Palo Alto shares for every CyberArk share held. 1
The timing is crucial here — a deal that’s been in the works suddenly becomes something traders have to act on right away. For deal-arb funds, that means jumping in around those key dates: they’ll typically buy shares of the target, short the acquirer, and try to pocket the spread. This kind of positioning can really crank up volatility for both stocks.
Investors end up pricing the stock leg with less room for error. Because CyberArk holders’ payout tracks Palo Alto’s share movements, shifts in PANW’s price can instantly alter what the deal is really worth.
Palo Alto Networks climbed 3.4% to $164.81 by the afternoon. Shares started the day at $159.34, dipping to $156.55 at one point, according to market data.
CyberArk climbed 4.0%, finishing at $407.38.
The merger calls for Palo Alto to issue fresh shares to seal the deal, a detail that’s made some investors nervous over potential dilution — more shares in the mix can drag on earnings per share. Still, some argue the combination strengthens Palo Alto’s hand in identity security, a segment right at the heart of enterprise breach risks.
Palo Alto and CyberArk unveiled their agreement back in July 2025, putting a roughly $25 billion price tag on CyberArk. The move was billed as Palo Alto’s official foray into identity security. 2
Beyond the deal, software stocks have been bouncing around in a volatile market. Morgan Stanley’s equity strategy head, Mike Wilson, said in a note Monday that “fundamental tailwinds remain in place for the AI enabler complex,” following last week’s pronounced swings in tech. 3
But that timing isn’t set in stone. Nasdaq has described the closing as tentative. Any hang-up—whether it’s regulatory, operational, or just procedural—could rattle the spread and take a toll on both stocks. The deal consideration still tracks, in part, Palo Alto’s share price.
Investors are turning their attention to Palo Alto, which is set to report its fiscal second-quarter numbers after U.S. markets wrap up on Feb. 17. They’ll be watching for signs of shifting demand, plus any fresh details from management on how the CyberArk integration is shaping up. 4
