CyberArk shares jump as much as 18% on report of Palo Alto Networks takeover talks
Representatives of the two companies didn't immediately respond to requests for comment.
Cloud security is becoming an increasingly critical piece of the enterprise tech stack, especially as rapid advancements in artificial intelligence bring with them a whole new set of threats, and as ransomware attacks become more commonplace.
Founded in 2005, Palo Alto Networks has emerged in recent years as a consolidator in the cybersecurity industry and has grown into the biggest player in the space by market cap, with a valuation of over $130 billion. CEO Nikesh Arora, who was appointed to the job in 2018, has been on a spending spree, snapping up Protect AI in a deal that closed in July, and in 2023 buying Talon Cyber Security, Dig Security and Zycada Networks.
But Cyberark would represent by far Arora's biggest bet yet. The Israeli company, which went public in 2014, provides technology that helps companies streamline the process of logging on to applications for employees.
Cyberark faces competition from Microsoft, Okta and IBM's HashiCorp. Another rival, SailPoint, returned to the public markets in February.
With Tuesday's rally, Cyberark shares climbed to a record, surpassing their prior all-time high reached in February. The stock is up 29% this year, pushing the company's market cap to almost $21 billion, after jumping 52% in 2024. Palo Alto shares, meanwhile, slid 3.5% on the report and are now up about 9% for the year.
Representatives from Palo Alto Networks and Cyberark didn't immediately respond to requests for comment.
During the first quarter, Cyberark generated around $11.5 million in net income on around $318 million in revenue, which was up 43% from a year earlier.
It's been an active stretch for big deals in the cyber market. Google said in March that it was spending $32 billion on Wiz, its largest acquisition on record by far, and a purchase intended to bolster its cloud business with greater AI security technology.
Networking giant Cisco also made its biggest deal ever in the security space, buying Splunk in 2023 for $28 billion. Splunk's technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 hours ago
- Yahoo
Evercore Maintains Bullish Stance on Palo Alto (PANW) as Investors Look Past CyberArk Deal
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the . On August 12, Evercore ISI analyst Peter Levine reiterated an Outperform rating on the stock with a $220.00 price target. According to the firm, investors are expected to focus primarily on Palo Alto Networks' initial fiscal year 2026 guidance. There is going to be less emphasis on the pending Cyberark acquisition, which is unlikely to receive significant commentary at this stage. Evercore ISI also expects FY26 guidance to come in slightly below Wall Street estimates. However, this has already been signaled and won't be surprising. Investor sentiment remains muted, but the firm holds its optimistic outlook toward the stock. "In terms of expectations for the FY26 guide, we took down our FY rev from 13.7% to 12.3%. With PANW tempering expectations over the course of the quarter, a below-consensus FY26 guide would be in line with recent signaling/should not come as a surprise. In terms of the quarter, sentiment appears more subdued relative to prior quarters, reflecting the modest revenue and ARR guide upside observed so far in FY25. " A financial analyst poring through documents and data, seeking an edge in the market. "Recent investor conversations show low conviction and no clear bogey, as top-line beats have averaged just 1% in F1Q–F3Q. A 15% top-line print would likely suffice. We would expect product upside, supported by stronger product results from both CHKP & FTNT. From an NGS ARR lens, the bogey stands at ~32.5% y/y, or $500mn net new ARR, vs. the midpoint of the guide of +31.4% (+$460mn in net new). Our core L/T thesis on PANW remains intact. With the stock down ~18% since the deal announcement, we believe that, for investors with a multi-quarter view, we see meaningful upside from these levels, and our initial work suggests the strategic rationale for CYBR will ultimately prove sound." Palo Alto Networks, Inc. (NASDAQ:PANW) is a leader in AI-powered cybersecurity. While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
19 hours ago
- Business Insider
Palo Alto Networks (PANW) Is About to Report Q4 Earnings Tomorrow. Here Is What to Expect
Cybersecurity company Palo Alto Networks (PANW) is scheduled to announce its results for the fourth quarter of Fiscal 2025 after the market closes on Monday, August 18. PANW stock has declined 3% so far this year due to investor concerns over its recent $25 billion CyberArk acquisition, slowing revenue growth, and mixed Q3 earnings reactions. Wall Street analysts anticipate that the company will report earnings of $0.89 per share, reflecting a 17% year-over-year increase. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Meanwhile, revenues are expected to rise by 14% from the same quarter last year, reaching $2.5 billion, according to data from the TipRanks Forecast page. It's interesting to note that PANW has surpassed the consensus EPS estimates in all of the last nine quarters. Analyst's Views Ahead of PANW's Q4 Earnings Ahead of Palo Alto's Q4 print, Rosenblatt Securities analyst Catharine Trebnick cut the price target to $215 from $235 while maintaining a Buy rating. The analyst expects growth to be fueled by steady momentum across software firewalls, firewall refresh cycles, and continued uptake of its AI-powered Security Operations platforms, such as XSIAM. She also pointed to early traction for the new Prisma Access Browser as enterprises seek to secure GenAI applications and browser-based workflows. For fiscal 2025, Rosenblatt forecasts revenue growth above the company's 14.5% guidance, supported by strong renewal activity and larger multi-product agreements. The firm also expects stronger margins and another earnings beat, in line with PANW's record of topping estimates in recent quarters. Options Traders Anticipate a Large Move Using TipRanks' Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don't worry; the Options tool does this for you. Indeed, it currently says that options traders are expecting a 7.97% move in either direction. Is PANW Stock a Buy or Sell? PANW stock price target of $215.73 indicates 21.82% upside potential.
Yahoo
a day ago
- Yahoo
What To Expect From Palo Alto Networks's (PANW) Q2 Earnings
Cybersecurity platform provider Palo Alto Networks (NASDAQ:PANW) will be announcing earnings results this Monday after market hours. Here's what investors should know. Palo Alto Networks beat analysts' revenue expectations by 0.5% last quarter, reporting revenues of $2.29 billion, up 15.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts' EBITDA estimates but full-year revenue guidance meeting analysts' expectations. Is Palo Alto Networks a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Palo Alto Networks's revenue to grow 14.2% year on year to $2.50 billion, improving from the 12.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Palo Alto Networks has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 0.8% on average. Looking at Palo Alto Networks's peers in the cybersecurity segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Varonis Systems delivered year-on-year revenue growth of 16.7%, beating analysts' expectations by 2.8%, and Qualys reported revenues up 10.3%, topping estimates by 1.7%. Varonis Systems traded up 5.3% following the results while Qualys's stock price was unchanged. Read our full analysis of Varonis Systems's results here and Qualys's results here. The euphoria surrounding Trump's November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the cybersecurity stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.5% on average over the last month. Palo Alto Networks is down 9.3% during the same time and is heading into earnings with an average analyst price target of $212.12 (compared to the current share price of $177.48). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
