Shares of Palo Alto Networks rose 4.2% to close at $166.00 on Monday, buoyed by positive momentum in the technology sector and growing anticipation surrounding the imminent closure of its acquisition of identity security firm CyberArk. The stock held steady in after-hours trading.
Merger Timeline and Terms
According to a Nasdaq notice, the $25 billion transaction is provisionally scheduled for completion prior to the opening of trading on Tuesday, February 11. Trading in CyberArk shares is expected to be halted after the session concludes on Tuesday, February 10. Under the terms of the agreement, CyberArk shareholders will receive $45 in cash plus 2.2005 shares of Palo Alto Networks for each share they own.
The broader market provided a tailwind for cybersecurity stocks, with the S&P 500 index climbing 0.47%. Peers including Fortinet, CrowdStrike, and Cisco also posted gains for the day.
Analyst Perspectives
Wall Street analysts offered mixed views. Morgan Stanley reiterated its positive stance, naming Palo Alto Networks its top cybersecurity pick for exposure to generative artificial intelligence trends, citing several AI-related tailwinds that could boost security demand. Conversely, Barclays reduced its price target on the stock to $200 from $230, though it maintained an overweight rating, indicating it still expects the shares to outperform.
The company announced the agreement to acquire Israel-based CyberArk in July, aiming to bolster its capabilities in the identity security market. At the time, management targeted a close in the second half of fiscal 2026.
Focus Shifts to Earnings
With the merger process reaching its final stages, investor attention is now turning to Palo Alto Networks' upcoming financial results. The company is scheduled to report its fiscal second-quarter earnings after the U.S. market closes on Monday, February 17, followed by a webcast at 4:30 p.m. ET.
Traders will be closely monitoring management's commentary on demand trends, as well as any initial details regarding the integration costs and strategic execution plans related to the CyberArk acquisition.
