Palo Alto Networks to acquire Chronosphere

SANTA CLARA, Calif. — Palo Alto Networks (NASDAQ: PANW) has announced that it has entered into a definitive agreement to acquire Chronosphere, a next-generation observability platform built to scale for the AI era.

This acquisition proposes strengthening Palo Alto Networks' ability to help organizations navigate a world where modern applications and AI workloads demand a unified data and security foundation. Chronosphere was built precisely for these current needs: a next-generation architecture designed to scale for the AI era and handle vast cloud data volumes with cost-efficiency and reliability at the forefront.

"The foundational requirement for every modern AI data center is constant uptime and resilience, which demands real-time, always-on observability delivered at the right cost,” said Nikesh Arora, Chairman and CEO, Palo Alto Networks. “Chronosphere was built to scale for the data demands of the AI era from day one, which is why it is chosen by leading AI-native and born-in-the-cloud organizations. And once we leverage AgentiX with Chronosphere, we will take observability from simple dashboards to real-time, agentic remediation. We are excited to not just enter this space, but to disrupt it."

Combining Chronosphere's purpose-built, optimized architecture with Palo Alto Networks' AgentiX will transform the value proposition of observability from passive monitoring, to offering an autonomous remediation platform. The solution will deploy AI agents on the massive amounts of data monitored by Chronosphere's platform to not only detect performance issues, but also to autonomously investigate the root cause, and close the loop with agentic remediation.

"We founded Chronosphere to provide scalable resiliency for the world's largest digital organizations,” said Martin Mao, Co-founder and CEO, Chronosphere. “Palo Alto Networks is the perfect strategic partner for our customers, partners, and employees. "

Under the terms of the agreement, Palo Alto Networks will acquire Chronosphere for a total consideration of $3.35 billion, to be paid in cash and replacement equity awards, subject to adjustments. Chronosphere reports generating annual recurring revenue ("ARR") of over $160 million as of the end of September 2025, growing ARR triple-digits year-over-year. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in Palo Alto Networks' second half of fiscal 2026.