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Palo Alto Networks Cuts Annual Profit Forecast as Deal Costs Bite, Shares Fall
Palo Alto Networks aims to enhance endpoint security with AI-driven malware detection by acquiring Koi Security, estimated at $400 million, expanding its Israeli market presence.
- On February 17, 2026, Palo Alto Networks signed a definitive agreement to acquire Koi Security, Globes reported.
- Koi built an engine using LLMs and AI agents to detect malware and vulnerabilities, advancing Palo Alto Networks’ Israel strategy less than a week after its $25 billion CyberArk acquisition.
- No financial terms were disclosed, though Globes reported the price at about $400 million; Koi had raised only $48 million, benefiting founders Amit Assaraf, Idan Dardikman, Itay Kruk, Battery Ventures, and NFX.
- Ahead of quarterly results due after the close, shares of Palo Alto Networks fell around 7% in extended trading on February 17, 2026, after trimming its profit forecast.
- Following CyberArk and Chronosphere buys, Palo Alto aims to enhance Prisma AIRS and Cortex XDR, with Arora noting 'platformizations, a trend that is accelerating due to AI.
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Why Palo Alto Networks (PANW) Is Really Down 6.5% This Morning
Quick Read Palo Alto Networks (PANW) beat Q2 adjusted EPS but guided Q3 profit 15% below consensus. Shares dropped 6.5% on the miss. Palo Alto announced 500 job cuts and a $400M acquisition of Koi for AI security. Integration costs from M&A are pressuring margins. Palo Alto shares are down 16% year to date as margin pressure builds in competitive cybersecurity. You can earn up to $1,500 in cash bonuses just for moving your savings; see how t…
·New York, United States
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Palo Alto Networks cuts annual profit forecast as deal costs bite, shares fall
Palo Alto Networks trimmed its annual profit forecast on Tuesday, signaling rising costs from recent acquisitions to enhance AI capabilities, sending the cybersecurity company's shares down around 7% in extended trading.
·United Kingdom
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Coverage Details
Total News Sources23
Leaning Left1Leaning Right1Center9Last UpdatedBias Distribution82% Center
Bias Distribution
- 82% of the sources are Center
82% Center
C 82%
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