US EditionPalo Alto Networks to Acquire Chronosphere, Next-Gen Observability Leader, for the AI Era
Palo Alto Networks aims to strengthen cloud security and observability with the $3.35 billion acquisition of Chronosphere amid rising cyber threats and AI integration.
- On November 19, 2025, Palo Alto Networks said it will buy Chronosphere for $3.35 billion and will provide further acquisition details on its Q1 FY2026 earnings call.
- Built for the AI era, Chronosphere addresses the foundational need for constant uptime and resilience in modern AI data centers, providing real-time observability with cost-efficiency and reliability.
- Chronosphere reports ARR of over $160 million as of September 2025 and is recognized as a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms, serving two premier LLMs.
- Investors reacted by trimming the stock about 3% despite Palo Alto Networks beating fiscal Q1 estimates, while the company maintained Q2 revenue guidance of $2.57 billion–$2.59 billion and expects the acquisition to close in the second half of fiscal 2026.
- Palo Alto says combining Chronosphere with AgentiX will shift observability to AI-driven agentic remediation and unify data and security for modern applications and AI workloads.
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Palo Alto Networks acquires Chronosphere for $3.35B to expand its AI-powered cybersecurity stack - Tech Startups
Palo Alto Networks just made one of its biggest moves this year, agreeing to buy cloud observability startup Chronosphere for $3.35 billion. The deal signals a sharper push into AI-driven detection at a time when system failures and security blind […] The post Palo Alto Networks acquires Chronosphere for $3.35B to expand its AI-powered cybersecurity stack first appeared on Tech Startups.
CyberScoop
Palo Alto Networks to acquire observability firm Chronosphere for $3.35 billion
Palo Alto Networks announced Wednesday it will acquire Chronosphere, a cloud observability platform, for $3.35 billion in cash and equity, marking the cybersecurity company’s latest move to expand beyond its traditional security perimeter into adjacent infrastructure monitoring capabilities. The acquisition represents a significant bet on the convergence of security and operational observability as organizations grapple with increasingly complex…
Palo Alto to buy Chronosphere for $3.35 billion
Palo Alto said on Wednesday it will buy cloud management and monitoring company Chronosphere for $3.35 billion, as the cybersecurity firm looks to strengthen its AI offerings.The amount will be paid in cash and replacement equity awards, Palo Alto said. The deal is expected to close in the second half of fisc
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