CyberArk Software shares are trading higher in Monday's after-hours session after Palo Alto Networks shares popped on better-than-expected earnings.

The proposed $25 billion acquisition reflects the growing importance of identity management — and would fill a crucial gap in the Palo Alto Networks portfolio.

Palo Alto stock popped on fiscal Q4 earnings that beat estimates and the cybersecurity firm's better-than-expected guidance for fiscal 2026.

Palo Alto Networks CEO Nikesh Arora talked about growth in security, enterprise browsers and more as adoption of cloud and AI positions the cybersecurity vendor well.

Palo Alto Networks on Wednesday said it would acquire CyberArk in a cash-and-stock cybersecurity deal that values the latter company at $25 billion.

Nir Zuk, Israeli founder of Palo Alto Networks and an IDF veteran, retires after 20 years. The cybersecurity visionary, who pioneered the next-gen firewall, hands off his CTO role to Lee Klarich, marking a new chapter for the company.

Palo Alto Networks forecast fiscal 2026 revenue and profit above analysts' estimates on Monday, betting on growing demand for its artificial intelligence-powered cybersecurity solutions, sending its shares up 5% in extended trading.

Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Must-Watch AI Stocks on Wall Street. On August 13, Deutsche Bank upgraded the stock to “Buy” from hold and raised its price target on the stock to $220 per share from $200.