Palo Alto Networks has announced its plan to buy cloud management and monitoring company Chronosphere for 3.35 billion dollars as the cybersecurity major looks to strengthen its artificial intelligence offerings. The company said the deal will support its vision of expanding real time observability and autonomous incident investigation across modern digital environments.
The Santa Clara based firm will integrate Chronosphere with its Cortex AgentiX platform. This integration will allow the platform’s AI agents to analyse Chronosphere’s cloud data, identify performance issues and carry out autonomous root cause investigations. According to the company, customers will gain deeper visibility across security and observability data at petabyte scale while also benefiting from significant cost efficiencies driven by Chronosphere’s optimised data ingestion architecture.
The deal will be paid through cash and new equity that will replace existing awards. Sources said Palo Alto Networks is offering nearly twenty one times Chronosphere’s annual recurring revenue, which stood at more than 160 million dollars as of the end of September 2025. Palo Alto Networks recently announced another major acquisition in July when it agreed to buy identity security firm CyberArk Software for nearly 25 billion dollars. CyberArk’s shareholders approved the transaction last week. Both deals are expected to close in the second half of fiscal 2026.
Nikesh Arora, chairman and chief executive officer of Palo Alto Networks, said the future of AI powered infrastructure relies on uninterrupted performance supported by real time observability delivered at the right cost. He added, “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.”
Chronosphere co founder and chief executive officer Martin Mao said the company was created to bring scalable resiliency to large digital organisations. He said Chronosphere looks forward to working with global cloud and AI native customers as part of Palo Alto Networks to support mission critical observability and security needs.
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