Palo Alto's Software Acquisitions Under Question -- Market Talk

Dow Jones

Feb 19

1136 ET - Palo Alto Networks' stock price decline after its 2Q print reflects lowered free cash flow expectations for 2026, as well as guidance that the acquisitions of CyberArk and Chronosphere are adding just about $1.5 billion in annual recurring revenue compared to a nearly $30 billion capital outlay, Raymond James analysts write in a note. "This was essentially a levered bet on software right ahead of a significant meltdown in valuations," they write. Still, Palo Alto's effective capital outlay was closer to $20 billion due to the broader decline in software stocks, and they see cybersecurity as more insulated from AI displacement than other SaaS businesses. "Our proprietary checks have been positive on the strategic merits of the CyberArk acquisition in particular," they add. "We intend to let the dust settle." Shares fall 6.1%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 18, 2026 11:36 ET (16:36 GMT)

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Still, Palo Alto's effective capital outlay was closer to $20 billion due to the broader decline in software stocks, and they see cybersecurity as more insulated from AI displacement than other SaaS businesses. \"Our proprietary checks have been positive on the strategic merits of the CyberArk acquisition in particular,\" they add. \"We intend to let the dust settle.\" Shares fall 6.1%. (elias.schisgall@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 18, 2026 11:36 ET (16:36 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Palo Alto's Software Acquisitions Under Question -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPalo Alto's Software Acquisitions Under Question -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-02-19 00:36</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1136 ET - <a href=\"https://laohu8.com/S/PANW\">Palo Alto Networks</a>' stock price decline after its 2Q print reflects lowered free cash flow expectations for 2026, as well as guidance that the acquisitions of CyberArk and Chronosphere are adding just about $1.5 billion in annual recurring revenue compared to a nearly $30 billion capital outlay, Raymond James analysts write in a note. \"This was essentially a levered bet on software right ahead of a significant meltdown in valuations,\" they write. Still, Palo Alto's effective capital outlay was closer to $20 billion due to the broader decline in software stocks, and they see cybersecurity as more insulated from AI displacement than other SaaS businesses. \"Our proprietary checks have been positive on the strategic merits of the CyberArk acquisition in particular,\" they add. \"We intend to let the dust settle.\" Shares fall 6.1%. (elias.schisgall@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 18, 2026 11:36 ET (16:36 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2023250843.SGD","symbol_name":"Allianz Thematica Cl AT Acc H2-SGD","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2612447988","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2612447988","pubTimestamp":1771432560,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1136 ET - Palo Alto Networks' stock price decline after its 2Q print reflects lowered free cash flow expectations for 2026, as well as guidance that the acquisitions of CyberArk and Chronosphere are adding just about $1.5 billion in annual recurring revenue compared to a nearly $30 billion capital outlay, Raymond James analysts write in a note. \"This was essentially a levered bet on software right ahead of a significant meltdown in valuations,\" they write. Still, Palo Alto's effective capital outlay was closer to $20 billion due to the broader decline in software stocks, and they see cybersecurity as more insulated from AI displacement than other SaaS businesses. \"Our proprietary checks have been positive on the strategic merits of the CyberArk acquisition in particular,\" they add. \"We intend to let the dust settle.\" Shares fall 6.1%. 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Still, Palo Alto's effective capital outlay was closer to $20 billion due to the broader decline in software stocks, and they see cybersecurity as more insulated from AI displacement than other SaaS businesses. \"Our proprietary checks have been positive on the strategic merits of the CyberArk acquisition in particular,\" they add. \"We intend to let the dust settle.\" Shares fall 6.1%. (elias.schisgall@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 18, 2026 11:36 ET (16:36 GMT)\n\n\n  Copyright (c) 2026 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}