Palo Alto Networks announced on November 19, 2025, that it will acquire Chronosphere, a next-generation observability platform, for $3.35 billion in cash and replacement equity awards. The deal unifies security and observability data into a single fabric designed for AI-era workloads.
Chronosphere reported annual recurring revenue exceeding $160 million as of September 2025, with triple-digit year-over-year growth. The company was named a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms.
According to CEO Nikesh Arora, the acquisition will combine Chronosphere’s architecture with Palo Alto Networks’ AgentiX platform to enable “real-time, agentic remediation” at petabyte scale, transforming observability from passive monitoring into autonomous issue resolution. The transaction is expected to close in the second half of Palo Alto Networks’ fiscal 2026, pending regulatory approval.
The deal follows Palo Alto Networks’ $25 billion agreement to acquire CyberArk announced in July 2025, reinforcing the company’s strategy of platform expansion through large-scale M&A.
