Palo Alto Networks is acquiring Chronosphere, a company that specializes in the management and monitoring of cloud environments, for $3.35 billion in cash and stock to replace existing allocations. The deal remains subject to regulatory approvals.
Chronosphere, founded in 2019 and based in New York, provides a platform designed to handle very large volumes of cloud data. Its annual recurring revenue exceeded $160 million by the end of September 2025.
Chronosphere will be integrated into Palo Alto’s Cortex AgentiX platform to apply AI agents to the collected data in order to identify performance issues and automatically analyze their root causes. According to Palo Alto, this approach aims to elevate observability functions into automated remediation mechanisms.
This acquisition comes a few months after Palo Alto Networks’ purchase of CyberArk for about $25 billion. CyberArk shareholders approved the deal, and the two transactions are expected to close in the second half of fiscal 2026, subject to the usual closing conditions.
