Palo Alto Networks joins Israel’s key indices with phased entry rules and 5% cap
The Tel Aviv Stock Exchange applies gradual inclusion rules and foreign exposure limits to flagship indices, TA-35 and TA-125.
Palo Alto Networks’ stock is set to join the leading Tel Aviv Stock Exchange indices on a fast track following the quarterly index adjustment scheduled for August 6, 2026. The stock’s maximum weight in both the TA-35 and TA-125 indices will be capped at 5%, according to a statement from the exchange.
Under index rules, the combined weight of foreign stocks with exposure to the same country (“aggregate weight limit”) in the flagship indices (TA-35 and TA-125) cannot exceed 8%. As a result, the Index Committee determined that Palo Alto’s maximum weight in the TA-35 index will be 5%. The committee also reduced the weight cap for Ormat Technologies, a U.S.-listed company already included in the indices, to 3% from 4%, although its current effective weight is approximately 2.7%.
1 View gallery
Palo Alto Networks' California headquarters, Tel Aviv Stock Exchange
(Rina Castelnuovo/Bloomberg)
The weight cap for Palo Alto in the TA-125 index will also be set at 5%, the maximum allowed for a single stock in that index. Without the aggregate foreign-stock limit, Palo Alto’s theoretical cap would have been 7%, the standard maximum weighting for individual constituents.
In line with index methodology, newly added stocks are introduced gradually. Accordingly, Palo Alto’s effective weight at the time of inclusion in August will be 25% of its target weight. At the next index review in November, this will increase to 50%, before reaching full weight allocation at the third adjustment following its entry.
Palo Alto Networks is traded on Wall Street with a market capitalization of $287 billion, and in Tel Aviv at a valuation of approximately 861 billion shekels. The stock began trading on the local exchange in February 2026. The company was founded by Israeli entrepreneur Nir Zuk.
