Palo Alto’s Tel Aviv debut comes as shares slide 17% this year
Cybersecurity leader hits lowest market cap since May 2024 as investors scrutinize growth and integration risks.
Palo Alto Networks began trading today on the Tel Aviv Stock Exchange for the first time, marking a symbolic moment for a company founded by Israeli entrepreneur Nir Zuk and built into the world’s largest cybersecurity group by market value.
The listing comes at a delicate time. Palo Alto ended Friday trading on Wall Street with a market capitalization of approximately $121 billion, its lowest level since May 2024. The shares have fallen more than 17 percent so far this year.
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Palo Alto offices and the Tel Aviv Stock Exchange.
(Photos: Rina Castelnuovo/Bloomberg)
Palo Alto Networks said: "Today we mark a significant milestone for Palo Alto Networks with the commencement of trading on the Tel Aviv Stock Exchange under the symbol 'CYBR.'
"This listing honors CyberArk's Israeli heritage and reflects our confidence in the Israeli economy, its capital markets, and Israel's role as a global cyber powerhouse.
"Israel plays a central role in our success, thanks to its exceptional human capital, culture of innovation, and leadership in the cyber field. We are committed to continuing to invest in and expand our presence here, while strengthening our long-term partnership with Israel's technology ecosystem."
The Tel Aviv debut follows the company’s latest quarterly earnings report, in which it lowered its full-year revenue and earnings per share forecasts. The revision sent the stock down nearly 7 percent in a single session last week.
For its second fiscal quarter of 2026, Palo Alto reported revenue of $2.59 billion, up 15 percent compared with the same period last year. Net income reached $1.03 per share, above analyst expectations of $0.94.
Remaining performance obligations (RPO), a measure of contracted future revenue, rose to $16 billion, exceeding expectations of $15.8 billion.
Despite those results, the company reduced its full-year guidance. It now forecasts annual earnings of $3.65 to $3.70 per share, below market expectations of $3.87. It also projected annual revenue of $11.3 billion, short of analysts’ estimates, which had incorporated recent acquisition activity.
The more cautious outlook reflects the financial and structural impact of Palo Alto’s largest acquisitions to date.
Historically, Palo Alto pursued an acquisition strategy focused on smaller cybersecurity companies, typically paying several hundred million dollars for startups with established products and relatively small teams. This allowed the company to expand its capabilities without significantly increasing operating costs.
That approach changed with the $25 billion acquisition of Israeli cybersecurity company CyberArk, completed two weeks ago. The deal followed last year’s $3 billion acquisition of U.S.-based Chronosphere.
The CyberArk transaction significantly alters Palo Alto’s scale. The company, which previously employed about 16,000 people, is adding roughly 4,000 employees, the majority from CyberArk.
Part of the reduced revenue outlook stems from differences in how Palo Alto and CyberArk calculate annual recurring revenue. The discrepancy lowers the expected revenue contribution from CyberArk by 2 to 3 percent for the coming year.
The acquisition also affects earnings per share because it was largely financed through stock. Palo Alto issued 112 million new shares to CyberArk shareholders, creating dilution that weighs on EPS.
