Palo Alto Networks becomes first company to hit NIS 1 trillion on Tel Aviv Stock Exchange
The Israeli-founded cybersecurity giant has more than doubled its value since beginning to trade in Tel Aviv seven months ago.
Cybersecurity giant Palo Alto Networks has crossed a new milestone on the Tel Aviv Stock Exchange, becoming the first company in the exchange’s history to reach a market capitalization of NIS 1 trillion ($326 billion).
Palo Alto shares rose 5.5% on Thursday, pushing the company’s valuation above the threshold. The milestone puts Palo Alto far ahead of the next-largest companies on the exchange. Teva has a market capitalization of approximately NIS 142 billion, followed by Bank Leumi at around NIS 110 billion. Palo Alto is therefore worth roughly seven times as much as Teva and almost as much as all of the rest of the TA-35.
Founded in 2005 by Israeli entrepreneur Nir Zuk, Palo Alto began in Silicon Valley before listing on Nasdaq. It joined the Tel Aviv Stock Exchange in February, following the completion of its acquisition of Israeli cybersecurity company CyberArk.
The $25 billion CyberArk deal, completed on February 11, was the largest acquisition in Palo Alto’s history. The company began trading in Tel Aviv less than two weeks later, on February 23, alongside its Nasdaq listing. Palo Alto said the decision reflected CyberArk’s Israeli roots and Israel’s position as a global cybersecurity hub. It also adopted the CYBR ticker used by CyberArk on Nasdaq.
When Palo Alto announced its Tel Aviv listing, the company was valued at approximately $115 billion, or NIS 355 billion. By the time trading began in Tel Aviv, its market capitalization had risen to NIS 379 billion.
Since then, Palo Alto has added approximately NIS 621 billion to its market value, an increase of 164%. Its valuation has therefore grown by more than 2.6 times in just over seven months.
The rise has coincided with strong demand for cybersecurity as companies grapple with the security implications of artificial intelligence. Palo Alto reported fourth-quarter revenue of $3.41 billion, up 34% year over year, and forecast fiscal 2027 revenue of $14.1 billion to $14.2 billion.
CEO Nikesh Arora has argued that the rapid development of AI is changing the threat landscape, as attackers gain access to increasingly capable tools and companies deploy autonomous AI agents across their operations. Palo Alto has increasingly positioned itself around automating cybersecurity rather than relying on customers to manage security manually.
That shift is reflected in the company’s recent product and acquisition strategy. Arora said Palo Alto sees cybersecurity moving toward a more “agentic” model, in which software can identify and remediate problems with less direct involvement from customers.
The broader market is also expanding rapidly. Gartner estimates that global spending on AI cybersecurity will reach $51.3 billion in 2026, almost double the $25.9 billion recorded for 2025. The figure is expected to rise to approximately $86 billion in 2027. Gartner said the growing use of AI agents is creating a new layer of identities and activity that organizations will need to monitor and secure.
The company’s shares have also drawn bullish views from Wall Street. BTIG raised its price target for Palo Alto from $404 to $425 and maintained its “Buy” rating following discussions with management.
