Nov 19 (Reuters) - Palo Alto Networks ( PANW ) said on

Wednesday it will buy cloud management and monitoring company

Chronosphere for $3.35 billion, as the cybersecurity firm looks

to strengthen its AI offerings.

The Santa Clara, California-based company plans to

integrate Chronosphere with Cortex AgentiX platform, allowing

use of its AI agents on the cloud management firm's data to

detect performance issues and autonomously investigate their

root cause.

Palo Alto will pay the deal amount in cash and new equity to

substitute old awards. The deal is expected to close in the

second half of fiscal 2026.

Separately, Palo Alto raised its annual revenue and profit

forecasts on expectations of a surge in demand for its

cybersecurity solutions to tackle rising online threats.

For fiscal 2026, Palo Alto now sees revenue in the range of

$10.50 billion to $10.54 billion, compared with its earlier

outlook of $10.48 billion to $10.53 billion.

It expects annual adjusted profit per share of $3.80 to

$3.90, higher than the $3.75 to $3.85 it had forecast earlier.

Cybersecurity spending has remained resilient, underpinned

by threats from nation-state actors and increasingly

sophisticated ransomware attacks, benefiting companies such as

Palo Alto.