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Palo Alto Networks Cuts Annual Profit Forecast as Deal Costs Bite, Shares Fall
Palo Alto Networks aims to enhance endpoint security with AI-driven malware detection by acquiring Koi Security, estimated at $400 million, expanding its Israeli market presence.
- On February 17, 2026, Palo Alto Networks signed a definitive agreement to acquire Koi Security, Globes reported.
- Koi built an engine using LLMs and AI agents to detect malware and vulnerabilities, advancing Palo Alto Networks’ Israel strategy less than a week after its $25 billion CyberArk acquisition.
- No financial terms were disclosed, though Globes reported the price at about $400 million; Koi had raised only $48 million, benefiting founders Amit Assaraf, Idan Dardikman, Itay Kruk, Battery Ventures, and NFX.
- Ahead of quarterly results due after the close, shares of Palo Alto Networks fell around 7% in extended trading on February 17, 2026, after trimming its profit forecast.
- Following CyberArk and Chronosphere buys, Palo Alto aims to enhance Prisma AIRS and Cortex XDR, with Arora noting 'platformizations, a trend that is accelerating due to AI.
17 Articles
17 Articles
Palo Alto Networks cuts annual profit forecast as deal costs bite, shares fall
Palo Alto Networks trimmed its annual profit forecast on Tuesday, signaling rising costs from recent acquisitions to enhance AI capabilities, sending the cybersecurity company's shares down around 7% in extended trading.
Palo Alto Networks’ Koi acquisition is all about keeping AI agents in check
Palo Alto Networks announced Tuesday its plans to buy security startup Koi, a deal aimed at addressing the security risks emerging as organizations rapidly adopt agentic AI. Terms were not disclosed, but Israeli business outlet Globes reported that Palo Alto will pay approximately $400 million. The deal is another among a trend of larger cybersecurity industry companies buying AI-focused security startups. In a statement announcing the agreemen…
Palo Alto acquires Israeli AI security startup Koi
Cyber giant Palo Alto Networks has acquired Israeli startup Koi for approximately $400 million. Koi will enable Palo Alto to integrate an additional defense layer for enterprise AI agents – an arena currently considered completely exposed. Lee Klarich, chief product and technology officer at Palo Alto Networks, said, "AI agents and autonomous tools are the ultimate 'insider threats.' They have full access to your systems and data, but operate co…
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