Palo Alto Networks (NASDAQ:PANW) shares are trading higher after the company beat fourth-quarter estimates and issued strong guidance. Following the earnings release, several Wall Street analysts reiterated their positive outlook on the stock.

Palo Alto Networks will buy Israeli peer CyberArk Software for about $25 billion, in its biggest deal yet, as CEO Nikesh Arora seeks to build a comprehensive cybersecurity provider to tap into rising AI-driven demand.

The proposed $25 billion acquisition reflects the growing importance of identity management — and would fill a crucial gap in the Palo Alto Networks portfolio.