New York, February 12, 2026, 10:31 EST — Regular session
- PANW shares dipped slightly following the announcement of a Tel Aviv secondary listing, coming after the completion of its CyberArk acquisition
- An SEC filing revealed updates on CyberArk-linked convertible notes and their associated hedges following the merger
- Investors are eyeing Palo Alto’s quarterly results on Feb. 17 for an early glimpse into integration progress and demand trends
Palo Alto Networks shares fell slightly on Thursday after the company announced plans to pursue a secondary listing in Tel Aviv once its $25 billion CyberArk acquisition wraps up. The stock slipped around 0.2%, trading at $165.05 in late morning action.
This move is significant as Palo Alto leverages a major acquisition to expand its presence in Israel, home to CyberArk, while opening the door for local investors. Once the listing goes through, the company will be the largest stock on the Tel Aviv Stock Exchange by market cap, Reuters reported. Reuters
This comes just before Palo Alto’s upcoming earnings report, where investors will seek details on the pace of CyberArk product integration into the wider platform and whether identity security can boost growth without hurting margins. The company is set to announce fiscal second-quarter results after U.S. markets close on Feb. 17.
Palo Alto told Reuters that listing in Tel Aviv would serve as “a powerful tribute” to CyberArk’s Israeli origins. It plans to trade under the ticker “CYBR,” but no date was provided. Reuters also reported that competitor Check Point Software intends to keep its shares solely on Nasdaq. Reuters
On Wednesday, Palo Alto announced in an SEC filing that it has finalized the acquisition of CyberArk. The company plans to continue offering CyberArk’s identity security products as a standalone platform during the integration process. CEO Nikesh Arora emphasized the aim to eliminate “identity silos” by enabling customers to manage privileged access “across their entire hybrid cloud environment” through a single vendor. SEC
CyberArk CEO Matt Cohen described the merger as “the definitive cyber guardian for the modern enterprise,” highlighting that customers will benefit from a wider security portfolio. The announcement also restated the deal’s terms: CyberArk shareholders will get $45 in cash plus 2.2005 Palo Alto shares for every CyberArk share they hold. SEC
An 8-K filing detailed key aspects of the merger mechanics. Palo Alto and CyberArk entered into a supplemental indenture related to CyberArk’s 0.00% convertible senior notes maturing in 2030, changing the conversion option from CyberArk shares to a mix of Palo Alto shares and cash. Palo Alto also committed to guaranteeing the obligations. SEC
The filing also outlined changes to the “capped call” transactions linked to those notes. These capped calls, typically used to hedge against dilution from convertibles, will now deliver Palo Alto shares following the merger. The associated rights and obligations will also transfer to Palo Alto. SEC
Traders are zeroing in on whether the Tel Aviv line will spark real additional demand or remain mostly symbolic. They’re also watching for integration updates to impact billings and renewal trends, as identity takes on a larger role in the sales approach. On Thursday, Palo Alto’s shares fluctuated between $163.09 and $167.79.
Still, integration isn’t guaranteed to be smooth. Combining product roadmaps and sales strategies gets complicated fast. Investors will keep an eye on churn risk if customers resist bundling, and they’ll also watch for any disruptions in reported results caused by deal-related financing and hedges.
Coming next is Palo Alto’s earnings report and call on Feb. 17. Investors will be watching closely for Q1 results that factor in the CyberArk acquisition and any updates on when “CYBR” will begin trading in Tel Aviv.
