Bloomberg Talks Palo Alto Networks CEO Talks Earnings, Acquiring Chronosphere
Nov 20, 2025
Nikesh Arora, CEO of Palo Alto Networks, shares insights on the company's recent $3.35 billion acquisition of Chronosphere to enhance AI-enabled cybersecurity. He highlights how Chronosphere's observability tools will ensure application uptime and integrate seamlessly into their offerings. Arora discusses the balance between M&A and organic growth, the importance of a long-term perspective on revenue, and addresses the enthusiasm around AI, asserting its potential for lasting impact across industries.
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Observability Enables Real-Time Reliability
- Chronosphere gives Palo Alto real-time observability to ensure application uptime as AI drives higher compute and faster apps.
- Nikesh Arora says combining observability with agentic capabilities allows automated fixes when systems fail.
Cost And Scale Are Observability's Bottlenecks
- Chronosphere solved observability's cost and scale problems by being 2.5x cheaper and scaling to gigawatt-level needs.
- This makes it suitable for AI workloads that require massive, cost‑efficient data pipelining.
Buy Strategic Capabilities When Needed
- Use M&A strategically to buy capabilities you cannot easily build and accelerate ARR growth.
- Nikesh Arora cites spending under $30B to add $5B ARR in five years as a repeatable trade-off.