Economy02:47 · Jul 29

Palo Alto Networks Surges 109% in Five Months, Joins Top Tel Aviv Stock Indices

Globes

Translated & summarized from Globes by baba

Key points

01Palo Alto Networks’ TASE stock rose 109% since February, becoming the largest by market cap at 813 billion shekels.
02The company will join TA-35 and TA-125 indices on August 6 with a phased weight increase due to foreign status.
03Trading volume averages 8.5 million shekels daily, with strong institutional, foreign, and retail investor interest.
04Palo Alto acquired Israeli CyberArk for $21.5 billion, boosting its identity security amid AI cybersecurity concerns.
05Analysts mostly recommend buying, forecasting 24% revenue growth and EPS rising to $3.77 for fiscal 2026.
06Inclusion in indices is expected to increase demand and liquidity, enhancing its position in the Israeli market.

In this story

People

Nikesh Arora, Nir Zuk, Matt Cohen, Udi Mokady, Yaniv Pagot

OrganizationsPalo Alto Networks, CyberArk, Chronosphere, Tel Aviv Stock Exchange, TA-35, TA-125, Elbit Systems, Teva Pharmaceutical Industries

PlacesTel Aviv, Israel, United States

The story · English

Palo Alto Networks, the cybersecurity giant, has seen its stock price soar by 109% since it began trading on the Tel Aviv Stock Exchange (TASE) less than six months ago. The company will be officially added to the leading TASE indices, TA-35 and TA-125, on August 6, marking a significant milestone in its local market presence. Currently, Palo Alto Networks holds the largest market capitalization on the exchange at 813 billion shekels, nearly 30% of the total value of all companies listed on TASE.

Since its February debut on the exchange, Palo Alto Networks has generated a cumulative trading volume exceeding 850 million shekels, with an average daily turnover of about 8.5 million shekels and over 600 trades per day. Institutional investors and portfolio managers account for approximately 18% of trading volume, foreign investors 20%, and Israeli retail investors 15%, a higher retail participation rate than the market average. The company was founded by Israeli Nir Zuk, who left about a year ago.

The stock was not included in the last index update due to the 60-day trading requirement but will be gradually incorporated into the indices starting August 6. Its weight in the TA-35 index will initially be limited to 5% due to its foreign status, with a phased increase to full weight by November and subsequent quarterly updates. Analysts remain broadly optimistic, with 44 out of 56 recommending buying or overweight positions, and an average price target about 7.6% above the current Nasdaq price.

Palo Alto Networks recently completed a major acquisition of Israeli cybersecurity firm CyberArk for approximately $21.5 billion, strengthening its identity security offerings, a critical area amid rising AI-driven cybersecurity threats. CEO Nikesh Arora highlighted the growing importance of managing AI agents as autonomous identities requiring protection. The combined revenue contribution from CyberArk and another acquisition, Chronosphere, was $338 million in the last quarter, part of a total $3 billion quarterly revenue.

The company’s fiscal year runs from August to July, with financial results for 2026 expected in August after joining the indices. Analysts forecast 24% annual revenue growth to $11.4 billion and earnings per share rising to $3.77 from $3.34 the previous year. The inclusion in major indices is expected to boost demand and liquidity further, solidifying Palo Alto Networks’ position in the Israeli capital market.

Read the original at Globes