Palo Alto Networks Acquires Embrace to Enhance Observability and App Performance

Palo Alto Networks (PANW) announced plans to acquire Embrace, a provider of user-focused observability, to add high-fidelity Real User Monitoring to its observability platform. The deal extends Palo Alto's platform into Digital Experience Monitoring, giving customers unified visibility from end-user interactions through to backend infrastructure.

The acquisition builds on Palo Alto's January 2026 purchase of Chronosphere and comes as its observability business surpassed $300 million in annual recurring revenue in the third quarter of fiscal 2026. Alongside the deal, the company is introducing Synthetics, a capability built with its Autonomous Digital Experience Management team for proactively validating application performance.

Financial terms were not disclosed, and the transaction is expected to close in Palo Alto's first quarter of fiscal 2027, subject to customary conditions. The move deepens Palo Alto's push beyond core cybersecurity into the fast-growing observability market, where it competes with Datadog and Dynatrace.

Related Stocks

• PANW