Palo Alto Networks to acquire Embrace

Palo Alto Networks announced its intent to acquire Embrace, a provider of user-focused observability technology, to add Real User Monitoring (RUM) capabilities to its Observability platform. The company also introduced Synthetics, a new capability for proactive application performance validation. These additions extend Palo Alto Networks Observability to Digital Experience Monitoring, providing customers a unified view from end-user interactions to backend infrastructure. The acquisition follows the purchase of Chronosphere in January 2026 and is expected to close in Palo Alto Networks' first quarter of fiscal 2027, subject to customary conditions. Palo Alto Networks' Observability platform surpassed $300 million in annual recurring revenue in Q3 FY26.