Palo Alto Networks (NASDAQ:PANW) shares are trading higher after the company beat fourth-quarter estimates and issued strong guidance. Following the earnings release, several Wall Street analysts reiterated their positive outlook on the stock.

The proposed $25 billion acquisition reflects the growing importance of identity management — and would fill a crucial gap in the Palo Alto Networks portfolio.

Palo Alto Networks, the dominant cybersecurity company, reported its year-end and fourth-quarter earnings, beating Wall Street's targets and signaling strong growth ahead.