Palo Alto Networks Finalizes $25 Billion Acquisition of CyberArk, Strengthening Identity Security in the AI Era
On February 11, 2026, Palo Alto Networks, a global leader in cybersecurity, announced the completion of its acquisition of CyberArk, a prominent identity security firm, in a landmark $25 billion deal. This strategic move underscores the growing importance of identity security as a foundational element in Palo Alto Networks’ platform strategy, especially in the face of escalating AI-driven cyber threats.
Addressing the Surge in Identity-Based Cyber Threats
The digital landscape is witnessing a significant shift, with machine identities now outnumbering human identities by a staggering ratio of over 80 to 1. This proliferation has led to a surge in identity-related breaches, with nearly 90% of enterprises reporting such incidents. Alarmingly, credential abuse has emerged as the primary attack vector in these breaches. Furthermore, 75% of organizations continue to rely on outdated privilege models, leaving them vulnerable to sophisticated cyberattacks.
By integrating CyberArk’s advanced identity security solutions, Palo Alto Networks aims to extend privileged access controls across all identities—human, machine, and the emerging class of autonomous AI agents. This comprehensive approach is designed to minimize standing privileges and enhance breach response times by up to 80%, thereby fortifying organizations against evolving cyber threats.
Seamless Integration with Continued Support
CyberArk’s existing solutions will remain available as standalone offerings, ensuring uninterrupted service for current users. Simultaneously, efforts are underway to integrate these solutions into Palo Alto Networks’ broader ecosystem. This integration promises enhanced efficiency and resilience, providing customers with a unified security framework that addresses the complexities of modern cyber threats.
A key advantage of this acquisition is the elimination of identity silos, enabling unified management across hybrid cloud environments. This holistic approach ensures that network security and operational tools work in concert, offering comprehensive protection tailored for the AI era, where autonomous agents necessitate robust privilege controls.
Leadership Perspectives on the Acquisition
Nikesh Arora, Chairman and CEO of Palo Alto Networks, emphasized the strategic timing of this acquisition:
The emerging wave of AI agents will require us to secure every identity, human, machine, and agent.
He highlighted the importance of ending silos to achieve trusted, end-to-end security.
Matt Cohen, CEO of CyberArk, echoed this sentiment, describing the acquisition as a win-win scenario. He noted that blending the portfolios of both companies would effectively halt identity-driven attacks and fuel innovation in the cybersecurity domain.
Financial Details and Future Outlook
Under the terms of the acquisition, CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share. This transaction marks Palo Alto Networks’ largest acquisition to date, reflecting the company’s commitment to strengthening its position in the cybersecurity market.
In recognition of CyberArk’s Israeli roots and its significant R&D presence outside Silicon Valley, Palo Alto Networks plans to establish a secondary listing on the Tel Aviv Stock Exchange under the ticker symbol CYBR. This move underscores the company’s dedication to honoring and integrating the heritage and expertise of its acquired entities.
Palo Alto Networks has scheduled its Q2 FY2026 earnings call for February 17, 2026, at 1:30 p.m. PT. During this call, the company is expected to provide further insights into the acquisition’s impact and outline its strategic vision for the future.
Conclusion
The completion of the CyberArk acquisition marks a significant milestone for Palo Alto Networks, solidifying its leadership across various domains, including network, cloud, operations, AI, and now identity security. Serving over 70,000 customers worldwide, the company continues to leverage AI-powered platforms and Unit 42 intelligence to deliver comprehensive cybersecurity solutions.
As the digital landscape evolves, particularly with the rise of AI agents, the integration of CyberArk’s identity security solutions positions Palo Alto Networks to offer robust, end-to-end security frameworks. This strategic move not only addresses current cybersecurity challenges but also anticipates future threats, ensuring that organizations are well-equipped to navigate the complexities of the AI era.
