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 Furthermore, 75% of organizations continue to rely on outdated privilege models, leaving them vulnerable to sophisticated cyberattacks.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 accelerate breach response times by up to 80%, thereby enhancing overall organizational security.
Seamless Integration with Continued Support
CyberArk’s existing solutions will remain available as standalone offerings, ensuring that current users experience no disruptions. Simultaneously, efforts are underway to integrate these solutions into Palo Alto Networks’ broader ecosystem. This integration promises an enhanced roadmap focused on improving efficiency and resilience for customers.
The acquisition effectively eliminates identity silos, enabling unified management across hybrid cloud environments. This unified approach, combined with Palo Alto Networks’ robust network security and operations tools, offers customers comprehensive protection tailored for the AI era, where autonomous agents necessitate stringent 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, described the acquisition as a win-win, stating that blending the two companies’ portfolios will effectively halt identity-driven attacks and fuel innovation.
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.
In recognition of CyberArk’s Israeli roots and to support its significant R&D hub outside Silicon Valley, Palo Alto Networks plans to establish a secondary listing on the Tel Aviv Stock Exchange under the ticker symbol CYBR.
Palo Alto Networks has scheduled its Q2 FY2026 earnings call for February 17, 2026, at 1:30 p.m. PT, where further details about the acquisition and future plans are expected to be discussed.
Conclusion
This acquisition solidifies Palo Alto Networks’ leadership across multiple domains, including network, cloud, operations, AI, and now identity security. Serving over 70,000 customers through AI-powered platforms and Unit 42 intelligence, the company is well-positioned to address the evolving cybersecurity challenges of the AI era.
