Palo Alto Networks has completed a transformative acquisition of CyberArk, a prominent identity security company, for $25 billion. Announced on February 11, 2026, this strategic move underscores the increasing importance of identity security as part of the company’s comprehensive platform, particularly in the face of growing AI-driven cyber threats.
Addressing Identity Security Needs
With the rise of digital identities, where machine identities vastly outnumber human identities by a ratio of over 80 to 1, this acquisition aims to tackle the outdated privilege models used by 75% of organizations. By integrating CyberArk’s advanced platform, Palo Alto Networks plans to enhance privileged access controls across all types of identities—human, machine, and AI agents—potentially reducing standing privileges and expediting breach responses by up to 80%.
Nearly 90% of businesses have experienced breaches related to identity security, with credential misuse being a primary attack vector. This acquisition allows Palo Alto Networks to offer a cohesive approach to identity security, addressing these vulnerabilities effectively.
Integration and Customer Benefits
As CyberArk’s solutions begin integration into Palo Alto Networks’ ecosystem, the company assures that existing services will remain uninterrupted. This move promises to enhance the efficiency and resilience of cybersecurity offerings, eliminating identity silos and providing unified management across hybrid cloud environments. This is crucial in the AI era, where autonomous agents necessitate robust privilege management.
Nikesh Arora, Chairman and CEO of Palo Alto Networks, highlighted the importance of timing, stating that the growth of AI agents requires securing all forms of identity. Matt Cohen, CEO of CyberArk, praised the acquisition as a perfect synergy that combines strengths to prevent identity-driven cyber incidents and foster innovation.
Strategic Business Moves
Under the terms of the acquisition, CyberArk shareholders will receive $45 in cash and 2.2005 Palo Alto shares for each ordinary share of CyberArk. This acquisition stands as Palo Alto’s largest to date, with plans to pursue a secondary listing on the Tel Aviv Stock Exchange under the “CYBR” ticker, paying homage to CyberArk’s Israeli origins and supporting its significant R&D hub outside Silicon Valley. Palo Alto’s earnings call for Q2 FY2026 is scheduled for February 17, 2026, at 1:30 p.m. PT.
This acquisition solidifies Palo Alto Networks’ position as a leader in network, cloud, operations, AI, and identity security, serving a clientele of over 70,000 through AI-enhanced platforms and insights from Unit 42 intelligence.
