Palo Alto Networks to Acquire CyberArk in $25 Billion Deal, Paving the Way for AI-Era Security Platform

In a move poised to reshape the cybersecurity landscape, Palo Alto Networks announced on Wednesday it has entered into a definitive agreement to acquire CyberArk (NASDAQ: CYBR), the global leader in Identity Security. The landmark deal, valued at approximately $25 billion, aims to establish a unified security platform tailored for the challenges of the AI era—where human, machine, and agentic identities require increasingly sophisticated access protection.

Under the terms of the agreement, CyberArk shareholders will receive $45.00 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk share, reflecting a 26% premium based on a 10-day volume-weighted average price (VWAP) as of July 25. The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the second half of Palo Alto Networks’ fiscal 2026.

“This is our inflection point for Identity Security,” said Nikesh Arora, Chairman and CEO of Palo Alto Networks. “Our platform strategy has always been about entering categories when the market demands a new approach—and that moment has arrived for identity. The explosion of machine and AI-based identities means we must move past traditional IAM thinking. CyberArk brings foundational technology and unmatched expertise that will anchor identity as a core pillar of security in the AI era.”

Founded in Israel over two decades ago, CyberArk has earned a reputation for protecting organizations’ most sensitive assets by offering privileged access management and, more recently, expanding into full-scale Identity Security. That vision now gains global scale with Palo Alto Networks’ extensive reach, platform integration capabilities, and AI-driven threat intelligence.

“This is a profound moment in our journey,” said Udi Mokady, Founder and Executive Chairman of CyberArk. “Since day one, our mission has been to protect what matters most. Partnering with Palo Alto Networks is a natural next chapter—combining our strengths to deliver the broadest and deepest identity security platform in the market. Together, we will be uniquely positioned to address the most urgent security challenges, from human credentials to autonomous AI agents.”

This is the second-largest exit deal for Israel, following Google's acquisition of Wiz earlier this year for $32 billion. 

The combined company aims to deliver a seamless platform that secures identities across the modern enterprise—from users to workloads to AI-driven agents—through just-in-time access and least-privilege principles. CyberArk’s technology will be tightly integrated into Palo Alto Networks’ existing Strata™ and Cortex® platforms, creating real-time, identity-aware threat prevention and response.

Beyond securing human identities, the merger’s strategic value lies in its alignment with the rising adoption of autonomous AI. These agents, often with broad system access, introduce a new class of privileged identity. The joint platform will offer granular controls to manage these agents’ access in real-time, helping organizations prevent misuse, drift, or compromise.

“This isn’t just about adding features,” Arora emphasized. “It’s about creating the cyber guardian our customers need—so they can focus on innovation while we protect their digital future.”

As the acquisition news dominated headlines, CyberArk also posted strong financial results for the second quarter of 2025, showcasing the momentum behind its core business. Total revenue for the quarter reached $328 million, a 46% increase year-over-year, driven by robust growth in subscription revenue, which rose 66% to $263.8 million. The results included financial contributions from the acquisitions of Venafi and Zilla Security, which closed in October 2024 and February 2025, respectively.

“CyberArk delivered second quarter results that highlight the demand for identity security and the success of our land-and-expand platform selling motion,” said Matt Cohen, CEO of CyberArk. “We operate in an environment where identity is at the center of major breaches. That’s why our unified platform—covering human, machine, and AI identities—resonates so strongly with customers. We’re incredibly pleased that Palo Alto Networks shares this vision and will help us scale it globally.”

Despite a GAAP net loss of $90.8 million—largely due to a one-time $44.1 million tax payment related to the Venafi acquisition—CyberArk posted a non-GAAP net income of $45.6 million, or $0.88 per diluted share. Non-GAAP operating income rose to $49.4 million, representing a 15% margin, up from 11% in the same period last year.

The transaction is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margin, and to its free cash flow per share in fiscal year 2028 following the realization of synergies. The companies will host a joint investor call on July 30, replacing CyberArk’s previously scheduled Q2 earnings call on August 7.

With this acquisition, Palo Alto Networks and CyberArk are setting the stage for a new era in cybersecurity—where identity is no longer just a security layer but the very foundation of defense in a world increasingly shaped by AI. As regulatory approvals move forward, the combined entity is expected not only to reshape the identity security landscape but also to redefine how enterprises protect their people, systems, and intelligent agents in real time.