Palo Alto Networks Completes CyberArk Takeover To Expand Identity Security In AI Push

Palo Alto Networks has finalised its acquisition of CyberArk, integrating the Israeli firm’s identity security platform into its wider product suite as part of a broader strategy to secure human, machine and agentic identities across hybrid environments.

The deal, first announced in July 2025, positions identity as a central pillar of Palo Alto’s platformisation agenda, as organisations face new risks tied to automation and generative AI proliferation.

Privilege Controls Target AI Identity Risk

Palo Alto Networks said the addition of CyberArk would help address the shift toward AI and machine-based automation, which has dramatically increased the number of digital identities requiring protection.

Machine identities now outnumber human users by more than 80 to 1. Around 75 per cent of organisations still rely on outdated or overly permissive models to manage human credentials, the company said.

“Nearly 90 per cent of organisations have already suffered an identity-centric breach,” Palo Alto Networks stated, citing abuse of credentials and excessive access as primary attack vectors.

By extending privilege controls beyond administrative roles to encompass all identity types, the company said it aims to reduce lateral movement and respond faster to credential misuse.

“Organisations can accelerate breach response by up to 80 per cent by preventing attackers from abusing credentials and excessive access,” it said.

CyberArk’s standalone offerings will remain available, while deeper integration with Palo Alto’s existing security stack is already underway.

Arora: No More ‘Identity Silos’

Chairman and Chief Executive, Nikesh Arora, said the integration reflects a strategic move to address emerging threats from AI agents.

“The emerging wave of AI agents will require us to secure every identity – human, machine and agent,” Arora said.

“This is why we moved decisively… For our customers, this means the end of ‘identity silos.’ They can now manage privileged access across their entire hybrid cloud environment from the same company they trust for Network Security and Security Operations.”

Matt Cohen, Chief Executive of CyberArk, called the move a milestone for both firms.

“This is a win-win,” he said. “Our customers gain access to the world’s most comprehensive security portfolio, and our employees join a global innovation engine.”

Tel Aviv Listing To Honour CyberArk Origins

Palo Alto Networks said it plans to pursue a secondary listing on the Tel Aviv Stock Exchange under the ticker “CYBR,” honouring CyberArk’s Israeli roots.

The company is already listed on NASDAQ under “PANW.” The TASE listing would make it the largest company by market cap on the Israeli exchange.

Palo Alto described its Israeli R&D centre as its largest outside Silicon Valley and said the dual listing reflects a commitment to expanding it as a key innovation hub for AI security.

Transaction Terms

CyberArk shareholders will receive US$45 in cash and 2.2005 shares of Palo Alto Networks common stock per CyberArk ordinary share.

No disruption is expected for existing customers, with a combined roadmap already under development to integrate identity services into Palo Alto’s platforms.

Q2 Results On February 17

The company will host its Q2 FY2026 earnings call via webcast on 17 February at 1.30 pm PT.

The call will be streamed on the investor section of Palo Alto Networks’ website at investors.paloaltonetworks.com.

Last Updated on February 12, 2026 by Nick Ross