Palo Alto Networks has agreed to acquire Israeli cybersecurity firm CyberArk Software in a cash-and-stock deal valued at approximately $25 billion. Under the terms, CyberArk investors will receive $45 in cash plus 2.2005 shares of Palo Alto Networks stock for each CyberArk share, representing a 26% premium over CyberArk's recent 10-day trading average. The acquisition marks Palo Alto Networks' largest deal to date and is aimed at expanding its identity security and artificial intelligence capabilities amid rising AI-driven cybersecurity threats. The transaction is expected to close in fiscal 2026 and will immediately contribute to Palo Alto Networks' revenue growth and gross margin. CEO Nikesh Arora is leading the move to position the company as a comprehensive cybersecurity provider in response to increasing demand for AI-era defense solutions.