CyberArk revenue climbs ahead of $25 billion acquisition by Palo Alto Networks
The Israeli company reported steady performance amid preparation for integration into the cybersecurity giant.
CyberArk on Thursday reported solid third-quarter results that reflected steady demand for its identity-security products as the company moves toward completion of its planned $25 billion acquisition by Palo Alto Networks.
Revenue for the quarter rose 43 percent year-on-year to $342.8 million, driven primarily by continued adoption of subscription-based services. Subscription revenue climbed 60 percent to $280.1 million, and annual recurring revenue reached $1.34 billion, up 45 percent from the same period last year.
CyberArk reported a GAAP operating loss of $50.1 million, compared with an $11.1 million loss a year earlier, due largely to acquisition-related costs and integration expenses linked to previous deals. On a non-GAAP basis, operating income increased to $64.8 million, representing a 19 percent margin, up from 15 percent last year.
Net income rose to $64.9 million, or $1.20 per share, compared with $0.94 per share in the same period last year. The company ended the quarter with $1.96 billion in cash and marketable securities.
Operating cash flow was $50.7 million, reflecting approximately $8.5 million in transaction expenses related to the pending merger with Palo Alto Networks.
The merger, announced in July, is expected to close in the second half of Palo Alto’s fiscal 2026 year. The combination will bring together Palo Alto’s network, cloud, and endpoint security operations with CyberArk’s identity-security platform.
“CyberArk delivered outstanding results, highlighted by record third quarter net new ARR and continued strong execution,” said Matt Cohen, CEO of CyberArk. “We saw robust demand across our business, as customers turn to us to solve their most complex identity security challenges. The proliferation of privilege across human identities, the exponential rise of machine identities, and the emerging need to secure agentic AI create a tremendous opportunity, one that we are uniquely positioned to capture.
“Looking ahead, the combination of CyberArk and Palo Alto Networks will create a powerful growth engine, enabling us to reach more customers and meet the rapidly expanding market. Our customers are very excited about this partnership and the creation of a modern identity security platform for the AI era.”
