Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) is advancing its identity security strategy following its CyberArk acquisition, with analysts at Jefferies highlighting the company’s new unified platform initiative and the growing role of AI-driven cybersecurity threats.
After attending CyberArk’s IMPACT26 conference virtually, Jefferies said Palo Alto Networks has rebranded CyberArk into “Idira,” a platform designed to unify identity security and privileged access management across both human and non-human identities.
“Idira introduces AI-powered identity risk discovery, zero standing privilege (ZSP), and automated governance for identities, with a roadmap that leads to extending privilege control to workforce identities,” the analysts highlighted
Existing CyberArk SaaS customers will gain access to the new modules, with pricing dependent on current licensing arrangements.
Jefferies said the expansion reflects a broader industry shift toward modern privileged access management as organizations face increasing risks tied to over-permissioned users and AI-driven cyber threats.
According to data presented at the conference, 96% of employees are considered over-permissioned, while only 39% of privileged access is governed through just-in-time or zero-standing privilege frameworks.
The analysts said Palo Alto Networks believes legacy privileged access models are becoming inadequate as identities increasingly include employees, machines and AI agents. Jefferies added that it expects the market to gradually move toward treating all identities as privileged by default, though adoption may take time as lighter-weight architectures are developed.
Jefferies also pointed to increasing urgency around AI-related cyber risks. Palo Alto Networks said enterprises may have only a three- to five-month window to prepare for a new wave of AI-driven exploits, according to comments referenced from the company’s cybersecurity research blog.
“While cyber budgets have lagged architectural transformation historically, we're clearly approaching an inflection point which should benefit budgets materially,” they wrote.
The analysts said accelerating AI adoption could become a material driver for cybersecurity spending, particularly in identity security and automated detection and response tools.
Jefferies noted that prior channel survey work indicated CyberArk was viewed by value-added resellers as the vendor best positioned in “agentic security,” and said the company was the only vendor in its survey to improve performance versus plan sequentially during the first quarter.
The Idira launch saw Palo Alto shares surged 5% to an all-time high on Thursday afternoon.