Three Cybersecurity Stocks to Watch for the Next Decade: Palo Alto Networks, Microsoft, and CrowdStrike

Palo Alto Networks, Microsoft, and CrowdStrike are cybersecurity stocks that could be great buys for the next decade. Palo Alto Networks acquired CyberArk, expanding its identity access management offerings and growing sales 46% in Q2 to $328 million. Microsoft is a leading cloud computing company with a strong cybersecurity business, generating an estimated $37 billion in sales this year. CrowdStrike is a cybersecurity pure play with a strong track record, consistently on tech investors' buy lists.

Palo Alto Networks, the global cybersecurity leader, has announced its acquisition of CyberArk, the identity security leader, marking a significant move to enhance its platform strategy. The acquisition will create an end-to-end security platform for the AI era, extending identity security to all users, including humans, machines, and AI agents [1].

The acquisition, valued at approximately $25 billion, includes a combination of cash and Palo Alto Networks' common stock. This deal represents a 26 percent premium to the unaffected 10-day average of the daily VWAPs of CyberArk as of July 25, 2025. The transaction is expected to be immediately accretive to Palo Alto Networks’ revenue growth and gross margin [1].

Palo Alto Networks aims to integrate CyberArk's Identity Security Platform with its existing AI-powered security platforms, Strata™ and Cortex®. This integration will deliver near real-time security outcomes for customers by combining best-of-breed technology and integrated platforms. The combined companies will provide a single, unified solution designed to eliminate dangerous security gaps and simplify operations [1].

The acquisition of CyberArk will also disrupt the legacy IAM market by extending robust, security-first PAM principles to every identity across the enterprise. This move will secure agentic AI and enforce just-in-time access and least privilege principles, ensuring AI agents are granted only the permissions they need, for the exact moment they need them [1].

Palo Alto Networks' Chairman and CEO, Nikesh Arora, stated, "Our market entry strategy has always been to enter categories at their inflection point, and we believe that moment for Identity Security is now." Udi Mokady, Founder and Executive Chairman of CyberArk, added, "Joining forces with Palo Alto Networks is a powerful next chapter, built on shared values and a deep commitment to solving the toughest identity challenges" [1].

The acquisition aligns with Palo Alto Networks' strategy to become a multi-platform cybersecurity leader. By integrating CyberArk's capabilities into its existing platforms, Palo Alto Networks aims to provide a comprehensive and integrated security portfolio for its customers. The combined companies will offer one of the industry's most comprehensive and integrated security portfolios, allowing customers to focus on their core business objectives while Palo Alto Networks secures their digital future [1].

The transaction is expected to close during the second half of Palo Alto Networks’ fiscal 2026, subject to customary closing conditions, including regulatory clearances and approval by CyberArk shareholders [1].

References:
[1] https://www.arcweb.com/blog/palo-alto-networks-announces-agreement-acquire-cyberark-identity-security-leader