CYBR Leans on AI Identity Security: Will It Unlock Next Growth Phase?

CyberArk Software Ltd. CYBR is betting big on artificial intelligence (AI) as identity security becomes more complex. In the second quarter of 2025, CYBR posted strong results, with annual recurring revenues rising 47% to $1.27 billion. Subscriptions now account for 80% of revenues, a clear sign that its software-as-a-service (SaaS) transition is paying off.

CyberArk is rapidly enhancing the capabilities of its identity security platform with AI integration. CyberArk Secure AI Agents Solution and CORA AI are the two most important recent additions to its portfolio. CYBR is also working with Accenture to enhance its identity security platform with Accenture’s AI Refinery.

The Secure AI Agent solution is designed to protect the AI Agents deployed by CyberArk’s enterprise customers from prompt injection, credential leakage and permission abuse. CORA AI serves as the intelligence engine embedded inside the Secure AI Agent solution.

The integration of CORA AI and Secure AI Agents within CyberArk’s identity security platform enables it to secure a full spectrum of identities, including human, AI and machine. For humans, the platform secures workforce access, IT systems, developer environments, and both managed and unmanaged endpoints. For AI, the platform secures AI agents, and for machines, it protects certificates and workload access.

CyberArk’s approach of integrating AI into its security stack positions it to solve emerging challenges faced by businesses, including managing permissions, entitlements and secrets. The opportunity is significant. The company estimates an $80 billion total addressable market, and nearly every large enterprise is grappling with identity-related cyber risks.

CyberArk’s sustained focus on capability enhancement and product launches, such as Secure AI Agent and CORA AI, will continue to drive its top-line growth. The Zacks Consensus Estimate of $1.32 billion for 2025 revenues indicates a year-over-year increase of 32.3%. The strong prospects of its business model have led to Palo Alto Networks buying CyberArk for about $25 billion.

How Competitors Fare Against CyberArk

CyberArk faces strong competition from other identity security-focused players, including Okta, Inc. OKTA and SailPoint, Inc. SAIL.

Okta is best known for its identity and access management solutions. Okta has been adding AI-driven tools that automate risk detection and reduce manual processes in managing user access.

SailPoint, while more focused on identity governance, is also an important rival. SailPoint uses AI and machine learning to help organizations manage user entitlements, monitor access risks and maintain compliance. Its strength lies in large enterprise adoption, where governance and audit requirements are critical.

CyberArk’s Price Performance, Valuation and Estimates

Shares of CYBR have gained 31.5% year to date compared with the Zacks Security industry’s growth of 7.3%.

CyberArk YTD Price Performance Chart

From a valuation standpoint, CYBR trades at a forward price-to-sales ratio of 14.56, higher than the industry’s average of 11.94.

CyberArk Forward 12 Month (P/S) Valuation Chart

The Zacks Consensus Estimate for CYBR’s 2025 and 2026 earnings implies year-over-year growth of 27.7% and 24.7%, respectively. Estimates for 2025 have been revised upward over the past seven days, while for 2026 have been revised northward in the past 30 days.
 

CYBR currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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