Palo Alto Networks beats quarterly expectations amid demand for AI protection
U.S. cybersecurity company Palo Alto Networks exceeded analysts' expectations for the fourth fiscal quarter and announced its intention to acquire Console, a startup in the field of agentic artificial intelligence. After the release of its earnings report, the company's shares rose by about 5% in after-hours trading, following a 5% decline during the regular session.
Financial results
As CNBC Top News reports, Palo Alto Networks' adjusted earnings per share amounted to $1.02, compared with analysts' forecast of 98 cents. Revenue reached $3.41 billion, while the LSEG consensus forecast stood at $3.35 billion.
The company's quarterly revenue increased by 34% from $2.54 billion a year earlier. At the same time, Palo Alto Networks recorded a net loss of $282 million, or 35 cents per share. In the corresponding period of the previous year, the company reported net income of $254 million, or 36 cents per share.
Demand for protection and acquisitions
Palo Alto Networks CEO Nikesh Arora told CNBC that the acceleration of artificial intelligence-enabled attacks is forcing customers to strengthen and speed up cybersecurity protection. According to him, this factor is already affecting demand, but the long-term growth potential is only beginning to materialize.
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Arora also said that after the launch of Anthropic Mythos, the company held more than 2,000 customer briefings. In the previous quarter, Palo Alto Networks disclosed information about approximately 1,200 such briefings.
The company plans to buy Console to expand its offerings in AI security. Over the past year, Palo Alto Networks also struck a $25 billion deal for digital identity management company CyberArk and acquired Chronosphere for $3.4 billion.
Company forecast
For the first quarter, Palo Alto Networks forecasts revenue in the range of $3.30 billion to $3.31 billion, above analysts' expectations of $3.22 billion. The company's annual forecast calls for revenue of $14.10 billion to $14.20 billion and adjusted earnings per share of $4.16 to $4.19.
