<\/button><\/span><\/span><\/span> surpassed fiscal fourth-quarter<\/a> estimates as mounting artificial intelligence<\/a> risks boost demand for its cybersecurity tools. <\/p>\nShares dipped about 2% in extended trading, following a 5% drop during the regular session. <\/p>\n
Here’s how the company did versus LSEG estimates:<\/p>\n
\n- Earnings per share<\/strong>: $1.02 adjusted vs. 98 cents expected<\/li>\n
- Revenue<\/strong>: $3.41 billion vs. $3.35 billion expected.<\/li>\n<\/ul>\n
Revenue jumped 34% during the quarter from $2.54 billion a year ago, the company said. Palo Alto reported a net loss of $282 million, or 35 cents per share, down from net income of $254 million, or 36 cents per share, a year ago.<\/p>\n
The acceleration of AI attacks is forcing customers to build better and faster cyber defenses, CEO Nikesh Arora told CNBC. Those concerns have already moved the needle, but the long-term growth runway is still in the early stages.<\/p>\n
“This is a long-term tailwind,” he said. “It will not happen in one quarter, and it will not happen in two. It just underpins the long-term duration from a growth rate perspective for our business.”<\/p>\n
Shares of Palo Alto Networks have nearly doubled this year as the rise of highly capable AI models like Anthropic<\/a>‘s Mythos<\/a> spurs demand for newer security tools to detect and respond to agentic cyberattacks.<\/p>\nAgentic AI concerns have accelerated as breaches, like the OpenAI<\/a>