Key insights
- Palo Alto Networks significantly raised its annual forecasts for revenue and profit, driven by strong demand for AI-driven cybersecurity solutions and increased enterprise spending. The company's shares surged in extended trading. This positive outlook for a major cybersecurity player, particularly highlighting AI's role, suggests robust growth in the sector and could signal increased investor confidence in technology spending, potentially benefiting related stocks.
June 2 (Reuters) - Palo Alto Networks raised its annual revenue and profit forecast on Tuesday, as enterprises increased spending on cloud, identity and AI-driven cybersecurity products amid a rising threat landscape, sending shares up 7.4% in extended trading.
Here are some details on the results:
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Santa Clara, California-based Palo Alto expects revenue of $11.415 billion to $11.425 billion for fiscal 2026, above its prior projection of $11.28 billion to $11.31 billion.
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AI has emerged as a major growth driver for the company, with rising AI-driven cyber threats expected to accelerate enterprise cybersecurity spending and strengthen demand for platform-based vendors such as Palo Alto Networks.
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The company provides integrated network, cloud, identity and AI security solutions.
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Palo Alto expects adjusted profit per share of $3.77 to $3.79 for fiscal 2026, up from its prior forecast of $3.65 to $3.70.
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Revenue for the third quarter grew 31% to $3 billion, above estimates of $2.94 billion, according to data compiled by LSEG.
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