Palo Alto Networks beats estimates as AI security demand drives growth

Palo Alto Networks beat fiscal fourth-quarter estimates on Tuesday, driven by surging demand for AI-related cybersecurity tools, though shares dipped about 2% in extended trading after a 5% regular-session decline. The company reported adjusted earnings per share of $1.02 versus 98 cents expected, and revenue of $3.41 billion against $3.35 billion expected, a 34% jump year-over-year. It posted a net loss of $282 million, down from a $254 million profit a year ago, as CEO Nikesh Arora cited accelerating AI attacks pushing customers toward faster defenses. Arora said the AI security trend is a long-term tailwind, with over 2,000 customer briefings held since Anthropic's Mythos launch. The firm announced plans to acquire agentic AI startup Console, adding to recent deals including a $25 billion CyberArk purchase and $3.4 billion Chronosphere acquisition. It guided first-quarter revenue to $3.30-$3.31 billion and full-year revenue to $14.10-$14.20 billion, both above analyst forecasts.