Palo Alto Networks posted fiscal fourth-quarter results that surpassed analyst expectations, with revenue climbing 34% to reach $2.54 billion compared to the prior year. The company reported a net loss of $282 million, or 35 cents per share, reversing from net income of $254 million, or 36 cents per share, in the year-ago period.
Chief Executive Officer Nikesh Arora attributed the strong revenue performance to escalating concerns among enterprises regarding artificial intelligence-driven cyber threats. He characterized the AI security demand as a durable growth driver for the company, noting it would develop over an extended timeframe rather than materializing within a single quarter or two. Arora indicated the company has conducted more than 2,000 customer briefings following recent developments in advanced AI systems, up from approximately 1,200 disclosed in the preceding quarter.
Palo Alto Networks announced the acquisition of AI startup Console to expand its security offerings in the artificial intelligence domain. This deal represents part of an accelerated acquisition strategy under Arora’s leadership, which has included the $25 billion purchase of identity security company CyberArk and the nearly $3.4 billion acquisition of Chronosphere, marking the company’s largest deals to date.
The company provided forward guidance indicating first-quarter revenue between $3.30 billion and $3.31 billion, exceeding the analyst consensus estimate of $3.22 billion. For the full year, Palo Alto Networks projected revenue in the range of $14.10 billion to $14.20 billion and adjusted earnings per share of $4.16 to $4.19, both surpassing consensus forecasts of $13.79 billion in revenue and $4.11 in adjusted EPS.
During regular trading, shares declined approximately 5%, with an additional 2% drop in extended trading following the earnings announcement.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI