Palo Alto Networks reported fiscal fourth-quarter results that topped analyst expectations, driven by heightened corporate demand for cybersecurity solutions amid growing artificial intelligence threats. Revenue increased 34% to reach $2.54 billion compared with the prior year, while the company posted a net loss of $282 million, or 35 cents per share, versus net income of $254 million, or 36 cents per share, a year earlier.
The company attributed the performance to accelerating concerns about AI-enabled cyberattacks forcing organizations to strengthen their defensive capabilities. Chief Executive Nikesh Arora characterized the opportunity as a long-term growth driver that would unfold gradually over multiple quarters and years. He noted that Palo Alto had conducted over 2,000 customer briefings in recent periods, compared with approximately 1,200 the previous quarter, as companies sought to address emerging threats from sophisticated AI models and autonomous attack capabilities.
The shares declined approximately 2% in after-hours trading following a 5% drop during the regular trading session. For the year to date, the stock had nearly doubled as investor appetite for cybersecurity companies intensified. Competitors including CrowdStrike and Okta also posted strong results and guidance, signaling broad-based spending across the sector.
Palo Alto continued its acquisition strategy, announcing the purchase of AI startup Console while building on recent major deals. The company had previously acquired identity security firm CyberArk for $25 billion and Chronosphere for nearly $3.4 billion. Management indicated a willingness to pursue additional acquisitions if internal development efforts proved insufficient.
Looking ahead, Palo Alto projected first-quarter revenue between $3.30 billion and $3.31 billion, surpassing the $3.22 billion analyst estimate. For the full year, the company forecast revenue of $14.10 billion to $14.20 billion and adjusted earnings per share of $4.16 to $4.19, exceeding consensus expectations of $13.79 billion in revenue and $4.11 in adjusted EPS.
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