Palo Alto Networks delivered quarterly results that exceeded analyst expectations, with revenue increasing 34% from the prior year to $2.54 billion during the fiscal fourth quarter. However, the company reported a net loss of $282 million, or 35 cents per share, compared with net income of $254 million, or 36 cents per share, in the year-ago period. Shares declined about 2% in extended trading following a 5% drop during regular market hours.
The company attributed strong performance to heightened customer demand for cybersecurity solutions amid escalating artificial intelligence-related threats. Chief Executive Officer Nikesh Arora characterized the AI security tailwind as a long-term growth driver rather than a short-term phenomenon, noting it would unfold across multiple quarters. He emphasized that organizations are being forced to upgrade aging cyber infrastructure in response to emerging threats from advanced AI systems. The company disclosed it had conducted over 2,000 customer briefings, up from approximately 1,200 the previous quarter, following recent developments in AI security concerns.
Palo Alto announced the acquisition of AI startup Console to expand its artificial intelligence security capabilities, continuing an aggressive acquisition strategy. Over the past year-plus, the company has completed major deals including a $25 billion acquisition of identity security firm CyberArk and a nearly $3.4 billion acquisition of Chronosphere. Arora indicated the company views the cyber startup ecosystem as a testing ground for emerging security approaches and remains willing to pursue acquisitions if internal development efforts prove insufficient.
The company issued forward-looking guidance exceeding analyst consensus. For the first quarter, Palo Alto projected revenue of $3.30 billion to $3.31 billion compared with analyst estimates of $3.22 billion. Full-year guidance called for revenue between $14.10 billion and $14.20 billion and adjusted earnings per share of $4.16 to $4.19, surpassing the $13.79 billion revenue and $4.11 EPS estimates.
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