Palo Alto Networks forecast fiscal 2026 revenue and profit above Wall Street estimates, driven by growing demand for its AI-powered cybersecurity solutions. The company’s strong outlook reflects an AI-driven upgrade cycle as enterprises accelerate cloud adoption and modernize security operations amid a wave of high-profile cyberattacks.
Key financial projections: Palo Alto’s guidance significantly exceeded analyst expectations across multiple metrics.
- The company projected annual revenue between $10.48 billion and $10.53 billion, above analysts’ average estimate of $10.43 billion.
- Adjusted profit per share is expected to reach $3.75 to $3.85, surpassing estimates of $3.67 for the fiscal year.
- First-quarter revenue forecast of $2.45 billion to $2.47 billion came in above expectations of $2.43 billion.
What’s driving growth: Rising cybersecurity threats and AI adoption are fueling demand for Palo Alto’s solutions.
- A wave of high-profile cyberattacks has hit global companies including Microsoft, UnitedHealth Group, Walt Disney, and Oracle, prompting increased need for robust security solutions.
- The company is benefiting from an AI-driven upgrade cycle as enterprises accelerate their cloud adoption and modernize security operations.
- New product launches include cloud security platform Cortex Cloud and security platform Prisma AIRS designed to protect AI applications.
Major acquisition and leadership changes: Palo Alto announced significant strategic moves to deepen its cybersecurity offerings.
- The company’s planned $25 billion CyberArk acquisition will expand its cybersecurity capabilities.
- Founder and Chief Technology Officer Nir Zuk will retire after over 20 years with the company.
- Long-time product leader Lee Klarich has been named as the new CTO and board member, and will chair the board’s security committee to bolster the company’s AI-driven platform strategy.
Strong quarterly performance: Palo Alto reported upbeat fourth-quarter results that beat expectations.
- Revenue grew 16% to $2.54 billion from a year ago for the quarter ended July 31.
- The company reported adjusted earnings per share of 95 cents, beating estimates of 88 cents.
Competitive landscape: Palo Alto competes with major cybersecurity players including CrowdStrike, Fortinet, and Zscaler.
- Its customers include enterprise giants such as Salesforce, Dell Technologies, and NetApp.
- Shares rose nearly 5% in extended trading following the announcement.
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