Palo Alto Networks reported fiscal fourth-quarter results that surpassed Wall Street estimates, as the growing threat of AI-powered cyberattacks continues to drive demand for its security platforms. The company’s shares added about 2% in extended trading, following a 5% decline during the regular session.
Here’s how the company performed relative to LSEG estimates, according to CNBC:
- Revenue: Increased 34% year over year to $2.54 billion in the quarter, topping analyst expectations.
- Net loss: Palo Alto recorded 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 same period last year.
The shift toward AI-enabled attacks is forcing customers to build faster and more sophisticated cyber defenses, CEO Nikesh Arora told CNBC. While those concerns have already translated into business momentum, Arora emphasized that the opportunity remains early.
“This is a long-term tailwind, and it will not happen in one quarter — it will not happen in two,” he said. “It just underpins the long-term duration from a growth rate perspective for our business.”
Shares of Palo Alto Networks have nearly doubled this year, driven by the rise of highly capable AI models such as Anthropic’s Mythos, which have spurred demand for newer security tools designed to detect and respond to agentic cyberattacks. Concerns around agentic AI have intensified following breaches like the OpenAI-Hugging Face hack, which demonstrated how autonomous agents can plan and orchestrate attacks without human intervention.
Palo Alto is not alone in benefiting from the AI security boom. Last week, CrowdStrike and Okta both surged on strong earnings and guidance as customers increase spending on cybersecurity tools.
Arora said Palo Alto has conducted more than 2,000 customer briefings since the Anthropic Mythos launch, up from roughly 1,200 disclosed in the prior quarter.
Guidance and acquisitions
For the fiscal first quarter, Palo Alto expects revenue of $3.30 billion to $3.31 billion, above the analyst consensus of $3.22 billion. For the full fiscal year, the company forecast revenue of $14.10 billion to $14.20 billion and adjusted earnings of $4.16 to $4.19 per share, both exceeding expectations of $13.79 billion and $4.11, respectively.
The company also announced plans to acquire Console, an agentic AI startup, as it deepens its AI security offerings. The deal adds to a rapid acquisition spree under Arora, who has closed a $25 billion agreement to buy identity security firm CyberArk and a $3.4 billion purchase of Chronosphere over the past year.
“I see the cyber startup ecosystem as a large lab where people are trying different things,” Arora said, adding that Palo Alto can turn to acquisitions if its internal development efforts fall short.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/01/palo-alto-networks-panw-q4-2026-earnings.html
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