Cybersecurity firm tops revenue and earnings estimates, lifts full-year guidance amid strong AI-driven demand for security tools.
Palo Alto Networks reported fiscal third-quarter revenue of $3.00 billion, beating estimates of $2.94 billion, as demand for advanced cybersecurity tools accelerates. Earnings per share reached 85 cents adjusted, above the 80 cents expected. Revenue grew 31% year-over-year, including $388 million from recent acquisitions.
The company posted a net loss of $177 million, or 22 cents per share, compared to net income of $262 million, or 37 cents per share, a year earlier. Earlier guidance had disappointed analysts, but the firm now expects fourth-quarter revenue of $3.35 billion to $3.36 billion, above the $3.28 billion estimate.
Shares jumped 12% in extended trading, extending a year-to-date rally of over 60%. The company attributed the strong performance to heightened urgency around cybersecurity driven by AI advancements.