The cybersecurity firm’s fiscal Q3 results surpassed Wall Street expectations, easing concerns over AI-driven disruption in the sector.
Palo Alto Networks reported fiscal third-quarter revenue of $3 billion, a 31% year-over-year increase, exceeding the $2.94 billion consensus estimate. Adjusted earnings per share rose 6% to 85 cents, beating the 80-cent estimate.
The company’s strong performance follows a period of volatility driven by fears that AI advancements could disrupt traditional cybersecurity solutions. Prior to earnings, shares had rallied 61% year-to-date and 85% since late March.
Shares showed volatility in after-hours trading but remained roughly flat, reflecting investor reaction to the results and forward guidance.