Palo Alto Networks beats quarterly estimates on AI demand, continues acquisition spree

Skip Navigation cnbc.com Palo Alto Networks beats quarterly estimates on AI demand, continues acquisition spree Livestream CREATE FREE ACCOUNT Markets Pre-Markets U.S. Markets Currencies Prediction Markets Cryptocurrency Futures & Commodities Bonds Funds & ETFs Business Economy Finance Health & Science Media Real Estate Energy Climate Transportation Investigations Industrials Retail Wealth Sports Life Small Business Investing Personal Finance Fintech Financial Advisors Options Action ETF Street Buffett Archive Earnings Trader Talk Tech Cybersecurity AI Enterprise Internet Media Mobile Social Media CNBC Disruptor 50 Tech Guide Politics & Policy White House Policy Defense Congress Expanding Opportunity Video Latest Video Full Episodes Livestream Live Audio Live TV Schedule CNBC Podcasts CEO Interviews CNBC Documentaries Digital Originals Watchlist Investing Club Trust Portfolio Analysis Trade Alerts Meeting Videos Homestretch Jim’s Columns Education Subscribe PRO Pro News Josh Brown Mike Santoli Calls of the Day My Portfolio Livestream Full Episodes Stock Screener Market Forecast Options Investing Chart Investing Subscribe Livestream Menu Make It select USA INTL Livestream Search quotes, news & videos Livestream Watchlist SIGN IN Create free account Palo Alto Networks beats quarterly estimates on AI demand, continues acquisition spree Livestream CREATE FREE ACCOUNT Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu Tech Palo Alto Networks beats quarterly estimates on AI demand, continues acquisition spree Published Tue, Sep 1 2026 4:22 PM EDT Updated 4 Min Ago Samantha Subin@samantha_subin WATCH LIVE Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email Key Points Palo Alto Networks topped estimates as AI risks spur demand for its cybersecurity tools. CEO Nikesh Arora told CNBC that accelerating attacks are forcing customers to build better and faster cyber defenses. Palo Alto announced plans to buy AI agent startup Console as it broadens its acquisition spree and AI push. In this article ANTHR.FG+316.03 (+115.77%) PANW-10.08 (-2.78%) Follow your favorite stocks CREATE FREE ACCOUNT Nikesh Arora, chief executive officer at Palo Alto Networks Inc., at the AI Impact Summit in New Delhi, India, on Thursday, Feb. 19, 2026. Ruhani Kaur | Bloomberg | Getty Images Palo Alto Networks surpassed fiscal fourth-quarter estimates as mounting artificial intelligence risks boost demand for its cybersecurity tools. Shares gained about 5% in extended trading, following a 5% drop during regular trading. Here’s how the company did versus LSEG estimates: Earnings per share: $1.02 adjusted vs. 98 cents expected Revenue: $3.41 billion vs. $3.35 billion expected. Revenue jumped 34% during the quarter from $2.54 billion a year ago, the company said. Palo Alto reported a net loss of $282 million, a loss of 35 cents per share, down from net income of $254 million, or 36 cents per share, a year ago. The acceleration of AI attacks is forcing customers to build better and faster cyber defenses, CEO Nikesh Arora told CNBC. Those concerns have already moved the needle, but the long-term growth runway is still in the early stages. “This is a long-term tailwind, and it will not happen in one quarter. It will not happen in two, but it just underpins the long-term duration from a growth rate perspective for our business,” Arora said. Shares of Palo Alto Networks have nearly doubled this year as the rise of highly capable AI models like Anthropic’sMythos spurs demand for newer security tools to detect and respond to agentic cyberattacks. Those concerns have accelerated as breaches, like the OpenAI-Hugging Face hack, prove that agents can increasingly plan and orchestrate attacks autonomously. Palo Alto Networks, Inc. RT Quote | Last NASDAQ LS, VOL From CTA | USD After Hours: Last | 4:28 PM EDT 352.01-10.08 (-2.78%) 362.09-20.04 (-5.24%) Close WATCHLIST+ Quote Details Palo Alto Networks stock chart. Arora said the company has held over 2,000 customer briefings, up from the roughly 1,200 it disclosed last quarter, in the wake of the Anthropic Mythos launch. Palo Alto also said it plans to buy agentic AI startup Console as it deepens its AI security offerings. Over the last year, Arora has accelerated an aggressive dealmaking push, which included a mega $25 billion deal for identity security firm CyberArk and the acquisition of Chronosphere for $3.4 billion. “I see the cyber startup ecosystem as a large lab where people are trying different things,” Arora said, adding that Palo can look to acquire from the space if its internal approach isn’t working. Palo Alto issued upbeat guidance, expecting $3.30 billion to $3.31 billion in revenue for the first quarter, topping an analyst estimate of $3.22 billion. For the full year, the company forecasted between $14.10 billion and $14.20 billion in revenue and adjusted EPS of $4.16 to $4.19. That surpassed the $13.79 billion revenue and $4.11 EPS forecast. Read more CNBC tech news He beat Big Tobacco. Will the same playbook work against Meta and social media? OpenAI to end model access to Cursor after acquisition by Elon Musk’s SpaceX Tech backlash reaches fever pitch as AI angst collides with social media fears Apple hikes subscription prices for Apple TV and Apple One in the U.S. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. WATCH LIVESTREAMPrefer to Listen? 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