Palo Alto Networks boosted its yearly revenue and earnings projections on Tuesday following robust demand for artificial intelligence and cloud-based cybersecurity services, causing the company’s stock to jump 7.4% in after-hours trading.
The cybersecurity firm, headquartered in Santa Clara, California, now anticipates fiscal 2026 revenue between $11.415 billion and $11.425 billion, marking an increase from its previous estimate of $11.28 billion to $11.31 billion.
Artificial intelligence has become a significant growth catalyst for the business, as increasing cyber threats powered by AI technology are driving companies to boost their cybersecurity investments and seek comprehensive platform solutions like those offered by Palo Alto Networks.
The firm specializes in delivering comprehensive network, cloud, identity and artificial intelligence security services.
For fiscal 2026, Palo Alto Networks projects adjusted earnings per share ranging from $3.77 to $3.79, representing an improvement from its earlier guidance of $3.65 to $3.70.
Third-quarter revenue climbed 31% to reach $3 billion, surpassing analyst expectations of $2.94 billion based on LSEG data.
