Palo Alto Beats Q4 Estimates, Buys Console as AI Threats Lift 34% Revenue Growth

3 articles · Updated · CNBC · Sep 1

Palo Alto Networks topped fiscal fourth-quarter estimates with adjusted EPS of $1.02 on $3.41 billion in revenue, and said it will acquire agentic AI startup Console to expand its AI security lineup.
Revenue rose 34% from a year earlier as customers stepped up spending on cyber defenses against faster, more autonomous AI-driven attacks, which CEO Nikesh Arora called a long-term growth tailwind.
The company still posted a net loss of $282 million, versus net income of $254 million a year earlier, while its shares gained about 2% after hours after falling 5% in regular trading.
Guidance also came in ahead of expectations: Palo Alto forecast first-quarter revenue of $3.30 billion to $3.31 billion and full-year revenue of $14.10 billion to $14.20 billion, both above analyst estimates.
Palo Alto has nearly doubled this year and is accelerating dealmaking after more than 2,000 customer briefings since Anthropic's Mythos launch, as rivals including CrowdStrike and Okta also benefit from the AI security spending wave.

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