Palo Alto raises annual forecasts on strong AI cybersecurity demand, shares surge

June 2 (Reuters) - Palo Alto Networks raised its annual revenue and profit forecast on Tuesday, as enterprises increased spending on cloud, identity and AI-driven cybersecurity products amid a rising threat landscape, sending shares up 7.4% in extended trading.

 

Here are some details on the results:

 

• Santa Clara, California-based Palo Alto expects revenue of $11.415 billion to $11.425 billion for fiscal 2026, above its prior projection of $11.28 billion to $11.31 billion.

 

• AI has emerged as a major growth driver for the company, with rising AI-driven cyber threats expected to accelerate enterprise cybersecurity spending and strengthen demand for platform-based vendors such as Palo Alto Networks.

 

• The company provides integrated network, cloud, identity and AI security solutions.

 

• Palo Alto expects adjusted profit per share of $3.77 to $3.79 for fiscal 2026, up from its prior forecast of $3.65 to $3.70.

 

• Revenue for the third quarter grew 31% to $3 billion, above estimates of $2.94 billion, according to data compiled by LSEG.

 

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shreya Biswas)