Palo Alto Networks reported fiscal fourth-quarter revenue of $3.41 billion , a 34% increase from a year earlier, beating analyst estimates of $3.35 billion. Adjusted earnings came in at $1.02 per share, above the 98-cent estimate, according to CNBC .
Palo Alto Networks stock jumped as much as 5% in after-hours trading once results hit, but the gain evaporated and shares finished the extended session about 2% lower. The stock had also dropped about 5% during the regular session.
On a GAAP basis, the company swung to a net loss of $282 million, or 35 cents per share, from a profit of $254 million, or 36 cents per share, in the year-earlier period. The company's next-generation security ARR reached $9.1 billion, up 63% from a year ago, while remaining performance obligations climbed 34% to $21.2 billion, Palo Alto said.
Chief Executive Officer Nikesh Arora attributed the results to rising demand tied to AI-driven threats. "The latest advancements in AI are elevating cybersecurity to the top of the CIO priority list, and will serve as durable tailwinds as we progress towards our $20 billion FY30 NGS ARR target," Arora said in a statement. He told CNBC that rapidly evolving AI-powered attacks are pressing customers to shore up their defenses more quickly, and described the dynamic as "a long-term tailwind" that he expects to underpin the business across many quarters.
Alongside the earnings release, Palo Alto announced the acquisition of Console , an AI startup the company said will deepen agentic capabilities in its Cortex platform. The Console deal is part of a broader buying spree that has seen Palo Alto spend $25 billion on identity security firm CyberArk and close to $3.4 billion on Chronosphere.
For the fiscal first quarter of 2027, the company guided for revenue of $3.30 billion to $3.31 billion, ahead of analyst expectations of $3.22 billion. For all of fiscal 2027, Palo Alto set a revenue outlook of $14.10 billion to $14.20 billion alongside adjusted EPS guidance of $4.16 to $4.19, both clearing Wall Street's targets of $13.79 billion and $4.11, respectively.
Palo Alto Networks stock had climbed more than 5% to record highs in late August after the Black Hat cybersecurity conference in Las Vegas, where demand for AI security tools dominated industry conversations. BTIG analysts at that time raised their price target on Palo Alto Networks stock to $380 per share, citing the company's identity platform and AI-focused offerings. The stock has nearly doubled this year.
