Big Demand for Cyber Protection Powers Palo Alto Networks Results, Outlook

Cheng Xin / Getty Images Along with the results, the company also announced that its founder, Nir Zuk, was retiring as Chief Technical Officer and stepping down as a member of the board

Key Takeaways

Palo Alto Networks beat profit and sales estimates on increased demand for tougher tools to fight hackers. The cybersecurity firm also gave better-than-anticipated guidance. Palo Alto Networks founder Nir Zuk stepped down as Chief Technical Officer and member of the board.

Shares of Palo Alto Networks (PANW) jumped 7% Tuesday, a day after the cybersecurity firm posted better-than-expected results and guidance as customers demanded increasingly powerful tools to fight hackers.

The company reported fiscal 2025 fourth-quarter adjusted earnings per share (EPS) of $0.95, with revenue up 16% year-over-year to $2.54 billion. Both exceeded estimates of analysts surveyed by Visible Alpha.

CEO Nikesh Arora said the performance "reflects a fundamental market shift in which customers understand that a fragmented defense is no defense at all against modern threats. They are partnering with us because our platforms are designed to work in concert, creating powerful operational synergies that deliver superior, near real-time outcomes and the efficiency our customers need."

Palo Alto Networks sees fiscal 2026 adjusted EPS of $3.75 to $3.85, and revenue of $10.475 billion to $10.525 billion. Visible Alpha forecasts were for $3.67 and $10.431 billion, respectively. Its current-quarter profit and revenue projections also topped estimates.

Founder and CTO Zuk Retires

Along with the results, the company also announced that its founder, Nir Zuk, was retiring as Chief Technical Officer and stepping down as a member of the board. Zuk is being replaced by Chief Product Officer Lee Klarich in both positions.

The news sent Palo Alto Network shares into positive territory for the year. Tradingview

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