Palo Alto Networks increased its revenue forecast for the full year on Thursday, anticipating a surge in demand for its cybersecurity solutions to combat the escalating online threats.
Enterprises are prioritizing investment in AI-powered cybersecurity products to mitigate the impact of digital scams and security incidents on their operations and reputation.
"Our strong performance in Q2 was driven by customers embracing AI-driven technology, cloud investments, and infrastructure upgrades," stated CEO Nikesh Arora.
Analysts view Palo Alto as well-positioned to leverage the AI opportunity, given its proprietary data and extensive technology presence that offer a competitive edge in AI advancements.
In January, Palo Alto announced a collaboration with IBM UK for a multi-year project to develop the Emergency Services Network in Great Britain.
The company appointed Helle Thorning-Schmidt, former prime minister of Denmark, and Ralph Hamers, former CEO of UBS Group AG and ING Group, to its board.
Palo Alto revised its fiscal year 2025 revenue forecast to be between $9.14 billion and $9.19 billion, up from the previous range of $9.12 billion to $9.17 billion. Analysts expect revenue to reach $9.15 billion, according to data from LSEG.
For the third quarter, the company projects revenue between $2.26 billion and $2.29 billion, slightly higher than analysts' average estimate of $2.27 billion.
Revenue for the second quarter, ending January 31, increased by 14% to $2.26 billion, slightly surpassing estimates of $2.24 billion.
The company reported an adjusted profit per share of 81 cents for the quarter, exceeding estimates of 78 cents.