Palo Alto Networks Reports Q2 Growth Driven by AI Demand, Stock Declines

The cybersecurity firm exceeded quarterly revenue and earnings estimates but saw shares drop following projections in line with analyst expectations.

Palo Alto Networks reported Q2 revenue of $2.26 billion, a 14% year-over-year increase, slightly surpassing analyst estimates of $2.24 billion.
Adjusted earnings per share for the quarter were $0.81, beating forecasts of $0.78 per share.
The company raised its full-year revenue forecast to between $9.14 billion and $9.19 billion, reflecting steady demand for its AI-driven cybersecurity solutions.
Despite the strong quarterly performance, shares fell approximately 5% as forward guidance for Q3 and fiscal year earnings aligned closely with consensus expectations.
Palo Alto expanded its board of directors to 11 members, adding former Danish Prime Minister Helle Thorning-Schmidt and ex-UBS CEO Ralph Hamers.