Palo Alto Networks (PANW.O) raised its full-year revenue forecast on Thursday, citing increased demand for its cybersecurity solutions amid rising online threats.
Enterprise clients are investing heavily in AI-powered cybersecurity products, fearing that escalating digital scams and high-profile security breaches could disrupt business operations and damage reputations.
“In Q2, our strong business performance was fueled by customers adopting technology driven by the imperative of AI, including cloud investment and infrastructure modernization,” CEO Nikesh Arora said. Analysts believe Palo Alto is well-positioned to leverage AI advancements, as its proprietary data and extensive technology infrastructure give it a competitive edge in delivering AI-driven security solutions.
In January, Palo Alto announced a partnership with IBM UK for a multi-year project to develop the Emergency Services Network in Great Britain. The company also 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 raised its fiscal year 2025 revenue forecast to a range of $9.14 billion to $9.19 billion, up from its previous estimate of $9.12 billion to $9.17 billion. Analysts, on average, expect revenue to reach $9.15 billion, according to data compiled by LSEG. For the third quarter, the company projects revenue between $2.26 billion and $2.29 billion, aligning with analysts' expectations of $2.27 billion.
For the second quarter, which ended on January 31, Palo Alto reported a 14% revenue increase to $2.26 billion, slightly surpassing estimates of $2.24 billion
