Palo Alto Networks shares fell 6 percent after it reported fiscal second-quarter results.
The company posted results that beat expectations, but investor disappointment grew after its third-quarter earnings outlook fell short of expectations.
As Palo Alto Networks expands into AI-based cybersecurity, weak guidance is acting as a risk factor, CNBC reported.
Second-quarter revenue rose 15 percent from a year earlier to $2.6 billion. Net profit also increased to $432 million, or 61 cents per share.
But its third-quarter earnings guidance of 78 to 80 cents per share was below the market estimate of 92 cents. Its revenue outlook was raised to $2.94 billion to $2.95 billion.
Palo Alto Networks announced the acquisition of Israeli cybersecurity startup Koito to strengthen AI-based security. Palo Alto Networks CEO Nikesh Arora (니케시 아로라) stressed that “AI is accelerating the shift toward security platforms, and customers are focusing on modernising them.”
Chi-gyu Hwang
delight@d-today.co.kr