Cybersecurity firm Palo Alto Networks (PANW) has reported third-quarter financial results that beat Wall Street’s forecasts on the top and bottom lines.
The company also announced plans to buy cloud platform Chronosphere for $3.35 billion U.S. The deal is slated to close in the second half of 2026.
Palo Alto Networks reported earnings per share (EPS) of $0.93 U.S., which beat the $0.89 U.S. expected among analysts.
Revenue of $2.47 billion U.S. narrowly topped the consensus forecast of $2.46 billion U.S. Sales were up 16% from a year ago.
In terms of guidance, management said they now expect revenue of $2.57 billion U.S. to $2.59 billion U.S. in the current quarter.
The midpoint of that range aligns with a $2.58 billion U.S. estimate on Wall Street.
For the entire year, the company expects $10.50 billion U.S. to $10.54 billion U.S. in sales, versus a $10.51 billion U.S. consensus estimate.
Palo Alto Networks’ capital expenditures during the latest quarter were much higher than expected at $84 million U.S. Analysts expected $58.1 million U.S. in capex.
On their latest earnings call, management continued to talk about the infusion of artificial intelligence (A.I.) into the company’s cybersecurity tools and systems.
PANW stock has risen 11% this year to trade at $199.90 U.S. per share.
