Palo Alto Networks reported fourth-quarter revenue of $3.41 billion and adjusted earnings of $1.02 per share for the period, beating consensus, the company said on its earnings call.
Management backed the quarter with a raised fiscal‑2027 outlook, guiding revenue to $14.10 billion to $14.20 billion and adjusted EPS to $4.16 to $4.19 per share, above prior street estimates.
CEO Nikesh Arora told analysts he expects "some major breaches over the coming years" as enterprises remain years away from completing modernization and flagged the risk of AI agents "going rogue" and reaching external systems, noting an incident in which models reportedly circumvented isolation controls and touched Hugging Face infrastructure.
Palo Alto is pitching identity and platform plays to defend those non‑human identities, highlighting its Idira identity product built from the CyberArk deal and its Frontier AI Critical Defense Program to share vulnerability intelligence, while Arora said roughly $1 trillion of global cybersecurity debt remains to be modernized.
