Menu
Palo Alto Networks forecasts current-quarter profit below estimates, shares fall

Palo Alto Networks forecasts current-quarter profit below estimates, shares fall

Largely due to expenses related to its recent acquisitions and a hit from tariffs

Credit: Dreamstime

Cyber security company Palo Alto Networks forecast current-quarter profit below analysts' estimates on Wednesday, largely due to expenses related to its recent acquisitions and a hit from tariffs, sending its shares down 5 per cent.

The company forecast adjusted fourth-quarter profit in the range of US$1.41 per share to US$1.42 per share, below analysts' estimates of US$1.54, according to IBES data from Refinitiv.

The outlook includes an about US$2.5 million, or 2 cents per share, hit from tariffs, the company said.

Palo Alto has doubled down on acquisitions, particularly in cloud security. The company said on Wednesday it would buy Israel-based cyber security firms Twistlock for US$410 million in cash and PureSec for an undisclosed amount.

The company in March completed its acquisition of US-Israeli information security firm Demisto.

Palo Alto forecast current-quarter revenue of US$795 million to US$805 million, while analysts' were expecting US$797.4 million.

The disappointing forecast overshadowed a third-quarter revenue and profit beat.

Palo Alto's services revenue, which includes revenue from contract-based subscriptions for its security offerings, surged 28 per cent to US$448.2 million in the quarter.

The company's net loss narrowed to US$20.2 million, or 21 cents per share, in the three months ended April 30, from US$40.4 million, or 44 cents per share, a year earlier.

Excluding items, the company earned US$1.31 per share, beating the average analyst estimate of US$1.25.

Total revenue rose 28 per cent to US$726.6 million. Analysts on average had expected revenue of US$704 million.

(Reporting by Akanksha Rana in Bengaluru; Editing by Sriraj Kalluvila)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cyber securitypalo alto networks

Brand Post

Show Comments