Palo Alto Networks raised its full-year revenue forecast on Thursday, on expectations of a surge in demand for the company's cybersecurity solutions to tackle rising online threats.
Enterprise clients continue to invest in AI-powered cybersecurity products as they fear that rising digital scams and high-profile security incidents could impact their business operations and put their reputation at stake.
"In Q2, our strong business performance was fueled by customers adopting technology driven by the imperative of AI, including cloud investment and infrastructure modernisation," chief executive Nikesh Arora said.
Analysts believe Palo Alto is well-positioned to capitalise on the AI opportunity, as its proprietary data and large technology footprint provide a significant advantage in driving AI outcomes against competitors.
In January, Palo Alto said it would work with IBM UK on a multi-year project to develop the Emergency Services Network in Great Britain.
The company also said it had added Helle Thorning-Schmidt, former prime minister of Denmark, and Ralph Hamers, former chief executive of UBS Group AG and ING Group, to its board.
Palo Alto raised it fiscal year 2025 revenue forecast to between US$9.14 billion and US$9.19 billion, up from its prior projection of between US$9.12 billion and US$9.17 billion.
Analysts, on average, expect US$9.15 billion in revenue, according to data compiled by LSEG.
It projected third-quarter revenue of between US$2.26 billion and US$2.29 billion, compared with analysts' average estimate of US$2.27 billion.
Revenue for the second quarter ended January 31 grew 14 per cent to US$2.26 billion, slightly above estimates of US$2.24 billion.
The company's adjusted profit per share was 81 cents for the quarter, beating estimates of 78 cents.
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