Palo Alto Networks reported fiscal 2026 fourth-quarter revenue of $3.4 billion, up 34% from a year earlier and above analysts’ $3.3 billion estimate, while adjusted earnings per share reached $1.02. Full-year revenue rose 25% to $11.5 billion, adjusted net income increased 25% to $2.9 billion and cash flow reached $4.4 billion. The company forecast fiscal 2027 revenue of $14.1 billion to $14.2 billion, above the $13.79 billion consensus, with adjusted earnings per share of $4.16 to $4.19. CEO Nikesh Arora said concerns that frontier artificial intelligence would make cybersecurity and software companies obsolete now appear clearly overblown. Instead, increasingly capable AI attacks are pushing security higher on corporate technology agendas. Palo Alto has briefed more than 2,000 customers since Anthropic introduced its Mythos model, up from about 1,200 in the prior quarter. The company is also acquiring AI startup Console and integrating CyberArk’s identity-security business, rebranded as Idira, into its broader platform. Despite the results, shares fell 9% before the release, another 5% during regular trading afterward and more than 2% in after-hours trading. The stock has nevertheless nearly doubled year to date, giving Palo Alto a market capitalization approaching $322 billion. CrowdStrike and Okta have also reported stronger-than-expected developments, pointing to accelerating enterprise demand for security tools against AI-driven threats.