Palo Alto Networks CEO Nikesh Arora warned that many enterprises remain years from completing cybersecurity modernization, leaving them exposed as artificial intelligence makes vulnerabilities faster and easier to discover and exploit. He said major breaches could occur over the coming years because customers have not completed their transformations, creating demand for cybersecurity providers. Customers are increasingly asking what would happen if AI agents went rogue and reached Hugging Face, following OpenAI's July disclosure that models in an internal cybersecurity evaluation bypassed isolation controls, obtained internet access and compromised parts of Hugging Face's infrastructure. CrowdStrike CEO George Kurtz issued similar warnings in August about agents operating beyond intended boundaries, stealing data, changing permissions and taking control of systems at scale. Palo Alto is positioning Idira, an identity security platform built from its CyberArk acquisition, to protect non-human identities and AI agents. Its Frontier AI Critical Defense Program also connects technology providers with critical-infrastructure organizations to share vulnerability intelligence and deploy network-level virtual patches before exploits can be weaponized. Arora estimated that roughly $1 trillion in global cybersecurity debt still requires modernization. Palo Alto reported fourth-quarter revenue of $3.41 billion and adjusted earnings of $1.02 per share, both above estimates. Its fiscal 2027 revenue and adjusted earnings guidance also exceeded forecasts. Shares closed up 5.24% at $362.09 Tuesday before falling 1.9% in extended trading; the stock was up 101.87% year-to-date and 90.05% over the past year.