Palo Alto Networks CEO Nikesh Arora said companies will need to create a new security stack (layered cybersecurity systems) for about $5 trillion in AI infrastructure capital spending he expects over the next five years. He also said AI is forcing businesses to modernize roughly $1 trillion of aging cybersecurity infrastructure that cannot handle automated attacks operating at machine speed. Arora based that estimate on security equipment lasting about seven years and annual industry spending of $200 billion to $300 billion. The comments came on CNBC’s Mad Money on Tuesday after Palo Alto Networks reported fiscal fourth-quarter results above Wall Street expectations. Quarterly revenue rose 34% year over year to $3.41 billion, compared with the $3.35 billion analyst estimate, while adjusted earnings reached $1.02 per share, four cents above expectations. Next-generation Security annual recurring revenue (recurring subscription revenue) increased 63% to $9.10 billion, and remaining performance obligations (contracted revenue not yet recognized) rose 34% to $21.2 billion. The company forecast fiscal 2027 revenue of $14.10 billion to $14.20 billion, ahead of analysts’ $13.79 billion estimate. Arora cited the launch of Anthropic’s Mythos model earlier this year as a turning point, saying its ability to identify and exploit software vulnerabilities pushed companies to take cybersecurity more seriously.