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Palo Alto Networks shares fall 11% after fiscal fourth-quarter results
The drop came even after the company reported fiscal Q4 revenue growth of 34% year over year to $3.41 billion.
Palo Alto Networks shares fell about 11% to roughly $322 apiece on Wednesday, Sept. 2, after investors reacted negatively to the company’s fiscal fourth-quarter results despite them beating Wall Street expectations, according to LiveMint Markets.
The report showed revenue rising 34% year over year to $3.41 billion, with adjusted earnings between $4.16 and $4.19 per share. The company also said it added nearly $1 billion of net new NGS ARR in a single quarter, as it pointed to AI advancements in cybersecurity.
Looking ahead, Palo Alto Networks forecast first-quarter revenue of $3.30 billion to $3.31 billion, above analysts’ expectations of $3.21 billion. For the full fiscal year, it projected total revenue of $14.10 billion to $14.20 billion, implying year-over-year growth of 23% to 24%.
The company also announced it will acquire Console, described as an AI-native platform for agentic workflows across enterprise operations, with expectations that the deal will expand its Cortex platform for broader enterprise transformation. The stock’s decline marked a second straight day of losses and the weakest close in more than a month.