New York, Aug. 18, 2025 — Palo Alto Networks reported stronger-than-expected earnings and revenue on Monday, while also announcing that founder and Chief Technology Officer Nir Zuk will retire after two decades of leadership.
The cybersecurity giant said its fiscal fourth-quarter performance exceeded Wall Street expectations, driven by demand for its software platforms and continued expansion into identity security. The results come shortly after the company unveiled a $25 billion acquisition of Israeli identity security provider CyberArk, its largest deal since its founding in 2005.
Earnings Beat and Strong Outlook
For the fiscal fourth quarter, Palo Alto posted adjusted earnings of 95 cents per share, surpassing the 88 cents expected by analysts. Revenue reached $2.54 billion, slightly ahead of the $2.5 billion consensus, and marked a 16% year-over-year increase from $2.2 billion.
Net income fell to $254 million, or 36 cents per share, compared to $358 million, or 51 cents per share, in the same period last year. Despite this decline in profitability, the company’s growth trajectory remained strong, bolstered by demand for advanced cybersecurity solutions in a rapidly evolving digital landscape.
Looking ahead, Palo Alto issued upbeat guidance for both the first quarter and the full fiscal year. The company expects first-quarter adjusted earnings between 88 and 90 cents per share, higher than the 85 cents projected by analysts. Full-year revenue is forecast between $10.48 billion and $10.53 billion, with adjusted earnings in the range of $3.75 to $3.85 per share—both figures above market expectations.
The company also reported purchase obligations of $15.4 billion to $15.5 billion for the upcoming quarter, beating the $15.07 billion estimate. This backlog underscores robust customer demand and long-term commitments for Palo Alto’s services.
Leadership Transition and Growth Strategy
A major announcement alongside earnings was the retirement of founder Nir Zuk, who established Palo Alto Networks in 2005 and has since played a pivotal role in shaping the company’s technological foundation. Nir Zuk’s retirement marks the end of an era, as he steps down from both his role as CTO and his board position.
Lee Klarich, the company’s chief product officer, will succeed Nir Zuk as CTO and join the board of directors. Klarich, a veteran within Palo Alto, is expected to continue the company’s innovation-driven strategy, particularly as it integrates CyberArk’s capabilities into its product portfolio.
Under the leadership of CEO Nikesh Arora, who took the helm in 2018, Palo Alto has embarked on an aggressive expansion strategy through acquisitions. The $25 billion purchase of CyberArk represents the company’s boldest move yet, as it seeks to establish a comprehensive identity and access management offering alongside its established firewall and cloud security platforms.
“This is going to be a different challenge, but we’ve done well 24 times before,” Arora told CNBC, highlighting the company’s history of successful acquisitions. “I’m confident our team can execute at scale.”
Despite near-term investor caution following the CyberArk announcement, Palo Alto’s long-term growth prospects remain supported by the rising global demand for advanced cybersecurity solutions, particularly as enterprises adopt artificial intelligence, cloud infrastructure, and zero-trust frameworks.
Shares of Palo Alto rose about 5% in extended trading on Monday following the earnings release, though they remain down approximately 3% year-to-date.
With strong quarterly results, an ambitious acquisition strategy, and a leadership transition at the top, Palo Alto Networks is positioning itself for sustained growth in the rapidly expanding cybersecurity market. The retirement of Nir Zuk underscores a significant shift for the company, but the combination of Klarich’s technical leadership and Arora’s strategic vision suggests a continued focus on innovation and expansion.
