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Palo Alto Networks earnings exceed estimates amid worries about cybersecurity

Mount Equity Group Tokyo, Japan > News > Tech > Palo Alto Networks earnings exceed estimates amid worries about cybersecurity

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PANWNikesh Arora, CEO of Palo Alto Networks and formerly SoftBank Group Corp. President and COO, speaks during the SoftBank Academia Special Lecture with Chairman and CEO Masayoshi Son in Tokyo on October 22, 2015.KAZUHIRO NOGI | AFP | Getty Images

Palo Alto Networks shares rose as much as 6% in extended trading on Thursday after the security hardware and software company announced fiscal second-quarter earnings that were healthier than analysts had expected.

Here’s how the company did:

Earnings: $1.38 per share, adjusted, vs. $1.28 per share as expected by analysts, according to Refinitiv.Revenue: $1.07 billion, vs. $1.06 billion as expected by analysts, according to Refinitiv.

Revenue grew 24% year over year in the quarter, which ended on April 30, compared with 25% growth in the previous quarter, according to a statement.

CEO Nikesh Arora said in the statement that there’s greater attention on cybersecurity because remote working became popular during the pandemic, as well as a spate of recent cybersecurity issues — presumably including attacks on Microsoft‘s Exchange Server software, vulnerabilities in SolarWinds software and the recent ransomware attack against Colonial Pipeline that shut down a key fuel pipeline.

Palo Alto Networks isn’t the only company looking to capitalize on security anxiety. In the