21 May 2025
If you are covering Palo Alto Networks latest results, please see the following comment from Ben Barringer, global technology analyst at Quilter Cheviot:
“Palo Alto Networks delivered a solid set of results, even if they didn’t quite clear the high bar investors had set. Revenues grew 15% year-on-year, and the company is guiding for 15% growth ahead, which is still a healthy pace. The business continues to benefit from its scale and breadth across the cybersecurity landscape, which is becoming ever more essential as AI reshapes the threat environment.
“AI is now central to both defence and offence in cybersecurity. Tools like AI-driven attack simulation are powerful for protecting systems but AI can also be used by bad actors to create more sophisticated threats. As a result, demand for trusted cybersecurity is only set to rise, and Palo Alto is in a strong position to capitalise. This is shown clearly by the recent attack on M&S.
“The shift to cloud computing is another tailwind for the company, since cloud infrastructure is a prerequisite for most AI capabilities. While there was a period of uncertainty in April, including concerns around tariffs and wider market volatility, Palo Alto has since returned to strong execution.
“Cybersecurity remains a top priority for CIOs and is one of the last areas likely to see cuts in a constrained IT budget. While overall IT spending may only grow 3–4% this year, cybersecurity is expected to grow by 8-10%. In that context, having exposure to quality operators like Palo Alto makes a lot of sense.”
