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Palo Alto Networks’ (PANW) stock rose nearly 6% in the early premarket trading on Tuesday, after the cybersecurity firm reported better-than-expected quarterly results and issued upbeat guidance.

The company also announced Nir Zuk, its founder, CTO and board member, has retired after more than two decades of association.

The Santa Clara, California-based company’s adjusted earnings per share (EPS) increased to $0.95 in its fiscal 2025 fourth quarter, from $0.75 in the year-ago period, and exceeded the Fiscal.ai-compiled consensus estimate of $0.89.

Revenue climbed 16% year-over-year (YoY) to $2.54 billion versus the $2.50-billion consensus.

On Stocktwits, retail sentiment toward Palo Alto stock turned to ‘extremely bullish’ (85/100) from ‘neutral’ a day ago, and the message volume climbed to ‘extremely high’ levels.

The stock was among the top ten trending equity tickers on the platform.

Commenting on the results, CEO Nikesh Arora said, “We exited fiscal year 2025 with an acceleration in RPO, and surpassed the $10 billion revenue run-rate milestone, positioning ourselves well for sustained growth ahead."

The executive also highlighted the demand for the company’s platforms, which are “designed to work in concert, creating powerful operational synergies that deliver superior, near real-time outcomes and the efficiency our customers need.”

CFO Dipak Golechha said, “Our strong top-line results were complemented by continued operating efficiency and strong free cash flow generation, making us a 'Rule-of-50' company for the fifth consecutive year.”

For the first quarter, the company guided to revenue in the range of $2.45 billion to $2.47 billion, and adjusted EPS in the range of $0.88 to $0.90. Analysts, on average, expect $2.45 billion in revenue and $0.86 in adjusted EPS.

Palo Alto forecasts fiscal 2026 revenue in the range of $10.475 billion to $10.525 billion, compared to the consensus estimate of $10.48 billion. The company targets adjusted EPS of $3.75-$3.85, ahead of the mean analysts’ estimate of $3.7.

The company expects full-year next-generation security annual recurring revenue (ARR) to jump 26%-27% to a range of $7 billion to $7.10 billion.

It announced a deal in late July to buy peer CyberArk for $45 in cash and 2.2005 Palo Alto shares. 

Palo Alto stock is down over 3% this year.

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