Palo Alto Networks: High Demand meets high integration costs
AI agents are creating new security risks at machine speed
Remaining performance obligations rise to $16 billion
Reading Time: 2 minutes
The recent pullback in Palo Alto Networks (PANW) shares is not due to a demand issue, but rather a weaker earnings outlook caused by high integration costs from strategically important acquisitions. I am now specifically watching for stabilization signals. CyberArk for identity security, Chronosphere as an observability platform, and Koi for endpoint security for AI agents are essential components of Next Generation Security (NGS), where the growth in annual recurring revenues (ARR) accelerated from 33% to 56% in the current quarter. Additionally,...
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