Palo Alto Networks (NASDAQ: PANW) FQ2 results weren’t the inflection point the analysts had hoped for, but the uptrend will continue because AI is good for business. To paraphrase CEO Nikesh Arora, AI and advancing digital technologies are good for cybersecurity businesses because with each advancement comes the need for increased and advancing security. The takeaway from the report isn’t that results weren’t dazzling but that the platformization continues to drive growth, margins are improving, and outperformance was posted.
Likewise, the guidance wasn’t mind-blowing but included increased expectations for revenue and earnings that have analysts raising their stock price targets.
