Palo Alto Networks Inc ( PANW ) shares are trading higher Wednesday after the company announced it achieved $1.5 billion in sales on the Google Cloud Marketplace.

What Happened: Palo Alto announced it crossed $1.5 billion in cumulative sales through Alphabet Inc’s Google Cloud Marketplace as of April. The cybersecurity company said the sales milestone highlights its commitment to helping organizations use artificial intelligence to more securely accelerate cloud and AI adoption.

Palo Alto said it was recognized with five 2025 Google Cloud Partner of the Year awards spanning AI technology, AI security, security infrastructure protection, security marketplace solutions and technology marketplace solutions.

"With Google Cloud, we combine their AI/ML capabilities with Palo Alto Networks ( PANW ) industry-leading security platforms to provide a comprehensive suite of AI-driven security offerings," said Kristy Friedrichs, chief partnerships officer at Palo Alto Networks ( PANW ). 

"This deep collaboration helps customers achieve their AI and digital innovation objectives while mitigating associated risks. Surpassing $1.5 billion in sales on Google Cloud Marketplace signifies the demand for innovative security solutions as organizations prioritize cloud-first strategies."

Palo Alto shares popped in after-hours trading Tuesday following the announcement and have continued to move higher on Wednesday. Other cybersecurity stocks are also trading higher, including CrowdStrike Holdings Inc ( CRWD ) , which announced an expanded partnership with Google Cloud. Shares of Zscaler, Fortinet and SentinelOne were also rising at last check.

In a new note to clients on Monday, Wedbush analyst Dan Ives suggested that cybersecurity names could outperform the broader technology sector under current market conditions. The analyst indicated that cybersecurity stocks stand to benefit from a rotation from semiconductors to software as investors “hunker down during this Category 5 storm.”

PANW Price Action: Palo Alto shares were up 2.29% at $156.02 at the time of publication Wednesday, according to Benzinga Pro.

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