Aug 18 (Reuters) - Palo Alto Networks ( PANW ) forecast

fiscal 2026 revenue and profit above Wall Street estimates on

Monday, betting on growing demand for its artificial

intelligence-powered cybersecurity solutions, sending its shares

up nearly 5% in extended trading.

The company has been benefiting from an AI-driven upgrade

cycle as enterprises accelerate their cloud adoption and

modernize security operations amid rising data breach incidents.

A wave of high-profile cyberattacks has hit global companies

including Microsoft ( MSFT ), UnitedHealth Group ( UNH ), Walt

Disney ( DIS ) and Oracle, prompting the need for

robust security solutions.

Palo Alto's new launches such as cloud security platform

'Cortex Cloud' and security platform to protect AI apps 'Prisma

AIRS', together with its planned $25 billion CyberArk

acquisition, deepen its cybersecurity offerings.

The company also announced that founder and Chief Technology

Officer Nir Zuk will be retiring after being with Palo Alto for

over 20 years. Long-time product leader Lee Klarich has been

named as its CTO and board member.

Klarich will also chair the board's security committee in a

bid to bolster the company's AI-driven platform strategy.

Palo Alto competes with CrowdStrike ( CRWD ), Fortinet ( FTNT )

and Zscaler ( ZS ). Its customers include Salesforce ( CRM )

, Dell Technologies ( DELL ) and NetApp ( NTAP ).

The company projected annual revenue between $10.48 billion

and $10.53 billion, above analysts' average estimate of $10.43

billion, according to data compiled by LSEG.

It expects adjusted profit per share of $3.75 to $3.85,

above estimates of $3.67 for the fiscal year.

The company's first-quarter revenue forecast of $2.45

billion to $2.47 billion came in above expectations of $2.43

billion. Its adjusted quarterly earnings per share of 88 cents

to 90 cents was also above estimates of 85 cents.

Palo Alto reported upbeat fourth-quarter results. Its

revenue grew 16% to $2.54 billion from a year ago. It reported

adjusted EPS of 95 cents for the quarter ended July 31, beating

estimates of 88 cents.