Palo Alto Networks just delivered a double surprise that sent shares surging 6% after hours: not only did the cybersecurity giant crush Q4 earnings expectations, but company founder Nir Zuk announced he's stepping down as CTO after nearly two decades building the business. The timing signals confidence in the company's direction despite recent market turbulence around its massive CyberArk acquisition.
Palo Alto Networks just proved that even amid major strategic shifts, execution still matters most. The cybersecurity powerhouse delivered adjusted earnings of 95 cents per share against Wall Street's 88-cent expectation, while revenue hit $2.54 billion versus the $2.5 billion consensus. But the real headline emerged alongside those numbers: founder Nir Zuk is stepping down as chief technology officer after building the company from startup to industry titan since 2005.
The market responded immediately, sending shares up 6% in extended trading as investors digested both the earnings beat and leadership transition. According to CNBC's report, revenue for the fiscal fourth quarter climbed 16% from approximately $2.2 billion last year, though net income dropped to $254 million from $358 million in the prior-year period as the company invested heavily in growth initiatives.
Palo Alto Networks didn't just beat the quarter – it raised the bar for what's ahead. The company issued fiscal first quarter guidance of 88 to 90 cents per share, topping StreetAccount's 85-cent estimate. More importantly, full-year projections now call for $10.48 to $10.53 billion in revenue with adjusted earnings of $3.75 to $3.85 per share, both exceeding Wall Street's expectations.
The timing of Zuk's departure carries particular weight given the company's recent $25 billion acquisition announcement for Israeli identity security provider CyberArk. That deal, unveiled last month, represents the largest acquisition in Palo Alto's history and marks the most ambitious move in CEO Nikesh Arora's acquisition spree since taking over in 2018. The stock initially sold off sharply on that news and remains down about 3% year-to-date.
