Palo Alto Networks topped fiscal fourth-quarter estimates as customers spend more on defenses against AI-enabled cyber threats, according to CNBC. The cybersecurity company’s revenue rose 34% from $2.54 billion a year earlier, CNBC reported, citing company figures. The bottom line moved the other way. Palo Alto reported a net loss of $282 million, or 35 cents per share, compared with net income of $254 million, or 36 cents per share, in the year-ago period, according to CNBC. Investors did not reward the print immediately. CNBC reported that Palo Alto shares fell about 2% in extended trading after dropping 5% during the regular session. The move came even as the stock had nearly doubled this year, according to CNBC, amid investor interest in AI-linked demand for newer security detection and response tools. CEO Nikesh Arora told CNBC that the acceleration of AI attacks is pushing customers to build faster and stronger cyber defenses. He framed the demand shift as durable rather than a one-quarter event, saying it supports the company’s longer-term growth outlook. CNBC also reported that Palo Alto has held more than 2,000 customer briefings following Anthropic’s Mythos launch, up from roughly 1,200 disclosed last quarter. The outlet tied the increased customer engagement to rising concern about agentic cyberattacks and cited the OpenAI-Hugging Face hack as evidence that agents can increasingly plan and orchestrate attacks autonomously. The company is also continuing to use acquisitions to deepen its AI security portfolio. CNBC reported that Palo Alto plans to buy agentic AI startup Console. Terms for that planned deal were not included in the provided report. That would add to a broader dealmaking push under Arora. CNBC said Palo Alto’s recent activity includes a $25 billion deal for identity security company CyberArk and the $3.4 billion acquisition of Chronosphere. Arora described the cyber startup ecosystem to CNBC as a broad testing ground for new approaches, and said Palo Alto can acquire from that pool when its internal work is not enough. Guidance topped cited analyst expectations. For the first quarter, Palo Alto forecast revenue of $3.30 billion to $3.31 billion, above an analyst estimate of $3.22 billion, according to CNBC. For the full year, the company projected revenue of $14.10 billion to $14.20 billion and adjusted earnings per share of $4.16 to $4.19, compared with analyst forecasts cited by CNBC of $13.79 billion in revenue and $4.11 in adjusted EPS. Who benefits: Palo Alto benefits if customers continue increasing spending on AI-related cyber defenses. Cybersecurity startups working on agentic AI security may also gain strategic value if large platforms keep using acquisitions to expand coverage. Who's exposed: Shareholders are exposed to market reaction around a quarter that included a reported net loss and guidance above analyst estimates. Customers are exposed to the security risks CNBC described around agentic attacks, which are pushing demand for faster defenses.