(Reuters) -Palo Alto Networks Inc raised its full-year forecasts for adjusted profit and revenue on Tuesday as clients looking to reduce costs shift their spending to bigger cybersecurity firms with better integrated offerings.
Shares of the Santa Clara, California-based company rose 4% to $197.2 in volatile trading after the bell.
A rise in cyber crime and the growing digital presence of businesses and governments have fed demand for cybersecurity software, helping soften the impact from technology budgets shrinking in the face of high interest rates and inflation.
“Our team again executed well in a market that continues to become more challenging,” CEO Nikesh Arora said in a statement.
Palo Alto has benefited from enterprise customers searching for one-stop shops for their cybersecurity solutions in a bid to reduce the complexity of their operations and save on costs.
The company, which counts Accenture and Salesforce among its clients, now expects 2023 adjusted net income per share of $4.25 to $4.29, compared with its previous range of $3.97 to $4.03.
It increased the lower end of its full-year revenue outlook to between $6.88 billion and $6.91 billion, compared with a prior outlook of $6.85 billion to $6.91 billion.
Palo Alto forecast fourth-quarter revenue between $1.94 billion and $1.97 billion, compared with analysts’ estimates of $1.95 billion, according to Refinitiv data.
(Reporting by Vansh Agarwal in Bengaluru; Editing by Devika Syamnath)
