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According to a recent research report, the AI cybersecurity market is expected to grow to $102.78 billion by 2032. AI may be beneficial to enterprises, but it is also being used for evasive zero-day attacks that traditional security solutions cannot detect. Palo Alto Networks (NYSE: PANW) is looking to tackle this by securing AI-led attacks across the entire cyber landscape of the organization.

Palo Alto Network’s Financials

Its third-quarter revenue grew 15% to $1.98 billion, ahead of the Street’s estimate of $1.97 billion. Net income was $278.8 million, or $0.79 per share, compared to $107.8 million, or $0.31 per share a year ago. Non GAAP EPS was $1.32 compared with the market’s expectations of $1.25.

By segment, Product revenue increased 0.7% to $391 million and Subscription and Support revenue improved 19.6% to $1.59 billion.

For the fourth quarter, Palo Alto Networks expects revenue of $2.15-$2.17 billion and an EPS of $1.40-$1.42. The market was looking for revenue of $2.16 billion.

For the fiscal year, the company expects revenue of $7.99-$8.01 billion and an EPS of $5.56-$5.58. The market was estimated revenue of $7.98 billion.

Palo Alto Networks’ AI Focus

Palo Alto Networks believes that security breaches will come at an even faster pace due to AI. Today, almost every organization is either experimenting with AI or has plans to deploy some use cases in the future. While AI is improving organizational efficiency, it is also introducing a new set of threats. Palo Alto itself sees an average of 2.3 million new and unique threats every day and blocks an average of 11.3 billion threats inline per day.

To address some of these issues, Palo Alto launched a whole suite of products and partnerships aimed to secure AI usage by design. Precision AI is Palo Alto’s new proprietary innovation that combines machine learning (ML) and deep learning (DL) with the accessibility of generative AI (GenAI). It has integrated Precision AI across its platforms including Strata, Prisma and Cortex to offer new capabilities to address key enterprise use cases.

Counter AI with AI uses AI-powered security measures to counteract the potential impacts or risks associated with the malicious use of AI. Services such as Advanced URL Filtering, Advanced Threat Prevention, and Advanced DNS Security leverage inline AI to prevent sophisticated web-based threats, zero-day threats, evasive command-and-control attacks, and DNS hijacking attacks.

Secure AI by Design addresses AI issues by building a secure AI ecosystem that prioritizes the integrity of AI security frameworks, improves compliance, and minimizes data exposure from the initial stages of development through to deployment.

Prisma Cloud AI Security Posture Management (AI-SPM) secures AI ecosystems by identifying vulnerabilities and prioritizing misconfigurations in models, applications and resources. AI Runtime Security helps build AI-powered apps by securing the entire AI app ecosystem.

Besides adding to product capabilities. Palo Alto Networks expanded its partnerships with IBM and Accenture. Its partnership with IBM will help streamline and transform security operations, stop threats at scale, and accelerate incident remediation for their customers. As part of this expanded partnership, Palo Alto Networks has agreed to acquire IBM’s QRadar SaaS assets, including QRadar intellectual property rights. Palo Alto and IBM will facilitate the migration of QRadar SaaS clients to Palo Alto’s security operations platform that offers advanced AI-powered threat protection supported by 3,000 out-of-the-box detectors.

Its partnership with Accenture will ensure that Palo Alto Networks collaborates closely with Accenture Security as a design partner to develop and customize Palo Alto Networks AI Runtime Security to meet specific client needs, and deliver improved AI-powered protection for business applications.

Palo Alto Networks’ stock is trading at $295.93 with a market capitalization of $95.8 billion. It was trading at a 52-week low of $201.17 in August last year and had climbed to a 52-week high of $380.84 earlier this year.

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