tech
February 18, 2026
Palo Alto shares sink 7%, CEO defends cybersecurity's position as AI hits software stocks
Palo Alto has bet big on AI in recent months and launched an aggressive acquisition spree that included buying CyberArk for $25 billion.
TL;DR
- Palo Alto Networks CEO Nikesh Arora addressed concerns about AI impacting software stocks, stating AI is not a threat to cybersecurity.
- The company's stock fell 7% after its fiscal second-quarter results, with third-quarter earnings guidance missing expectations.
- Arora stated that customers are using AI to drive consistency in their security stacks.
- Palo Alto Networks has invested in AI, launching new agentic tools and acquiring companies like CyberArk, Chronosphere, and Koi.
- These investments are a response to market inflections, and the company believes it is entering the next phase of AI adoption.
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