Palo Alto Networks CEO Nikesh Arora attended VivaTech trade show in Paris. The company beat Wall Street’s Q1 estimates, with revenues of $2.47 billion, up 16% from last year. Net income fell to $334 million, with earnings per share at 93 cents. Palo Alto plans to acquire Chronosphere for $3.35 billion.

The stock fell about 3% after earnings report. Q2 revenue guidance between $2.57 billion and $2.59 billion, in line with estimates. Full-year revenue expected between $10.50 billion and $10.54 billion. Capital expenditures exceeded expectations at $84 million. Palo Alto has been ramping up acquisitions under Arora.

Palo Alto has been integrating AI into its cybersecurity tools to combat sophisticated cyberattacks. The company launched automated AI agents to help protect against threats in October. Palo Alto recently announced plans to acquire Chronosphere for $3.35 billion, following a $25 billion deal for CyberArk in July.

Read more at CNBC: Palo Alto Networks (PANW) Q1 2026 earnings report