"Palo Alto Networks Stock Plunges on Disappointing Revenue Forecast"

Palo Alto Networks Inc. plunged in late trading after cutting its revenue forecast for the year, citing concerns that customers are reining in tech spending. The company now expects sales of $7.95 billion to $8 billion for the fiscal year, down from its previous projection of up to $8.2 billion. This suggests that customers may be scaling back their spending ambitions, despite the increasing prevalence of online attacks. The stock fell as much as 21% in extended trading, and the news also weighed on shares of other cybersecurity companies. CEO Nikesh Arora attributed the spending fatigue to customers finding that adding incremental products is not necessarily driving better security outcomes, and highlighted the company's focus on profitable growth and potential from artificial intelligence.