By Dean Seal
The founder of Palo Alto Networks is retiring from the C-suite as the cybersecurity company gears up to deliver another year of projected revenue and profit gains.
The Santa Clara, Calif., company said Monday that Nir Zuk has left the board and retired as chief technology officer.
"It is impossible to overstate his impact," Chief Executive Nikesh Arora said on a call with analysts. "He didn't just start a company, he started a revolution with the next generation firewall, forever changing the security landscape."
Zuk said he founded Palo Alto Networks about 20 years ago to challenge a stagnant cybersecurity industry, and that the company's recent deal to acquire CyberArk is a testament to that ambition.
"This has been an incredible journey, and I leave with deep satisfaction, knowing the company we built together is stronger than ever," Zuk said in a statement.
Succeeding Zuk as CTO is Chief Product Officer Lee Klarich, who has also been added to the board. Klarich joined the company in 2006, a year after Zuk founded it, and became chief product officer in 2017.
Palo Alto Networks announced Zuk's departure on the same day it laid out guidance for fiscal 2026, which started this month. It expects to post annual revenue of about $10.5 billion, give or take $25 million. That would be up from $9.22 billion last fiscal year, and above current analyst estimates for $10.42 billion, according to FactSet.
The company is forecasting adjusted earnings of $3.75 to $3.85 a share. Analysts polled by FactSet expect $3.67 a share.
Chief Financial Officer Dipak Golechha said the company is carrying strong momentum from the prior fiscal year into the new one.
For the fiscal fourth quarter that ended July 31, it posted a profit of $253.8 million, or 36 cents a share, down from $357.7 million, or 51 cents a share, in the year-earlier quarter.
Stripping out acquisition-related costs, litigation expenses and other one-time items, adjusted earnings were 95 cents a share. Analysts had been expecting 89 cents a share, according to FactSet.
Revenue climbed 16% to $2.54 billion, ahead of analyst estimates for $2.5 billion, driven by growth in its subscription and support business along with higher product sales.
Shares rose 4.4% to $184.90 after hours.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
August 18, 2025 17:48 ET (21:48 GMT)
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