Perhaps you woke up yesterday morning and found that the website you were trying to browse wasn’t working. Or maybe you went to Spotify and that was down or YouTube, or X, or ChatGPT, or even the website Downdetector, which tracks internet outages. All those went down, too. You see, they all rely on Cloudflare, which offers internet infrastructure services. It discovered a bug in one of the services that it provides. And if you’re thinking, didn’t this just happen? Yeah, it did. Last month, separate outages at Microsoft’s cloud service and at Amazon Web Services also led to widespread disruptions.
All of these recent incidents remind us of how much the modern internet depends on a small handful of tech companies. When this sort of thing happens, we often reach out to cybersecurity expert Betsy Cooper at the Aspen Institute. Welcome.
BETSY COOPER: So great to be here.
CHANG: So great to have you here physically. OK, so the CEO of Cloudflare explained that all of this was caused by some internal issue with one of its cybersecurity services, not a cyberattack itself. Let me just ask you, can one bug at one company really lead to global IT consequences like we see?
COOPER: It absolutely can. And I was trying to use ChatGPT when this all went down…
CHANG: (Laughter).
COOPER: …So that’s how I found out about it. I want you to just imagine you’re working on a Google Doc, and it’s a really, really big Google Doc. You keep adding more information to it. All of a sudden it’s no longer functioning, and your computer requires you to restart. That’s basically what happened at Cloudflare’s internal systems.
CHANG: Wow. That’s scary. I mean, how did so much power end up concentrated in so few companies?
COOPER: Well, the companies have a lot of market power, not just on these topics but on others. You mentioned Amazon. Certainly, I use Amazon a lot for shopping, not just for website browsing.
CHANG: Same.
COOPER: Microsoft as well.
CHANG: Yeah.
COOPER: I mean, we use that for our email platforms. So when these companies have the ability to sort of shift resources and have finances that enable them to support these very expensive cloud infrastructure pieces, they’re able to come along and get more market share than a smaller company that might not be able to have millions of dollars from other lines of business to support that work.
CHANG: But do you think that’s a good thing? I ask because, like, this Cloudflare outage was only, what, four hours? And then it was resolved. But even a short disruption can cripple a business, right? In fact, the CEO of Cloudflare said, I apologize for the pain we caused the internet today. Is there any movement, Betsy, to get the government more involved here, like, to improve the reliability of these private internet companies?
COOPER: So I haven’t heard a ton about movement in that direction. And if anything, this week, we’ve heard about movement in the opposite direction. So consideration of limiting what states can do in terms of regulating AI will potentially come up in the National Defense Authorization. You asked if this was a good thing.
CHANG: Yeah.
COOPER: And I think it’s good and bad. So for small businesses that don’t have a lot of tech sophistication, it’s actually good that you have the security infrastructure of an Amazon or a Google or a Cloudflare supporting your business because if you tried to build your own tech stack to do this work, it probably would be even more problematic.
CHANG: OK.
COOPER: Where I think it gets really hard is for the bigger businesses, you know, the Downdetectors of the world, ChatGPT. For those businesses, you really need to have a backup plan. You need to have a way to move your systems from one place to another to help recover quickly if something like this happens.
CHANG: Sure. Well, then what is the answer to making these things happen less often?
COOPER: So first, scenario-planning. You need to understand your systems and prepare for this eventuality. Like, I would love to have heard Cloudflare talk about how they had prepared for something like this and why they were able to limit the disruption because they’d actually sort of ran a scenario in which they lived that out and figured out who was going to call who and who was on emergency watch to try to identify the file. So if they’re not doing that, they definitely need to be doing that.
And then second, we all as a society need to prepare that the internet is not going to be perfect, just like we prepare that our utilities aren’t going to be perfect. And so we need the equivalent of digital backup generators. We need to be in a position to plan for, there’s going to be an eventual outage. How can you get your most important services moving even if that happens?
CHANG: Betsy Cooper is founding director of the Aspen Policy Academy. Thank you so much for coming in today.
COOPER: So delighted to be here. Thanks again.
CHANG: And a note, both Amazon and Microsoft are financial supporters of NPR.
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LOUISVILLE, KY — Brown‑Forman Corporation (NYSE: BFA, BFB) announced today that its Board of Directors approved an increase of 2% to the quarterly cash dividend from $0.2265 per share to $0.2310 per share on its Class A and Class B Common Stock. As a result, the indicated annual cash dividend will rise from $0.9060 per share to $0.9240 per share. The dividend is payable on January 2, 2026, to stockholders of record on December 5, 2025.
Brown‑Forman’s President and Chief Executive Officer Lawson Whiting said, “This marks the 42nd consecutive year Brown‑Forman has increased its dividend, a testament to the strength of our balance sheet, the confidence we have in our ability to generate strong cash flow, and to our commitment to returning cash to shareholders.”
Brown‑Forman, a member of the prestigious S&P 500 Dividend Aristocrats index, has paid regular quarterly cash dividends for 82 years and has increased the cash dividend for 42 consecutive years.
Brown‑Forman Corporation is a global leader in the spirits industry, responsibly building exceptional beverage alcohol brands for more than 155 years. Headquartered in Louisville, Kentucky, we are guided by our founding promise, “Nothing Better in the Market.” Our premium portfolio includes Jack Daniel’s Family of Brands, Woodford Reserve, Old Forester, New Mix, el Jimador, Herradura, The Glendronach, Glenglassaugh, Benriach, Diplomático Rum, Gin Mare, Fords Gin, Chambord, and Slane. With approximately 5,000 employees worldwide, we proudly share our passion for fine-quality spirits in more than 170 countries. Learn more at brown-forman.com and stay connected with us on LinkedIn, Instagram, and X.
Contacts:
Elizabeth Conway, Director, External Communications Elizabeth_Conway@b-f.com
Sue Perram, Vice President, Director, Investor Relations Sue_Perram@b-f.com
Important Information on Forward-Looking Statements:
This press release contains statements that are “forward-looking statements” as defined under U.S. federal securities laws. These forward-looking statements reflect management’s expectations or projections regarding future events and speak only as of the date we make them. Except as required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. By their nature, forward-looking statements involve risks, uncertainties, and other factors (many beyond our control) that could cause our actual results to differ materially from our historical experience or from our current expectations or projections.
For further information on factors that could cause our actual results to differ materially from our historical experience or from our current expectations or projections, please refer to our public filings, including the “Risk Factors” section of our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.
NDA based on data from global ARROS-1 Phase 1/2 clinical trial
FDA assigns PDUFA target action date of September 18, 2026
CAMBRIDGE, Mass., Nov. 19, 2025 /PRNewswire/ — Nuvalent, Inc. (Nasdaq: NUVL), a clinical-stage biopharmaceutical company focused on creating precisely targeted therapies for clinically proven kinase targets in cancer, today announced the U.S. Food and Drug Administration (FDA) has accepted for filing its New Drug Application (NDA) for zidesamtinib, an investigational ROS1-selective inhibitor, for the treatment of adult patients with locally advanced or metastatic ROS1-positive non-small cell lung cancer (NSCLC) who received at least 1 prior ROS1 tyrosine kinase inhibitor (TKI). The application has been assigned a Prescription Drug User Fee Act (PDUFA) target action date of September 18, 2026.
Nuvalent’s NDA submission is based on results for TKI pre-treated patients with advanced ROS1-positive NSCLC enrolled in the global registrational ARROS-1 Phase 1/2 clinical trial. These data were reported along with preliminary data from the ongoing Phase 2 TKI-naïve cohort of ARROS-1, and presented as part of the Presidential Symposium at the IASLC 2025 World Conference on Lung Cancer in September 2025.
About Zidesamtinib and the ARROS-1 Phase 1/2 Clinical Trial Zidesamtinib is an investigational, novel brain-penetrant ROS1-selective inhibitor created with the aim to overcome limitations observed with currently available ROS1 inhibitors. Zidesamtinib is designed to remain active in tumors that have developed resistance to currently available ROS1 inhibitors, including tumors with treatment-emergent ROS1 mutations such as G2032R. In addition, zidesamtinib is designed for central nervous system (CNS) penetrance to improve treatment options for patients with brain metastases, and to avoid inhibition of the structurally related tropomyosin receptor kinase (TRK) family. Together, these characteristics have the potential to avoid TRK-related CNS adverse events seen with dual TRK/ROS1 inhibitors and to drive deep, durable responses for patients across all lines of therapy. Zidesamtinib has received breakthrough therapy designation for the treatment of patients with ROS1-positive metastatic non-small cell lung cancer (NSCLC) who have been previously treated with 2 or more ROS1 tyrosine kinase inhibitors and orphan drug designation for ROS1-positive NSCLC.
Zidesamtinib is currently being investigated in the ARROS-1 trial (NCT05118789), a first-in-human Phase 1/2 clinical trial for patients with advanced ROS1-positive NSCLC and other solid tumors. The completed Phase 1 portion enrolled ROS1-positive NSCLC patients who previously received at least one ROS1 TKI, or patients with other ROS1-positive solid tumors who had been previously treated. The Phase 1 portion of the trial was designed to evaluate the overall safety and tolerability of zidesamtinib, with additional objectives including determination of the recommended Phase 2 dose (RP2D), characterization of the pharmacokinetic profile, and evaluation of preliminary anti-tumor activity. The ongoing global, single arm, open label Phase 2 portion is designed with registrational intent for TKI-naïve and TKI pre-treated patients with advanced ROS1-positive NSCLC.
About Nuvalent
Nuvalent, Inc. (Nasdaq: NUVL) is a clinical-stage biopharmaceutical company focused on creating precisely targeted therapies for patients with cancer, designed to overcome the limitations of existing therapies for clinically proven kinase targets. Leveraging deep expertise in chemistry and structure-based drug design, we develop innovative small molecules that have the potential to overcome resistance, minimize adverse events, address brain metastases, and drive more durable responses. Nuvalent is advancing a robust pipeline with investigational candidates for ROS1-positive, ALK-positive, and HER2-altered non-small cell lung cancer, and multiple discovery-stage research programs.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements regarding Nuvalent’s strategy, business plans, and focus; its expectations regarding the review and potential regulatory approval of zidesamtinib and the timing thereof; the preclinical and clinical development program for zidesamtinib; the potential benefits and effects of Nuvalent’s product development candidates; the potential of Nuvalent’s pipeline programs, including zidesamtinib; and risks and uncertainties associated with drug development. The words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “aim,” “goal,” “intend,” “believe,” “expect,” “estimate,” “seek,” “predict,” “future,” “project,” “potential,” “continue,” “target” or the negative of these terms and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Drug development and commercialization involve a high degree of risk, and only a small number of research and development programs result in commercialization of a product. You should not place undue reliance on these statements or the scientific data presented.
Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties, and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation: risks that Nuvalent may not fully enroll its clinical trials or that enrollment will take longer than expected; unexpected concerns that may arise from additional data, analysis, or results obtained during preclinical studies or clinical trials; the risk that results of earlier clinical trials may not be predictive of the results of later-stage clinical trials; the risk that data from our clinical trials may not be sufficient to support registration and that Nuvalent may be required to conduct one or more additional studies or trials prior to seeking registration of our product candidates; the occurrence of adverse safety events; risks that the FDA may not approve our potential products on the timelines we expect, or at all; risks of unexpected costs, delays, or other unexpected hurdles; risks that Nuvalent may not be able to nominate drug candidates from its discovery programs; the direct or indirect impact of public health emergencies or global geopolitical circumstances on the timing and anticipated timing and results of Nuvalent’s clinical trials, strategy, and future operations; the timing and outcome of Nuvalent’s planned and expected interactions with regulatory authorities; and risks related to obtaining, maintaining, and protecting Nuvalent’s intellectual property. These and other risks and uncertainties are described in greater detail in the section entitled “Risk Factors” in Nuvalent’s Annual Report on Form 10-Q for the quarter ended September 30, 2025, as well as any prior and subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent Nuvalent’s views only as of today and should not be relied upon as representing its views as of any subsequent date. Nuvalent explicitly disclaims any obligation to update any forward-looking statements.
Combination of Chronosphere and Palo Alto Networks’ Cortex AgentiX platform will deliver real-time, agentic remediation for the world’s leading AI-native companies
SANTA CLARA, Calif., Nov. 19, 2025 /PRNewswire/ — Furthering its mission to address the critical data demands of the AI era, Palo Alto Networks® (NASDAQ: PANW), the global cybersecurity leader, today announced it has entered into a definitive agreement to acquire Chronosphere, a next-generation observability platform built to scale for the AI era. This acquisition will strengthen Palo Alto Networks’ ability to help organizations navigate a world where modern applications and AI workloads demand a unified data and security foundation.
The growth of these applications and workloads requires constant uptime and resilience, making real-time, always-on observability mission-critical for success. Chronosphere was built precisely for these current needs: a next-generation architecture designed to scale for the AI era and handle vast cloud data volumes with cost-efficiency and reliability at the forefront. It has already proven its reliability and cost-efficiency in production with some of the category-defining companies leading the AI revolution, including two of the premier LLMs.
Nikesh Arora, Chairman and CEO, Palo Alto Networks: “The foundational requirement for every modern AI data center is constant uptime and resilience, which demands real-time, always-on observability delivered at the right cost. Chronosphere was built to scale for the data demands of the AI era from day one, which is why it is chosen by leading AI-native and born-in-the-cloud organizations. And once we leverage AgentiX with Chronosphere, we will take observability from simple dashboards to real-time, agentic remediation. We are excited to not just enter this space, but to disrupt it.”
Combining Chronosphere’s purpose-built, optimized architecture that can handle some of the largest and most complex digital environments with Palo Alto Networks’ AgentiX™ will transform the value proposition of observability from passive monitoring, to offering a ground-breaking autonomous remediation platform. The new solution will deploy AI agents on the massive amounts of data monitored by Chronosphere’s platform to not only detect performance issues, but also to autonomously investigate the root cause, and close the loop with agentic remediation. Customers will be able to achieve deeper visibility across both security and observability data at petabyte scale, while simultaneously realizing significant cost efficiencies due to Chronosphere’s optimized data ingestion architecture.
Martin Mao, Co-founder and CEO, Chronosphere: “We founded Chronosphere to provide scalable resiliency for the world’s largest digital organizations. Palo Alto Networks is the perfect strategic partner for our customers, partners, and employees. It allows us to combine our disruptive observability platform with the world’s best security company, accelerating our momentum in solving the most complex data and resiliency challenges. Together, we look forward to continuing to partner with industry-leading cloud and AI-native customers across the world on their mission-critical observability and security needs.”
Chronosphere is recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for Observability Platforms, and will also bring innovative telemetry pipeline capabilities to Palo Alto Networks’ industry-leading platforms to drive powerful data transformation, optimization, and routing that will enable customers to make massive data ingestion economically viable at scale.
Under the terms of the agreement, Palo Alto Networks will acquire Chronosphere for a total consideration of $3.35 billion, to be paid in cash and replacement equity awards, subject to adjustments. Chronosphere reports generating annual recurring revenue (“ARR”) of over $160 million as of the end of September 2025, growing ARR triple-digits year-over-year. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in Palo Alto Networks’ second half of fiscal 2026.
Investor Call Details Palo Alto Networks will provide further details regarding the acquisition on its Q1 FY2026 earnings call, scheduled for November 19, 2025 at 1:30pm PT. A live video webcast of the call will be accessible from the Investors section of the Palo Alto Networks website at investors.paloaltonetworks.com
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About Palo Alto Networks As the global AI and cybersecurity leader, Palo Alto Networks (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by more than 70,000 organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, security operations and AI, enhanced by the expertise and threat intelligence of Unit 42. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Explore more at www.paloaltonetworks.com.
Palo Alto Networks, Cortex, Cortex XSIAM and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States or in jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. Any unreleased services or features (and any services or features not generally available to customers) referenced in this or other press releases or public statements are not currently available (or are not yet generally available to customers) and may not be delivered when expected or at all. Customers who purchase Palo Alto Networks applications should make their purchase decisions based on services and features currently generally available.
Forward-Looking Statements This press release contains forward-looking statements that involve risks, uncertainties, and assumptions, including, but not limited to, statements regarding the anticipated benefits and impact of the proposed acquisition of Chronosphere on Palo Alto Networks, Chronosphere and their customers. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including, but not limited to: the effect of the announcement of the proposed acquisition on the parties’ commercial relationships and workforce; the ability to satisfy the conditions to the closing of the acquisition, including the receipt of required regulatory approvals; the ability to consummate the proposed acquisition on a timely basis or at all; significant and/or unanticipated difficulties, liabilities or expenditures relating to proposed transaction, risks related to disruption of management time from ongoing business operations due to the proposed acquisition and other contemplated acquisitions, including our pending transaction with CyberArk; our ability to effectively operate Chronosphere’s operations and business following the closing, integrate Chronosphere’s business and products into our products following the closing, and realize the anticipated synergies in the transaction in a timely manner or at all; changes in the fair value of our contingent consideration liability associated with acquisitions; developments and changes in general market, political, economic and business conditions; failure of our platformization product offerings; risks associated with managing our growth; risks associated with the new product, subscription and support offerings in the observability and/or cybersecurity space, including the cost model related to subscriptions in the observability space; shifts in priorities or delays in the development or release of new product or subscription or other offerings or the failure to timely develop and achieve market acceptance of new products and subscriptions, as well as existing products, subscriptions and support offerings; failure of our product offerings or business strategies in general; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; our customers’ purchasing decisions and the length of sales cycles; our ability to attract and retain new customers; developments and changes in general market, political, economic, and business conditions; our competition; our ability to acquire and integrate other companies, products, or technologies in a successful manner; our debt repayment obligations; and our share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of our common stock.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K filed with the SEC on August 29, 2025, which is available on our website at investors.paloaltonetworks.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Fiscal first quarter revenue grew 16% year over year to $2.5 billion.
Next-Generation Security ARR grew 29% year over year to $5.9 billion.
Remaining performance obligation grew 24% year over year to $15.5 billion.
SANTA CLARA, Calif., Nov. 19, 2025 /PRNewswire/ — Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal first quarter 2026, ended October 31, 2025.
Total revenue for the fiscal first quarter 2026 grew 16% year over year to $2.5 billion, compared with total revenue of $2.1 billion for the fiscal first quarter 2025. GAAP net income for the fiscal first quarter 2026 was $334 million, or $0.47 per diluted share, compared with GAAP net income of $351 million, or $0.49 per diluted share, for the fiscal first quarter 2025.
Non-GAAP net income for the fiscal first quarter 2026 was $662 million, or $0.93 per diluted share, compared with non-GAAP net income of $545 million, or $0.78 per diluted share, for the fiscal first quarter 2025. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
“Our strong start to the fiscal year was marked by excellent results across all metrics, and significant platformization wins,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “Our robust innovation engine, paired with the strategic acquisitions of CyberArk and Chronosphere, positions us as the data and security partner of choice in the AI era.”
“We continued to execute with excellence to start the year as shown by our strong top-line growth and operating efficiency,” said Dipak Golechha, chief financial officer of Palo Alto Networks. “This sustained profitable growth was reflected by another quarter of 30% plus operating margin and reinforces our confidence in achieving 40% plus adjusted free cash flow margin in FY’28.”
Today, Palo Alto Networks announced its intent to acquire Chronosphere, a next-generation observability platform for the AI data center era. More information can be found here.
Palo Alto Networks also announced the appointment of Mark Goodburn to the company’s board of directors. The company also announced the retirement of Mary Pat McCarthy, one of its longest-serving board members, effective January 23, 2026. More information can be found here.
Financial Outlook
Palo Alto Networks provides guidance based on current market conditions and expectations.
For the fiscal second quarter 2026, we expect:
Next-Generation Security ARR of $6.11 billion to $6.14 billion, representing year-over-year growth of 28%.
Remaining performance obligation of $15.75 billion to $15.85 billion, representing year-over-year growth of between 21% and 22%.
Total revenue in the range of $2.57 billion to $2.59 billion, representing year-over-year growth of between 14% and 15%.
Diluted non-GAAP net income per share in the range of $0.93 to $0.95, using 711 million to 715 million shares outstanding.
For the fiscal year 2026, we expect:
Next-Generation Security ARR of $7.00 billion to $7.10 billion, representing year-over-year growth of between 26% and 27%.
Remaining performance obligation of $18.6 billion to $18.7 billion, representing year-over-year growth of between 17% and 18%.
Total revenue in the range of $10.50 billion to $10.54 billion, representing year-over-year growth of 14%.
Non-GAAP operating margin in the range of 29.5% to 30.0%.
Diluted non-GAAP net income per share in the range of $3.80 to $3.90, using 710 million to 716 million shares outstanding.
Adjusted free cash flow margin in the range of 38% to 39%.
Guidance for non-GAAP financial measures excludes share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, including change in fair value of contingent consideration liability, amortization expense of acquired intangible assets, litigation-related charges, non-cash charges related to convertible notes, and income tax and other tax adjustments related to our long-term non-GAAP effective tax rate, along with certain non-recurring expenses and certain non-recurring cash flows. We have not reconciled non-GAAP operating margin guidance to GAAP operating margin, diluted non-GAAP net income per share guidance to GAAP net income per diluted share or adjusted free cash flow margin guidance to GAAP net cash from operating activities because we do not provide guidance on GAAP operating margin, GAAP net income or net cash from operating activities and would not be able to present the various reconciling cash and non-cash items between GAAP and non-GAAP financial measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted, including share-based compensation expense, without unreasonable effort. The actual amounts of such reconciling items will have a significant impact on the company’s GAAP net income per diluted share and GAAP net cash from operating activities.
Earnings Call Information
Palo Alto Networks will host a video webcast for analysts and investors to discuss the company’s fiscal first quarter 2026 results as well as the outlook for its fiscal second quarter and fiscal year 2026 today at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Open to the public, investors may access the webcast, supplemental financial information and earnings slides from the “Investors” section of the company’s website at investors.paloaltonetworks.com. A replay will be available three hours after the conclusion of the webcast and archived for one year.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties, and assumptions including statements regarding our platformization strategy and financial outlook for the fiscal second quarter 2026 and fiscal year 2026. There are a significant number of factors that could cause actual results to differ materially from forward-looking statements made or implied in this press release, including: developments and changes in general market, political, economic, and business conditions; failure of our platformization product offerings; failure to achieve the expected benefits of our strategic partnerships and acquisitions; changes in the fair value of our contingent consideration liability associated with acquisitions; risks associated with managing our growth; risks associated with new product, subscription and support offerings, including our product offerings that leverage AI; shifts in priorities or delays in the development or release of new product or subscription or other offerings, or the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products, subscriptions and support offerings; failure of our business strategies; rapidly evolving technological developments in the market for security products, subscriptions and support offerings; defects, errors, or vulnerabilities in our products, subscriptions or support offerings; our customers’ purchasing decisions and the length of sales cycles; our competition; our ability to attract and retain new customers; our ability to acquire and integrate other companies, products, or technologies in a successful manner; our debt repayment obligations; and our share repurchase program, which may not be fully consummated or enhance shareholder value, and any share repurchases which could affect the price of our common stock.
Additional risks and uncertainties on these and other factors that could affect our financial results and the forward-looking statements we make in this press release are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on August 29, 2025, which is available on our website at investors.paloaltonetworks.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other documents that we file with or furnish to the SEC from time to time. All forward-looking statements in this press release are based on our beliefs and information available to management as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
Non-GAAP Financial Measures and Other Key Metrics
Palo Alto Networks has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). The company uses these non-GAAP financial measures and other key metrics internally in analyzing its financial results and believes that the use of these non-GAAP financial measures and key metrics are helpful to investors as an additional tool to evaluate ongoing operating results and trends, and in comparing the company’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures or key metrics.
The presentation of these non-GAAP financial measures and key metrics are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with the company’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of the company’s historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Non-GAAP operating margin. Palo Alto Networks defines non-GAAP operating margin as non-GAAP operating income divided by total revenue. The company defines non-GAAP operating income as operating income plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, including change in fair value of contingent consideration liability, amortization expense of acquired intangible assets, and litigation-related charges. The company believes that non-GAAP operating margin provides management and investors with greater visibility into the underlying performance of the company’s core business operating results.
Non-GAAP net income and net income per share, diluted. Palo Alto Networks defines non-GAAP net income as net income plus share-based compensation-related charges, including share-based payroll tax expense, acquisition-related costs, including change in fair value of contingent consideration liability, amortization expense of acquired intangible assets, litigation-related charges, and non-cash charges related to convertible notes. The company also excludes from non-GAAP net income tax adjustments related to our long-term non-GAAP effective tax rate in order to provide a complete picture of the company’s recurring core business operating results. The company defines non-GAAP net income per share, diluted, as non-GAAP net income divided by the weighted-average diluted shares outstanding, which includes the potentially dilutive effect of the company’s employee equity incentive plan awards and the company’s convertible senior notes and related warrants, after giving effect to the anti-dilutive impact of the company’s note hedge agreements, which reduced the potential economic dilution that otherwise would have occurred in connection with the conversion and settlement of the company’s convertible senior notes. Under GAAP, the anti-dilutive impact of the note hedge is not reflected in diluted shares outstanding. The company considers these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that it uses non-GAAP operating margin.
Next-Generation Security ARR. Palo Alto Networks defines Next-Generation Security ARR as the annualized allocated revenue of all active contracts as of the final day of the reporting period related to all product, subscription and support offerings, excluding revenue from hardware products, and legacy attached subscriptions, support offerings and professional services. The company considers Next-Generation Security ARR to be a useful operating metric for management and investors to assess the performance of the company because Next-Generation Security is where the company has focused its innovation and the company expects its overall revenue to be disproportionately driven by this Next-Generation Security portfolio. Because Next-Generation Security ARR does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.
Investors are cautioned that there are a number of limitations associated with the use of non-GAAP financial measures and key metrics as analytical tools. Many of the adjustments to the company’s GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in the company’s financial results for the foreseeable future, such as share-based compensation, which is an important part of Palo Alto Networks employees’ compensation and impacts their performance. Furthermore, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and the components that Palo Alto Networks excludes in its calculation of non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP results of operations. Palo Alto Networks compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. In the future, the company may also exclude non-recurring expenses and other expenses that do not reflect the company’s core business operating results.
About Palo Alto Networks
As the global AI and cybersecurity leader, Palo Alto Networks® (NASDAQ: PANW) is dedicated to protecting our digital way of life via continuous innovation. Trusted by more than 70,000 organizations worldwide, we provide comprehensive AI-powered security solutions across network, cloud, and security operations, enhanced by the expertise and threat intelligence of Unit 42®. Our focus on platformization allows enterprises to streamline security at scale, ensuring protection fuels innovation. Explore more at www.paloaltonetworks.com.
Palo Alto Networks and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States or in certain jurisdictions throughout the world. All other trademarks, trade names, or service marks used or mentioned herein belong to their respective owners. Any unreleased services or features (and any services or features not generally available to customers) referenced in this or other press releases or public statements are not currently available (or are not yet generally available to customers) and may not be delivered when expected or at all. Customers who purchase Palo Alto Networks applications should make their purchase decisions based on services and features currently generally available.
Palo Alto Networks, Inc.
Preliminary Condensed Consolidated Statements of Operations
(In millions, except per share data)
(Unaudited)
Three Months Ended
October 31,
2025
2024
Revenue:
Product
$ 434
$ 354
Subscription and support
2,040
1,785
Total revenue
2,474
2,139
Cost of revenue:
Product
89
75
Subscription and support
549
479
Total cost of revenue
638
554
Total gross profit
1,836
1,585
Operating expenses:
Research and development
528
481
Sales and marketing
820
720
General and administrative
179
98
Total operating expenses
1,527
1,299
Operating income
309
286
Interest expense
—
(1)
Other income, net
103
83
Income before income taxes
412
368
Provision for income taxes
78
17
Net income
$ 334
$ 351
Net income per share, basic
$ 0.49
$ 0.54
Net income per share, diluted
$ 0.47
$ 0.49
Weighted-average shares used to compute net income per share, basic
679
654
Weighted-average shares used to compute net income per share, diluted
709
709
Palo Alto Networks, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In millions, except per share amounts)
(Unaudited)
Three Months Ended
October 31,
2025
2024
GAAP operating income
$ 309
$ 286
Share-based compensation-related charges
387
315
Acquisition-related costs(1)
5
15
Amortization expense of acquired intangible assets
39
41
Litigation-related charges(2)
6
(41)
Non-GAAP operating income
$ 746
$ 616
Non-GAAP operating margin
30.2 %
28.8 %
GAAP net income
$ 334
$ 351
Share-based compensation-related charges
387
315
Acquisition-related costs(1)
5
15
Amortization expense of acquired intangible assets
39
41
Litigation-related charges(2)
6
(41)
Income tax and other tax adjustments(3)
(109)
(136)
Non-GAAP net income
$ 662
$ 545
GAAP net income per share, diluted
$ 0.47
$ 0.49
Share-based compensation-related charges
0.53
0.46
Acquisition-related costs(1)
0.01
0.02
Amortization expense of acquired intangible assets
0.06
0.06
Litigation-related charges(2)
0.01
(0.06)
Income tax and other tax adjustments(3)
(0.15)
(0.19)
Non-GAAP net income per share, diluted
$ 0.93
$ 0.78
GAAP weighted-average shares used to compute net income per share, diluted
709
709
Weighted-average anti-dilutive impact of note hedge agreements
—
(12)
Non-GAAP weighted-average shares used to compute net income per share, diluted
709
697
(1)
Consists of acquisition transaction costs, share-based compensation related to the cash settlement of certain equity awards, change in fair value of contingent consideration liability, and costs to terminate certain employment, operating lease, and other contracts of the acquired companies.
(2)
Consists of the amortization of intellectual property licenses and covenant not to sue, and a legal contingency charge (credit).
(3)
Consists of income tax adjustments related to our long-term non-GAAP effective tax rate.
Palo Alto Networks, Inc.
Preliminary Condensed Consolidated Balance Sheets
(In millions)
October 31, 2025
July 31, 2025
(unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 3,066
$ 2,269
Short-term investments
1,144
635
Accounts receivable, net
1,343
2,965
Short-term financing receivables, net
737
715
Short-term deferred contract costs
415
419
Prepaid expenses and other current assets
605
520
Total current assets
7,310
7,523
Property and equipment, net
394
387
Operating lease right-of-use assets
353
347
Long-term investments
5,982
5,555
Long-term financing receivables, net
855
1,002
Long-term deferred contract costs
546
586
Goodwill
4,567
4,567
Intangible assets, net
723
763
Deferred tax assets
2,416
2,424
Other assets
390
422
Total assets
$ 23,536
$ 23,576
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 223
$ 232
Accrued compensation
398
608
Accrued and other liabilities
665
846
Deferred revenue
6,132
6,302
Total current liabilities
7,418
7,988
Long-term deferred revenue
6,098
6,450
Deferred tax liabilities
96
89
Long-term operating lease liabilities
346
338
Other long-term liabilities
913
887
Total liabilities
14,871
15,752
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
5,780
5,292
Accumulated other comprehensive income
67
48
Retained earnings
2,818
2,484
Total stockholders’ equity
8,665
7,824
Total liabilities and stockholders’ equity
$ 23,536
$ 23,576
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SOURCE Palo Alto Networks, Inc.
Media Contact: Nicole Hockin, VP, Global Communications, Palo Alto Networks, press@paloaltonetworks.com; Investor Relations Contact: Ryan Fenwick, Director, Investor Relations, Palo Alto Networks, ir@paloaltonetworks.com
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Ernest Opoku knew he wanted to become a scientist when he was a little boy. But his school in Dadease, a small town in Ghana, offered no elective science courses — so Opoku created one for himself.
Even though they had neither a dedicated science classroom nor a lab, Opoku convinced his principal to bring in someone to teach him and five other friends he had convinced to join him. With just a chalkboard and some imagination, they learned about chemical interactions through the formulas and diagrams they drew together.
“I grew up in a town where it was difficult to find a scientist,” he says.
Today, Opoku has become one himself, recently earning a PhD in quantum chemistry from Auburn University. This year, he joins MIT as a part of the School of Science Dean’s Postdoctoral Fellowship program. Working with the Van Voorhis Group at the Department of Chemistry, Opoku’s goal is to advance computational methods to study how electrons behave — a fundamental research that underlies applications ranging from materials science to drug discovery.
“As a boy who wanted to satisfy my own curiosities at a young age, in addition to the fact that my parents had minimal formal education,” Opoku says, “I knew that the only way I would be able to accomplish my goal was to work hard.”
In pursuit of knowledge
When Opoku was 8 years old, he began independently learning English at school. He would come back with homework, but his parents were unable to help him, as neither of them could read or write in English. Frustrated, his mother asked an older student to help tutor her son.
Every day, the boys would meet at 6 o’clock. With no electricity at either of their homes, they practiced new vocabulary and pronunciations together by a kerosene lamp.
As he entered junior high school, Opoku’s fascination with nature grew.
“I realized that chemistry was the central science that really offered the insight that I wanted to really understand Creation from the smallest level,” he says.
He studied diligently and was able to get into one of Ghana’s top high schools — but his parents couldn’t afford the tuition. He therefore enrolled in Dadease Agric Senior High School in his hometown. By growing tomatoes and maize, he saved up enough money to support his education.
In 2012, he got into Kwame Nkrumah University of Science and Technology (KNUST), a first-ranking university in Ghana and the West Africa region. There, he was introduced to computational chemistry. Unlike many other branches of science, the field required only a laptop and the internet to study chemical reactions.
“Anything that comes to mind, anytime I can grab my computer and I’ll start exploring my curiosity. I don’t have to wait to go to the laboratory in order to interrogate nature,” he says.
Opoku worked from early morning to late night. None of it felt like work, though, thanks to his supervisor, the late quantum chemist Richard Tia, who was an associate professor of chemistry at KNUST.
“Every single day was a fun day,” he recalls of his time working with Tia. “I was being asked to do the things that I myself wanted to know, to satisfy my own curiosity, and by doing that I’ll be given a degree.”
In 2020, Opoku’s curiosity brought him even further, this time overseas to Auburn University in Alabama for his PhD. Under the guidance of his advisor, Professor J. V. Ortiz, Opoku contributed to the development of new computational methods to simulate how electrons bind to or detach from molecules, a process known as electron propagation.
What is new about Opoku’s approach is that it does not rely on any adjustable or empirical parameters. Unlike some earlier computational methods that require tuning to match experimental results, his technique uses advanced mathematical formulations to directly account for first principles of electron interactions. This makes the method more accurate — closely resembling results from lab experiments — while using less computational power.
By streamlining the calculations and eliminating guesswork, Opoku’s work marks a major step toward faster, more trustworthy quantum simulations across a wide range of molecules, including those never studied before — laying the groundwork for breakthroughs in many areas such as materials science and sustainable energy.
For his postdoctoral research at MIT, Opoku aims to advance electron propagator methods to address larger and more complex molecules and materials by integrating quantum computing, machine learning, and bootstrap embedding — a technique that simplifies quantum chemistry calculations by dividing large molecules into smaller, overlapping fragments. He is collaborating with Troy Van Voorhis, the Haslam and Dewey Professor of Chemistry, whose expertise in these areas can help make Opoku’s advanced simulations more computationally efficient and scalable.
“His approach is different from any of the ways that we’ve pursued in the group in the past,” Van Voorhis says.
Passing along the opportunity to learn
Opoku thanks previous mentors who helped him overcome the “intellectual overhead required to make contributions to the field,” and believes Van Voorhis will offer the same kind of support.
In 2021, Opoku joined the National Organization for the Professional Advancement of Black Chemists and Chemical Engineers (NOBCChE) to gain mentorship, networking, and career development opportunities within a supportive community. He later led the Auburn University chapter as president, helping coordinate k-12 outreach to inspire the next generation of scientists, engineers, and innovators.
“Opoku’s mentorship goes above and beyond what would be typical at his career stage,” says Van Voorhis. “One reason is his ability to communicate science to people, and not just the concepts of science, but also the process of science.”
Back home, Opoku founded the Nesvard Institute of Molecular Sciences to support African students to develop not only skills for graduate school and professional careers, but also a sense of confidence and cultural identity. Through the nonprofit, he has mentored 29 students so far, passing along the opportunity for them to follow their curiosity and help others do the same.
“There are many areas of science and engineering to which Africans have made significant contributions, but these contributions are often not recognized, celebrated, or documented,” Opoku says.
He adds: “We have a duty to change the narrative.”
Memorandum of understanding aims to further enable secure digital transformation across Saudi entities, in line with data security priorities
Widely adopted across the world, Microsoft’s sovereign-cloud offering enables governments and highly regulated industries to use cloud while maintaining national controls over data
Collaboration aims to support Saudi Arabia’s ambition to strengthen its digital infrastructure and grow the information and communication technology sector
PIF, Saudi Information Technology Company (SITE), and Microsoft today announced the signing of a memorandum of understanding (MoU) to explore the delivery of Microsoft’s sovereign-cloud services in Saudi Arabia, seeking to enhance the security, confidentiality and sovereignty of data within Saudi Arabia and to access cutting-edge cloud and AI technologies.
Microsoft brings extensive experience in delivering sovereign-cloud capabilities that enable governments and highly regulated industries across the world to adopt cloud while maintaining national controls over data, in line with the laws of specific regions and countries.
Under the MoU, Microsoft will work alongside PIF and SITE to assess how its sovereign-cloud model can further support Saudi Arabia’s security, compliance and data residency priorities, while providing access to advanced cloud and AI technologies. The MoU also aims to strengthen collaboration in areas such as joint research, development and innovation, and knowledge transfer.
PIF’s strategy for the information and communication technology sector contributes to positioning Saudi Arabia as a globally competitive hub by innovating and building capacity, in its mission to enable the development and diversification of the domestic economy.
The non-binding MoU is subject to satisfying certain necessary requirements and regulatory approvals, as applicable.
There is immense innovation in AI-driven robots, like this ARI -V2 robot, for use in healthcare, yet regulatory frameworks and ethical standards are lagging.
Technological advances in Artificial Intelligence applications for healthcare are quickly outpacing regulatory and ethical safeguards, creating a dangerous gap in patient safety, warns a milestone report on AI in Health Systems, published Wednesday by the World Health Organization’s European Region (WHO/EURO).
Paradoxically, the WHO’s urgent call for tighter AI regulation coincided with a far-reaching European Commission (EC) proposal Wednesday to loosen certain AI regulations in the European Union’s 27 member states – as part of a new “Digital Omnibus” package. The package aims to cut red tape for AI and other digital industries in the EU, but critics argue that it would severely water down data protection for individuals.
The WHO report’s findings are based on the first comprehensive survey of AI-implementation conducted in the WHO European Region from 2024-2025. The results culled from 50 out of 53 WHO European Region member states – whose borders extend from the United Kingdom to Russia, and through Central Asia to Turkey and Israel – highlight how countries are struggling to keep up with the pace of change.
“The rapid rise of AI in healthcare is happening without the basic legal safety nets needed to protect patients and healthcare workers,” warned Hans Kluge, WHO Regional Director for Europe.
The report comes at a time when AI is fundamentally transforming healthcare, helping doctors, nurses and other health workers diagnose and track diseases, and communicate better with patients. The high costs involved in developing and adopting AI in public healthcare systems also threaten to deepen the digital divide.
The report identifies “legal uncertainty” (reported by 86% of the states) and “financial affordability (78% of the states) as the biggest barriers to AI adoption. But along with the barriers to uptake, loose or non-existent regulatory standards pose new issues in terms of patient safety, liability and privacy.
WHO warning collides with EU deregulation moves
EU Commissioners Henna Virkkunen, Valdis Dombrovskis, and Michael McGrath present the “Digital Omnibus” package in Brussels.
In terms of the proposed “Omnibus” package, the Commission, the EU’s executive branch, claims it would simplify digital regulations, reducing administrative costs of AI uptake, particularly for small and medium-sized enterprises, as well as improving rules harmonisation amongst EU member states.
But a key element of the proposal involves amendments to the 2018 EU General Data Protection Regulation (GDPR), trumpeted as the “toughest data privacy and security law in the world,” to alter the definition of sensitive data.
Critics claim that this will also have a negative impact on the protection of health data. Prior to the Commission’s announcement, over 120 civil society organisations had strongly criticised the Omnibus package, labelling it the “greatest setback for digital fundamental rights in the history of the EU”.
‘Our DNA could be used to train the AI systems of big companies’
Another proposed amendment to the GDPR would allow companies to use personal data to develop and operate AI systems based on “legitimate interest”.
Ella Jakubowska, EDRi
“According to that change, a giant healthcare company could simply declare the use of sensitive data to train their AI systems as legitimate interest,” said Ella Jakubowska, an AI policy expert with the NGO European Digital Rights (EDRi), an association of civil and human rights organisations from across Europe.
“Our DNA could be used to train the AI systems of big companies,” Jakubowska warned in an interview with Health Policy Watch.
The Commission, meanwhile, maintains that under the new Omnibus rules, companies would still have to adhere to specific transparency criteria, as well as preserving the unconditional right for persons to whom the data relates to object.
European Commission also aims to postpone rollout of new AI rules specific to medical devices
In another move that worries patient advocates, the Commission also has proposed postponing the rollout of new rules specific to medical devices in the EU’s new EU Artificial Intelligence Act, which came into force last year. The rules aim to safeguard health, safety, and fundamental rights of patients with respect to high-risk AI systems used in certain medical procedures.
The rules were supposed to come into effect in August 2026, but the Commission wants to delay that by up to 16 months. The AI Act is the world’s first comprehensive set of AI regulations by a major regulatory authority.
European Union AI Act, which came into force in 2024.
Industry groups had lobbied for an even longer delay, arguing that applying the AI Act alongside existing medical device laws would create overlapping requirements. They claimed that this “dual regulatory burden” would stifle innovation and drive the development of life-saving technology out of Europe.
The Commission did not respond to a request from Health Policy Watch to respond to the WHO report or elaborate on the logic of the Omnibus package, with respect to the health sector, prior to publication.
In a statement from the EU’s Brussels headquarters, however, Michael McGrath, the EU Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection defended the new EU Omnibus legislation, saying: “The proposed amendments fully respect the high level of protection of personal data that we are committed to.”
He added that the “Digital Omnibus” proposal would still require approval from the EU Council of government ministers, as well as from the European Parliament.
Lack of liability rules puts patients at risk
Gaps in existing laws and in liability standards for the use of AI are widespread, with only four countries with health-specific AI rules in place.
The EU’s push to ease regulatory burdens for companies comes as the WHO report highlights the stark consequences of an already existing legal vacuum in healthcare both within the EU as well as across the wider WHO European Region. The failure to regulate AI strictly has left vulnerable populations exposed to critical risks, particularly in areas of liability and ethical standards, the report charges.
In the absence of clear regulations, hospital staff and patients are faced with critical liability issues, such as: who is responsible when an AI system makes a mistake?
Only four countries in the WHO European Region have established liability standards for AI in healthcare, the report reveals, with three more in the process of introducing legal requirements. This lack of clarity leaves doctors exposed and patients vulnerable to shouldering the burden alone of erroneous diagnoses and treatments.
Beyond liability related to a mistaken individual diagnosis or treatment, lurks dangers of algorithmic bias, the report states. For instance, if AI systems are trained using unrepresentative data, they can discriminate against vulnerable populations systematically. Critics say that distortions frequently occur along lines of gender, origin or social status, leading to patients either being invisible to the system or being unfairly targeted by it.
Other critical ethical concerns highlighted include the lack of safeguards around data privacy.
Governments are also failing to listen to the public. While most nations consult AI developers and healthcare providers, only 42% of countries included patient associations in the conversation. Just 22% of countries consulted the general public. The report warns that this “limited engagement” could result in the development of tools that do not meet real-world needs.
A deepening digital divide in regulation as well
The broader public was only conuslted by 22% of WHO/EURO member states in developing policies on the use of AI-driven technologies in health systems.
In terms of regulatory processes, per se, the European region is also suffering from severe fragmentation, with a clear divide between nations that are ready to govern AI, such as the United Kingdom and high-income nations in the EU and the European Economic Area, and less developed nations in central Asia and elsewhere, which are only just beginning to consider the issue. In addition, the vast majority of countries that have regulations (33) rely on cross-sector measures that often lack the specificity required to address risks to the health system.
Wealthier nations are, meanwhile, pushing ahead. The UK, for example, is proactively addressing regulatory gaps by testing AI medical devices in controlled clinical environments through initiatives like the AI Airlock system.
According to the WHO analysis, this ensures that new AI-based devices meet safety and efficacy standards before full deployment. This baseline requirement for medical devices is also preserved even in the looser regulatory measures of the EU’s “Digital Omnibus” proposal.
By contrast, countries such as Georgia report facing obstacles on every front, ranging from legal uncertainty to basic infrastructure deficiencies.
Financial constraints were identified as a major hurdle by 78% of Member States. The high cost of infrastructure and steep subscription fees for advanced systems risk turning AI into a luxury rather than a public service.
Kluge stressed that “equity must remain our guiding principle, ensuring that the benefits of AI extend not only across Member States but also within them, reaching all communities regardless of geography, income or digital capacity”.
WHO calls for strengthening funding and cross-border harmonisation
Private sector investments are concentrated in wealthier regions.
With private investment largely concentrated in Western and Northern Europe, the WHO is also calling on countries to clearly define what AI-related healthcare responsibilities should remain public and what is or will be delegated to private actors. Countries also need to ensure transparency in all public-private partnerships and secure access to AI technologies to uphold rights.
To overcome implementation challenges and harmonise regulation across the region, cross-border partnerships must also be strengthened, WHO says.
Dedicated financing streams and AI-sensitive public health reimbursement models similar to those used for medicines or medical procedures are needed to ease the AI financing gap. Under such models, healthcare providers such as hospitals and clinics would be compensated for using an approved AI system in patient care, for instance.
The WHO emphasises the importance of adhering to core principles when integrating AI. These include placing patients at the centre of care, upholding equity and human rights, ensuring system safety and public well-being, maintaining transparency, and establishing clear lines of responsibility and accountability.
“We stand at a fork in the road,“ said Natasha Azzopardi-Muscat, WHO Director of Health Systems. “Either AI will be used to improve people’s health and well-being, reduce the burden on our exhausted health workers and bring down health-care costs, or it could undermine patient safety, compromise privacy and entrench inequalities in care. The choice is ours.”
Image Credits: European Union, European Union , EDRi, EU , WHO/European Union , WHO/European Region , WHO/European Region.
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