Key Takeaways

Shares of Palo Alto Networks sank Friday morning despite the cybersecurity firm's latest quarter results for the latest quarter coming in just above estimates.

After the bell Thursday, Palo Alto ( PANW ) reported $0.81 in fiscal second quarter adjusted earnings per share on $2.26 billion in revenue for the quarter, each just above what analysts had expected, per estimates compiled by Visible Alpha.

The company projected revenue of $2.26 billion to $2.29 billion for the third quarter, along with adjusted EPS of $0.76 to $0.77, each roughly in line with analyst estimates. Palo Alto's full-year forecasts for revenue, lifted slightly from the first quarter, and adjusted EPS were also in line with analyst consensus.

The firm's second-quarter results were "fueled by customers adopting technology driven by the imperative of AI, including cloud investment and infrastructure modernization," CEO Nikesh Arora said in a statement.

Also on Thursday, Palo Alto Networks said it was expanding its board of directors to 11 members from nine previously with the addition of former Danish Prime Minister Helle Thorning-Schmidt and former CEO of Swiss banking giant UBS Group ( UBS ) Ralph Hamers.

Palo Alto shares were down roughly 5% premarket Friday morning, after entering the day up just under 10% over the last 12 months.

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