Palo Alto Networks cuts annual profit forecast as deal costs bite, shares fall
Palo Alto Networks trimmed its annual profit forecast on Tuesday, signaling rising costs from recent acquisitions to enhance AI capabilities, sending the cybersecurity company's shares down around 7% in extended trading. The company announced on Tuesday the acquisition of Israeli cybersecurity startup Koi, following last July's purchase of CyberArk Software in its largest deal to date and the buyout of Chronosphere in November, as it steps up efforts to counter AI-driven cyber threats. Palo Alto said acquisition-related costs jumped to $24 million in the second quarter, from $10 million a year earlier.