(Bloomberg) — Cybersecurity company Palo Alto Networks Inc. tumbled in late trading after cutting its revenue forecast for the year, sparking concerns that customers are reining in tech spending.
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Sales will be $7.95 billion to $8 billion this fiscal year, the company said in a statement Tuesday. It previously projected revenue of as much as $8.2 billion, and analysts were estimating $8.18 billion.
The outlook suggests that customers may be dialing back their spending ambitions, even as online attacks proliferate. The top end of Palo Alto Networks’ sales forecast represents an increase of 16%, well below its 25%-plus growth rate of recent years.
The company did maintain its outlook for earnings and free cash flow for fiscal 2024, which Chief Financial Officer Dipak Golechha said reflected “disciplined execution on profitable growth.”
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