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Cybersecurity company Palo Alto Networks Inc. has surpassed Wall Street expectations by projecting stronger billings for the fiscal year. The company expects billings ranging from .9 billion to billion, compared to the average analyst estimate of .8 billion. Although the firm’s quarterly and annual revenue outlooks fell below analysts’ estimates, this positive projection has eased concerns of a slowdown in demand for cybersecurity services.

Palo Alto’s outlook is particularly noteworthy in the cybersecurity industry, which has recently seen a decrease in demand. Other companies in the sector, such as Fortinet Inc. and Check Point Software Technologies Ltd., have reported earnings that indicate a slowdown, attributed to a broader pullback in tech spending and an uncertain economy.

Palo Alto CEO Nikesh Arora expressed confidence in the company’s strategy, stating that it is resonating with an increasing number of customers, leading to continued consolidation. He also highlighted the positive reception of the company’s artificial intelligence-based security platform.

In light of Palo Alto’s strong billings projection, the company’s stock surged by 10% to 8.29 in late trading.

During the earnings call, Arora addressed the timing of the release of the results, acknowledging that it departed from the company’s usual schedule. He explained that the decision was made to allow ample time for one-on-one conversations with analysts before a sales conference beginning on Sunday.

Palo Alto’s total revenue for the fiscal fourth quarter was .95 billion, just slightly below analysts’ estimate of .96 billion.

Arora emphasized the need for the cybersecurity industry to prioritize real-time solutions to combat cyberattacks. He cited a new rule by the US Securities and Exchange Commission, which requires publicly listed companies to disclose cyber breaches within four days of determining their materiality, as a reason to accelerate the development of such solutions. Arora also acknowledged the “dark side” of artificial intelligence and emphasized the importance of addressing potential abuse.

Palo Alto Networks is committed to investing in precision AI across its product range as it continues to focus on providing effective cybersecurity solutions.

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