Proofpoint CEO on acquiring Varonis for $6.3B: ‘Opportunities like this don’t come every day’

Palo Alto Stocks Drop Amid AI Pressure, CEO Defends Cybersecurity

Palo Alto Networks warned that artificial intelligence is not poised to replace cybersecurity, CEO Nikesh Arora said on an earnings call, defending the sector amid a broader selloff in software stocks. Shares fell about 7% after the company reported fiscal second-quarter results that beat Wall Street estimates but issued third-quarter guidance below expectations. Arora said customers are integrating AI into security stacks and that many security products now include copilots. Palo Alto has been investing in AI and M&A: it launched a suite of agentic tools in Q4, closed a roughly $25 billion acquisition of identity-security firm CyberArk earlier this month, completed the purchase of AI observability platform Chronosphere in January, and announced a deal to buy Israeli startup Koi.