Palo Alto Networks CEO: No cybersecurity abyss, guidance not lowered due to lack of demand.

• Nikesh Arora, CEO of Palo Alto Networks, informed CNBC's Jim Cramer that the company's recent earnings report showed no concerns regarding product demand.
• Despite beating Wall Street's earnings expectations, Palo Alto lowered its full-year guidance, causing its stock to plummet in after-hours trading.

Nikesh Arora, CEO of the company, informed CNBC's Jim Cramer that the company did not lower its revenue guidance due to anticipation of low demand for cybersecurity products.

Arora believes that the cybersecurity landscape is not a daunting challenge, but rather an opportunity to reshape the demand curve and accelerate growth in the long term. The company aims to platformize its customers and adapt to their needs in order to drive business growth in the future years.

Palo Alto reported earnings on Tuesday and, despite beating analyst expectations, it reduced its full-year revenue and billings guidance. This led to a 20% drop in after-hours stock trading. During a conference call with analysts, Arora explained the guidance change as a result of a "shift" in strategy, aimed at accelerating growth, platform migration, and consolidation, and activating AI leadership.

Arora stated that cyber criminals remain a constant threat, and the demand for the company's services has reached an all-time high. Despite this, customers are feeling overwhelmed with the complexity of cybersecurity processes, including managing multiple vendors and dealing with slow legacy infrastructure.

He stated that customers are not reducing their cybersecurity expenditure but rather expect more value for their money. He also expressed his belief that Palo Alto is better equipped to fulfill these expectations compared to its rivals.

To advance, you may need to merge and then expand. I'm not concerned about the stock price, he stated. "Let's revisit the fundamentals; our business is robust, and demand is robust."

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Palo Alto Networks.