Zhi Tong Cai Jing·2026-02-18 15:17Core Viewpoint - Despite exceeding Wall Street expectations in Q2, Palo Alto Networks' stock fell over 9% due to Q3 guidance falling short of market expectations [1] Group 1: Company Performance - Palo Alto Networks reported Q2 performance that surpassed Wall Street expectations [1] - The stock price dropped to $148.5 following the Q3 guidance announcement [1] Group 2: Market Context - The software sector is under pressure as generative AI tools rapidly penetrate enterprise processes and web development [1] - Software-related ETFs have declined over 20% since the beginning of the year, reflecting broader market concerns [1] Group 3: AI Strategy - CEO Nikesh Arora stated that AI will not replace the cybersecurity industry in the short term, expressing confusion over the perception of AI as a cybersecurity threat [1] - Customers are recognizing the need for a more unified and consistent security architecture to leverage AI for faster and more efficient security responses [1] - The company is enhancing its AI capabilities by launching a new generation of "smart agent" tools and acquiring CyberArk, along with integrating the AI observability platform Chronosphere [1] - These investments are seen as a response to structural changes in the market, indicating the company's progression into the next phase of AI application [1]