Palo Alto Networks CEO: AI makes cybersecurity more critical

Palo Alto Networks CEO Nikesh Arora said artificial intelligence is making cybersecurity more important as increasingly sophisticated AI-powered attacks force companies to strengthen their defenses.

"I think we declared the 'SaaSpocalypse' dead for cybersecurity officially," Arora said on CNBC's "Mad Money" on Tuesday, referencing investor concerns earlier this year that software-as-a-service, or SaaS, companies would be disrupted by AI models.

Palo Alto reported stronger-than-expected quarterly results and raised its full-year outlook Tuesday. Revenue grew 31% from a year ago to $3 billion, with adjusted earnings per share coming in at 85 cents. The results marked another sign that fears of AI disrupting cybersecurity companies may have been overblown. In recent weeks, shares of Palo Alto and its peers have surged and erased their sell-offs from earlier this year.

The heightened threat environment has fueled a surge in customer demand, according to Arora. He said Palo Alto has fielded roughly 1,200 customer inquiries in recent weeks from organizations seeking guidance on how to prepare for rapidly evolving AI risks. The company has already met with about 800 of those customers and has 400 left to go.

"Just to give you a sense, we did 1,200 meetings all of last year. We've done 800 in the last 12 weeks," he said. "So we're busy."

Arora said customers "don't want to solve just the problem today." Instead, they are increasingly asking how to prepare for the next generation of AI-powered threats.

Rather than becoming a casualty of the AI boom, Arora said Palo Alto is benefiting from the growing need for cybersecurity solutions.

"We are a net enabler of better cybersecurity," he said. "We're not a victim of AI."