Palo Alto Networks forecasts quarterly billings above estimates

FILE PHOTO: A logo for Palo Alto Networks is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier/File Photo

(Reuters) - Palo Alto Networks forecast fourth-quarter billings above Wall Street estimates on Monday, a sign that clients are turning to the cybersecurity firm for its integrated software security tools.

The company expects fourth-quarter billings to be between $3.43 billion and $3.48 billion, the mid point of which is slightly above analysts' average estimate of $3.45 billion, according to LSEG data.

A surge in high-profile data and security incidents have boosted the need for integrated software solutions, as corporate customers are ramping up digitization, triggering demand for Palo Alto Networks, which is a bellwether for the industry.

Revenue for the third quarter ended April 20 grew about 15% to $1.98 billion, compared with analysts' estimate $1.97 billion.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Alan Barona)