Artificial Intelligence (AI) Has Supercharged This Cybersecurity Stock That Has Shot Up 62% in 2026. It Can Still Soar Higher
https://www.fool.com/investing/2026/06/24/artificial-intelligence-ai-has-supercharged-this-c/
Publish Date: 2026-06-24 11:33:00
Source Domain: www.fool.com
The advent of artificial intelligence (AI) is turning out to be a tailwind for the global cybersecurity industry. Cyberattacks are becoming more sophisticated, as bad actors now have access to advanced AI tools which help them find targets easily and scale up attacks rapidly.
This explains why companies and governments are poised to spend heavily on shoring up their cyber defenses. Market research firm IDC estimates that global cybersecurity spending could reach $308 billion in 2026 and $430 billion in 2029. Not surprisingly, the demand for AI-powered cybersecurity tools will play a central role in boosting this market’s size.
Fortune Business Insights estimates that the AI-focused cybersecurity market could grow from $44 billion this year to $213 billion in 2034. Palo Alto Networks (PANW 1.22%) is already capitalizing on this terrific opportunity. The company released its fiscal 2026 third-quarter results (for the quarter ended April 30) on June 2, and its numbers and guidance clearly indicate that it is making the most of the AI-driven growth in the cybersecurity market.
Let’s take a closer look at Palo Alto’s performance and check why this cybersecurity stock can be a long-term winner.
Image source: Getty Images.
Palo Alto Networks’ AI-focused cybersecurity tools will accelerate growth
Palo Alto’s fiscal Q3 revenue increased 31% year over year to $3 billion. This included $388 million in revenue from the acquisitions of Chronosphere and CyberArk, which were completed in January and February this year. However, the more important metric to note here is that the company’s remaining performance obligations (RPO) increased by 36% year over year to $18.4 billion. Chronosphere and CyberArk contributed $1.8 billion to Palo Alto’s RPO last quarter.
Today’s Change
(-1.22%) $-3.56
Current Price
$287.36
Key Data Points
Market Cap
$237B
Day’s Range
$284.51 – $291.14
52wk Range
$139.57 – $302.95
Volume
44.9K
Avg Vol
8.3M
Gross Margin
71.94%
RPO is the total value of a company’s…
