1331 ET - Palo Alto Networks' strong F3Q showing proves that "customers are increasingly turning to platforms as they look to adopt AI," Morgan Stanley analysts say in a note. The company's strategy of "platformization," or getting their customers to unite fragmented cybersecurity services into one platform, seems to be paying off, the analysts say: "Reason being, not only is it cost efficient, but these vendors are reducing vulnerabilities given fewer 'seams' in their network that are caused by multiple vendors, something that is critical as the threat environment becomes more severe." It's still the early stages of this trend, with Palo Alto only having a single-digit share of the cybersecurity market, creating a substantial long-term growth runway for the company, Morgan Stanley says. Palo Alto slides 6.4%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

June 03, 2026 13:31 ET (17:31 GMT)

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