(Reuters) – Palo Alto Networks (NASDAQ:) beat Wall Avenue expectations for first-quarter revenue and revenue on Wednesday, owing to healthy spending for its cybersecurity products and companies amid a upward push in digital threats.

On the opposite hand, shares of the Santa Clara, California-based firm fell over 5% in prolonged trading. Palo Alto forecast 2d quarter in addition to annual revenue largely in step with analysts’ expectations.

The firm additionally launched a two-for-one stock split of its famed shares of overall stock. Procuring and selling on a split-adjusted foundation is expected to originate on Dec. 16.

Palo Alto raised its fiscal 2025 revenue outlook to between $9.12 billion and $9.17 billion, while analysts expected $9.13 billion, as per files compiled by LSEG.

A upward push in cyber crimes and hacks has spurred companies to make investments heavily into cybersecurity, benefiting grand companies that provide a huge preference of security products and companies, equivalent to Palo Alto.

The firm has been trying to obtain its clients to undertake a novel “platformization” technique to security by consolidating particular individual tools into one platform and simplifying management.

“Our platformization growth persisted in Q1, riding solid financial outcomes,” talked about Dipak Golechha, Palo Alto’s finance chief.

Palo Alto reported revenue of $2.14 billion for the most most primary quarter, beating estimates of $2.12 billion.

On an adjusted foundation, the firm earned $1.56 per portion, when put next with estimates of $1.forty eight apiece.

It forecast 2d-quarter revenue between $2.22 billion and $2.25 billion, when put next with estimates of $2.23 billion.

The firm additionally raised its forecast for adjusted rep earnings per portion to a unfold of $6.26 to $6.39 per portion, from $6.18 to $6.31 per portion it expected earlier.