Palo Alto Networks founder Nir Zuk retires after 20-year tenure

SANTA CLARA - Palo Alto Networks (NASDAQ:PANW), a $117.5 billion cybersecurity powerhouse with annual revenue approaching $9 billion and industry-leading gross margins of ~74%, announced Monday that founder and Chief Technology Officer Nir Zuk has retired after more than 20 years with the cybersecurity company. According to InvestingPro data, the company has demonstrated remarkable growth with a 23% revenue CAGR over the past five years.

Lee Klarich, the company’s Chief Product Officer who joined in 2006, has been appointed to the board of directors and will assume the CTO role, according to a company press release.

Zuk founded Palo Alto Networks in 2005, pioneering the next-generation firewall technology that helped transform the cybersecurity industry. Under his technical leadership, the company grew into a global cybersecurity provider serving more than 70,000 organizations worldwide.

"I started Palo Alto Networks with a radical idea and the conviction to challenge a stagnant industry with a cybersecurity platform," Zuk said in the announcement. "With the most comprehensive security portfolio today, I am confident in Nikesh’s leadership and thrilled to pass the torch to Lee Klarich."

Chairman and CEO Nikesh Arora praised Zuk’s contributions, calling him "a legend in cybersecurity" whose work is "forever etched in our history books."

In his expanded role as Chief Product and Technology Officer, Klarich will oversee the company’s technology vision while leading both product and engineering organizations. His appointment to the board maintains technical expertise at the governance level.

John Donovan, lead independent director, expressed gratitude for Zuk’s service and welcomed Klarich to the board, noting his "deep technical domain expertise" makes him "the ideal successor to guide our technology vision forward."

The leadership change comes as Palo Alto Networks continues its focus on AI-powered security solutions and follows the company’s recent announcement of its intent to acquire CyberArk. InvestingPro analysis indicates the company is currently trading above its Fair Value, with strong financial health metrics and 12 additional exclusive insights available to subscribers. For detailed valuation analysis and comprehensive insights, access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.

In other recent news, Palo Alto Networks is preparing to release its fourth-quarter fiscal 2025 earnings report. Truist Securities has maintained its Buy rating with a price target of $205.00, citing the company’s acquisition of CyberArk as a strategic move to enhance its cybersecurity platform. Similarly, Cantor Fitzgerald reiterated its Overweight rating and set a $223.00 price target, expecting strong execution and large deal activity to bolster performance metrics. Rosenblatt adjusted its price target to $215 from $235, maintaining a Buy rating, while noting steady performance in software firewalls and AI-powered security operations.

Evercore ISI continues to rate Palo Alto Networks as Outperform with a price target of $220.00, suggesting that investors will be keenly interested in the company’s fiscal year 2026 guidance. In addition to these analyst perspectives, Palo Alto Networks has introduced new security solutions aimed at addressing quantum computing threats and securing multi-cloud environments. The company launched a Quantum Readiness Dashboard and new firewall models to enhance cryptographic safety. These developments reflect Palo Alto Networks’ ongoing efforts to innovate and expand its cybersecurity offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.