Palo Alto Founder Nir Zuk Retires as Company Reports Record Growth and Eyes $10B+ in Revenue

Nir Zuk, the visionary founder and Chief Technology Officer of cybersecurity giant Palo Alto Networks, has announced his retirement from the company, marking the end of a two-decade journey that helped redefine the global cyber industry.

Zuk, who founded Palo Alto in 2005, had long stepped away from day-to-day management, handing the CEO role to Nikesh Arora several years ago. Now, just weeks after the company’s bold and controversial $25 billion acquisition of CyberArk, Zuk is stepping down from his remaining role on the board of directors.

"I founded Palo Alto with a revolutionary idea to challenge the cyber industry, which was frozen in its tracks. Our vision has always been to lead, and the acquisition of CyberArk is a testament to this ambition," said Zuk in a farewell statement.

"It has been an incredible journey, and I leave with deep satisfaction knowing that the company we have built is stronger than ever."

Zuk's successor, Lee Klarich, previously served as VP of Products and will now take over Zuk's responsibilities at the company.

Departure Amid Disagreement on Strategic Direction

Zuk’s retirement comes amid speculation about his reported reservations over the CyberArk acquisition, which places Palo Alto in the identity management space—a sector Zuk had publicly questioned in the past. Nevertheless, he described the merger as part of the company’s larger vision and expressed full confidence in the leadership team.

In recent years, Zuk has shifted his focus to non-tech ventures, including the founding of Air Haifa and a digital banking project, signaling a broader move away from the cybersecurity industry.

Strong Financial Performance Boosts Confidence

Palo Alto Networks also released its Q4 2025 earnings this week, reporting revenue of $2.5 billion, up 16% year-over-year. Net income reached $673 million (or 95 cents per share), compared to $522 million a year earlier. The performance exceeded analyst expectations, pushing the company’s stock up over 6% in after-hours trading on Wall Street.

The company ended fiscal 2025 with $9.2 billion in total revenue, representing 15% annual growth. Looking ahead, Palo Alto expects to surpass the $10 billion revenue mark for the first time, projecting $10.5 billion in FY2026 revenue—excluding contributions from CyberArk, whose acquisition has yet to be finalized.

In the first quarter of FY2026, Palo Alto forecasts revenue in line with Q4 at $2.5 billion, with earnings per share expected to come in slightly lower at 88–90 cents.

Looking Ahead

Once integrated, CyberArk is expected to contribute over $1 billion annually to Palo Alto’s top line, further solidifying its position as the leading cybersecurity platform in the world.

Despite Zuk’s exit, the company appears to be entering a new phase of aggressive expansion, technological breadth, and financial strength.