Palo Alto Networks shares soar after the company raised its full-year guidance

On Thursday, Palo Alto Networks shares rose 12% in long-term trading after the maker announced stronger-than-expected third-quarter network security results.

Here's how the company does it:

Earnings: $1.79 per share, adjusted vs. $1.68 per share, as analysts expected, according to Refinitiv.

Revenue: $1.39 billion versus $1.36 billion, according to analyst estimates, according to Refinitiv.

According to a statement from Palo Alto Networks, revenue for the quarter ended April 30 increased 29% year over year.

"We delivered strong revenue growth in the third quarter, which is testament to our team's consistent performance leveraging strong trends in cybersecurity quests," Nikesh Arora, CEO of Palo Alto Networks, said.

Palo Alto Networks has been monitoring Russian cyberattacks since war broke out in the quarter and sees a greater interest in protecting businesses and government agencies across Europe, Arora told analysts during a conference call.

The lack of supply presents a challenge, Arora said. In addition, higher components and shipping costs reduced the company's adjusted gross margin for the quarter, said Deepak Golecha, chief financial officer. The restrictions are expected to continue for another year, Arora said.

Commodity prices increased both in the United States and abroad. So far, however, this isn't a massive challenge for Palo Alto Networks.

"We don't see any pressure from inflation or the perspective of reduced economic activity," Arora said.

Palo Alto Networks announced a next-generation firewall tool available exclusively through Amazon's public cloud during the quarter. The company also announced a tool designed to help enterprises identify vulnerabilities in software supply chains following issues caused by a malicious update to the Orion SolarWinds software.