** Shares of cybersecurity firm Palo Alto Networks PANW.O slump 7.34% to $151.50 in premarket trading

** Co trimmed its annual profit forecast on Tuesday, citing rising costs from recent acquisitions aimed at strengthening its AI capabilities

** Co expects $2.3  bln cash expenditure in Q3 for the CyberArk acquisition, after spending $2.6  bln on Chronosphere in the prior quarter

** "We still see PANW as a clear winner long-term in securing AI end-to-end, now integrating capabilities for identity security and observability via recent acquisitions as the agentic race in cybersecurity heats up," says brokerage Piper Sandler

** Expects adjusted profit per share of $3.65 to $3.70 per share for fiscal 2026, down from its earlier forecast of $3.80 to $3.90

** Average rating of 55 analysts on the stock is "buy"; their median PT is $220 - data compiled by LSEG

** As of last close, stock down 11.23% YTD