Palo Alto Networks (PANW) shares have decreased by 18.1% over the last 21 trading days. This recent decline is attributed to worries about reduced profit guidance resulting from acquisition integration expenses and slowing NGS (Next-Generation Security) growth.
Palo Alto (PANW) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Palo Alto Networks offers a comprehensive portfolio of cybersecurity products designed to protect the entire enterprise. The company's next-generation security products are helping businesses stop the sophisticated threats posed by artificial intelligence (AI).
Palo Alto Networks offers robust exposure to the fast-growing cybersecurity sector, with recent results showing double-digit revenue and margin expansion. PANW's Next Generation Security business drives growth, with annual recurring revenue forecasted to rise over 50% year-over-year, signaling strong momentum. Operating leverage is improving margins, but substantial share-based compensation and resulting dilution remain material concerns for valuation.
Cisco Systems edges past Palo Alto Networks with rising estimates, strong security adoption and lower valuation as integration costs weigh on PANW.
Palo Alto Networks' NASDAQ: PANW February guidance update sparked a buy-the-dip opportunity, at least according to analysts who highlight the growth, growth outlook, and cash flow while panning near-term weakness. While the 2026 earnings outlook was trimmed, there are mitigating factors, including outperformance acceleration and sustainability, as well as the underlying cause for the weakness.
Palo Alto Networks plans to close AI security gaps with the Koi acquisition, aiming to strengthen endpoint protection and expand its AI platform reach.
Some analysts encourage investors to look past a muddy outlook and focus on the company's recent momentum and AI opportunity.
Palo Alto Networks' string of recent deals is hurting its profit outlook, weighing on its stock.
Jefferies analysts have offered a cautiously optimistic take on Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP)' fiscal second quarter results, highlighting both near-term challenges from acquisitions and confidence in the company's longer-term outlook. The firm noted that while most top-line metrics for F2Q came in modestly above guidance, the performance of the services business was a disappointment.
Yesterday we were watching whether Palo Alto Networks could extend its earnings beat streak and deliver the forward guidance investors expected.
PANW tops Q2 estimates with 27% EPS growth and lifts FY26 revenue outlook to more than $11.3B, fueled by strong Next-Gen Security and ARR momentum.