Zacks.com users have recently been watching Palo Alto (PANW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Palo Alto Networks stock drops nearly 20% in six months as acquisition costs and EPS cuts weigh on sentiment, despite strong SASE growth.
Palo Alto Networks (PANW) got a double upgrade from Arete to buy from sell just ahead of CrowdStrike's (CRWD) earnings after the close on Tuesday. Tom White offers a look into key levels to watch in Palo Alto shares and takes investors through an example options trade.
One of the world's foremost cybersecurity names, Palo Alto Networks ( NASDAQ:PANW ) is down 21% year-to-date and 24% over the past year, sitting at $144 against a 52-week high of $223.61.
Palo Alto's forward guidance for 2H FY2026 includes M&A contributions, but its organic revenue remains resilient. The Rule of 40 is expected to remain on track for 2H FY2026 based on organic revenue growth and non-GAAP operating margin outlook. M&A is expected to contribute $1.6 billion in RPO in 2H, driving strong overall growth. However, organic RPO growth is expected to decelerate from 1H.
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.