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.
Palo Alto Networks (NASDAQ: PANW) reported a significant earnings surprise on February 17, 2026 – revenue increased 15.7% compared to the previous year, reaching $2.5 billion, cash flow stayed strong, and the company updated its full-year revenue forecast upwards. So, why is the stock down 8% in after-hours trading?
Although the revenue and EPS for Palo Alto (PANW) give a sense of how its business performed in the quarter ended January 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Palo Alto Networks (PANW) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.81 per share a year ago.
Palo Alto Networks trimmed its annual profit forecast on Tuesday, signaling rising costs from recent acquisitions to enhance AI capabilities, sending the cybersecurity company's shares down around 7% in extended trading.
Palo Alto Networks topped Wall Street's fiscal second-quarter estimates. The cybersecurity company's fiscal third-quarter earnings forecast fell short of expectations.
The company said it now expects full-year revenue to come in between $11.28 billion and $11.31 billion, up from a range of $10.5 billion to $10.54 billion.
Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) shares fell more than 5% in after-hours trading on Tuesday after the cybersecurity company issued profit guidance for the current quarter that came in below Wall Street expectations, despite reporting fiscal second quarter results that topped estimates. The company posted fiscal Q2 revenue of $2.6 billion, up 15% year over year and ahead of analyst estimates of $2.58 billion.