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.
Palo Alto Networks shares have been caught up in the software selloff, but analysts are upbeat about recent momentum for its firewall business and the future impact of acquisitions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Palo Alto Networks ( NASDAQ:PANW ) had a volatile week, climbing 4.79% to close Friday at $166.95 after starting the week at $159.32.
Palo Alto Networks is already a cybersecurity leader, trusted by dozens of major companies. It's focused on quantum computing and has released the industry's first quantum-security platform.
Palo Alto Networks is set to report earnings after the closing bell Tuesday, with traders anticipating a big move from the cybersecurity firm's stock in the wake of the results.