Palo Alto Networks (NASDAQ:PANW) Issues Q1 2027 Earnings Guidance

Key Points

• Palo Alto Networks raised its outlook for fiscal 2027, guiding Q1 EPS to $0.960–$0.980 versus the $0.450 consensus estimate and revenue to approximately $3.3 billion versus $3.2 billion expected. Full-year EPS guidance is $4.160–$4.190.
• PANW shares fell 5.2% to $362.09 amid a broader software-stock selloff, despite analysts’ largely bullish view. The stock has a “Moderate Buy” consensus rating and an average price target of $370.87.
• Analyst price targets have increased significantly, with Citizens JMP and Mizuho setting targets of $415 and Scotiabank raising its target to $430; however, insiders sold 37,735 shares worth roughly $10.8 million over the past three months.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) updated its first quarter 2027 earnings guidance on Tuesday. The company provided earnings per share guidance of 0.960-0.980 for the period, compared to the consensus earnings per share estimate of 0.450. The company issued revenue guidance of $3.3 billion-$3.3 billion, compared to the consensus revenue estimate of $3.2 billion. Palo Alto Networks also updated its FY 2027 guidance to 4.160-4.190 EPS.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on PANW shares. Citizens Jmp boosted their target price on Palo Alto Networks from $320.00 to $415.00 and gave the company a "market outperform" rating in a research note on Wednesday, August 12th. Wolfe Research restated an "outperform" rating and set a $320.00 price target on shares of Palo Alto Networks in a research report on Wednesday, June 3rd. Berenberg Bank lifted their price target on Palo Alto Networks from $290.00 to $360.00 and gave the stock a "buy" rating in a research note on Wednesday, June 3rd. Mizuho set a $415.00 price objective on Palo Alto Networks and gave the company an "outperform" rating in a research report on Wednesday, August 19th. Finally, Stephens increased their price objective on Palo Alto Networks from $180.00 to $300.00 and gave the company an "equal weight" rating in a research note on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, forty have assigned a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Palo Alto Networks currently has a consensus rating of "Moderate Buy" and an average price target of $370.87.

Palo Alto Networks Stock Down 5.2%

PANW stock traded down $20.04 during trading on Tuesday, hitting $362.09. 8,363,757 shares of the stock traded hands, compared to its average volume of 8,557,258. The stock has a market cap of $295.10 billion, a price-to-earnings ratio of 296.80, a price-to-earnings-growth ratio of 11.74 and a beta of 0.91. The company has a debt-to-equity ratio of 0.04, a current ratio of 0.86 and a quick ratio of 0.86. The firm's 50 day moving average is $346.54 and its two-hundred day moving average is $250.56. Palo Alto Networks has a 1 year low of $139.57 and a 1 year high of $398.88.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) last issued its earnings results on Tuesday, September 1st. The network technology company reported $0.53 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.98 by ($0.45). Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%.Palo Alto Networks has set its FY 2027 guidance at 4.160-4.190 EPS and its Q1 2027 guidance at 0.960-0.980 EPS. On average, sell-side analysts anticipate that Palo Alto Networks will post 2.01 EPS for the current year.

Insider Buying and Selling at Palo Alto Networks

In other Palo Alto Networks news, EVP Dipak Golechha sold 5,000 shares of the company's stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $289.56, for a total value of $1,447,800.00. Following the transaction, the executive vice president directly owned 145,250 shares in the company, valued at $42,058,590. This represents a 3.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Josh D. Paul sold 900 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $345.00, for a total transaction of $310,500.00. Following the completion of the sale, the chief accounting officer directly owned 79,644 shares of the company's stock, valued at $27,477,180. The trade was a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 37,735 shares of company stock worth $10,814,266 over the last three months. 1.40% of the stock is owned by company insiders.

Palo Alto Networks News Summary

Here are the key news stories impacting Palo Alto Networks this week:

• Positive Sentiment: Jefferies expects Palo Alto Networks to exceed consensus forecasts for remaining performance obligations, annual recurring revenue and total revenue, with product growth potentially reaching 18% year over year. Palo Alto Networks set to beat fiscal Q4 metrics, guide above consensus
• Positive Sentiment: Scotiabank raised its price target to $430 from $320 and maintained a “sector outperform” rating, implying continued upside based on its outlook for the cybersecurity provider.
• Positive Sentiment: Longer term, rising cyber threats and increasing adoption of artificial intelligence support demand for Palo Alto Networks’ AI-enabled security platforms. Top AI-Powered Security Stocks Worth Buying Amid Rising Cyber Threats
• Neutral Sentiment: PANW has climbed about 30% since its prior quarterly results, substantially outperforming the broader software sector. That momentum reflects optimism but also sets a high bar for the upcoming report. Big Software Names Bounced Back in August
• Negative Sentiment: A broad software-stock selloff is pressuring Palo Alto Networks despite favorable company-specific developments, suggesting investors are focusing on high valuation multiples and macroeconomic risks rather than fundamentals. CrowdStrike Falls Despite Optiv Milestone, Palo Alto Drops
• Negative Sentiment: Investors are also contending with higher oil prices, inflation concerns and rising Treasury yields, all of which can weigh on growth-stock valuations. The company’s results and guidance after the close may therefore determine whether the recent rally can continue. Market Open: Inflation and Treasury Yields

Institutional Trading of Palo Alto Networks

Several institutional investors and hedge funds have recently bought and sold shares of the business. Bank of America Corp DE grew its stake in shares of Palo Alto Networks by 11.9% during the 4th quarter. Bank of America Corp DE now owns 19,375,486 shares of the network technology company's stock worth $3,568,964,000 after purchasing an additional 2,065,776 shares during the period. Renaissance Technologies LLC lifted its holdings in shares of Palo Alto Networks by 1,226.3% in the 4th quarter. Renaissance Technologies LLC now owns 908,500 shares of the network technology company's stock worth $167,346,000 after acquiring an additional 840,000 shares during the last quarter. Amundi raised its holdings in shares of Palo Alto Networks by 25.1% in the 3rd quarter. Amundi now owns 3,532,201 shares of the network technology company's stock valued at $750,875,000 after buying an additional 708,332 shares during the period. DRW Securities LLC lifted its holdings in Palo Alto Networks by 100.2% during the 4th quarter. DRW Securities LLC now owns 1,490 shares of the network technology company's stock worth $266,000 after buying an additional 619,631 shares in the last quarter. Finally, State Street Corp increased its holdings in Palo Alto Networks by 1.7% during the 3rd quarter. State Street Corp now owns 29,736,916 shares of the network technology company's stock worth $6,055,031,000 after purchasing an additional 505,924 shares during the period. 79.82% of the stock is currently owned by institutional investors and hedge funds.

Palo Alto Networks Company Profile

Palo Alto Networks NASDAQ: PANW is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company's product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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