Palo Alto Networks (NASDAQ:PANW) Issues Earnings Results

Key Points

• Palo Alto Networks reported earnings of $0.95 per share, exceeding expectations of $0.89, and achieved a 15.8% increase in quarterly revenue compared to last year.
• The company updated its FY 2026 guidance, forecasting 3.750-3.850 EPS and 0.880-0.900 EPS for Q1 2026.
• Analysts have mixed views on the stock, with a consensus rating of "Moderate Buy" and an average price target of $217.79.

Palo Alto Networks (NASDAQ:PANW - Get Free Report) issued its quarterly earnings results on Monday. The network technology company reported $0.95 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.06, RTT News reports. Palo Alto Networks had a return on equity of 19.48% and a net margin of 13.95%. During the same quarter in the prior year, the firm earned $0.75 earnings per share. Palo Alto Networks's quarterly revenue was up 15.8% compared to the same quarter last year. Palo Alto Networks updated its FY 2026 guidance to 3.750-3.850 EPS and its Q1 2026 guidance to 0.880-0.900 EPS.

Palo Alto Networks Stock Performance

Shares of NASDAQ PANW traded down $0.92 during mid-day trading on Monday, hitting $176.17. 17,521,466 shares of the stock were exchanged, compared to its average volume of 6,279,350. The company has a market cap of $117.47 billion, a P/E ratio of 100.67, a PEG ratio of 4.35 and a beta of 0.94. The stock's fifty day simple moving average is $192.00 and its two-hundred day simple moving average is $186.41. Palo Alto Networks has a twelve month low of $144.15 and a twelve month high of $210.39.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. UBS Group set a $185.00 price target on Palo Alto Networks and gave the stock a "neutral" rating in a report on Tuesday, August 12th. DA Davidson dropped their price objective on shares of Palo Alto Networks from $225.00 to $215.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Morgan Stanley set a $496.00 price objective on shares of Palo Alto Networks in a research note on Thursday, August 7th. Stephens cut shares of Palo Alto Networks from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 1st. Finally, Rosenblatt Securities decreased their price target on Palo Alto Networks from $235.00 to $215.00 and set a "buy" rating on the stock in a report on Thursday. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and twenty-six have given a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $217.79.

Insider Buying and Selling at Palo Alto Networks

In other Palo Alto Networks news, Director Aparna Bawa sold 526 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $190.00, for a total value of $99,940.00. Following the transaction, the director directly owned 8,632 shares of the company's stock, valued at approximately $1,640,080. This trade represents a 5.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Lee Klarich sold 120,774 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $171.58, for a total transaction of $20,722,402.92. Following the completion of the sale, the executive vice president owned 206,718 shares in the company, valued at approximately $35,468,674.44. This trade represents a 36.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 669,248 shares of company stock valued at $126,423,337 over the last three months. Insiders own 2.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PANW. Kestra Investment Management LLC boosted its holdings in Palo Alto Networks by 312.1% in the 2nd quarter. Kestra Investment Management LLC now owns 989 shares of the network technology company's stock valued at $202,000 after purchasing an additional 749 shares during the period. MayTech Global Investments LLC boosted its stake in shares of Palo Alto Networks by 3.7% in the 2nd quarter. MayTech Global Investments LLC now owns 201,379 shares of the network technology company's stock valued at $40,009,000 after purchasing an additional 7,275 shares during the last quarter. CANADA LIFE ASSURANCE Co boosted its stake in shares of Palo Alto Networks by 6.6% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 772,809 shares of the network technology company's stock valued at $158,273,000 after purchasing an additional 47,835 shares during the last quarter. Nikulski Financial Inc. boosted its stake in Palo Alto Networks by 1.8% during the second quarter. Nikulski Financial Inc. now owns 42,296 shares of the network technology company's stock worth $8,655,000 after acquiring an additional 760 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new position in Palo Alto Networks during the second quarter worth $399,000. 79.82% of the stock is currently owned by institutional investors and hedge funds.

Palo Alto Networks Company Profile

Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.

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