Palo Alto Networks (NASDAQ:PANW) Posts Quarterly Earnings Results, Misses Expectations By $0.45 EPS

Palo Alto Networks (NASDAQ:PANW) posted its quarterly earnings data on Tuesday. The network technology company reported $0.53 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.98 by ($0.45), Zacks reports. Palo Alto Networks had a return on equity of 10.53% and a net margin of 7.95%. Palo Alto Networks updated its FY 2027 guidance to 4.160-4.190 EPS and its Q1 2027 guidance to 0.960-0.980 EPS.

Palo Alto Networks Trading Down 5.2%

Shares of PANW traded down $20.04 during trading hours on Tuesday, reaching $362.09. 8,363,757 shares of the company traded hands, compared to its average volume of 8,557,258. The company’s fifty day moving average price is $346.54 and its two-hundred day moving average price is $250.56. The company has a market capitalization 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 quick ratio of 0.86, a current ratio of 0.86 and a debt-to-equity ratio of 0.04. Palo Alto Networks has a 12 month low of $139.57 and a 12 month high of $398.88.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on PANW shares. Stifel Nicolaus set a $415.00 price objective on Palo Alto Networks and gave the stock a “buy” rating in a report on Wednesday, August 19th. Rosenblatt Securities increased their price target on shares of Palo Alto Networks from $275.00 to $355.00 and gave the company a “buy” rating in a research report on Wednesday, June 3rd. Capital One Financial set a $421.00 price objective on shares of Palo Alto Networks and gave the stock an “overweight” rating in a report on Thursday, July 16th. Needham & Company LLC increased their target price on shares of Palo Alto Networks from $350.00 to $425.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Finally, Citizens Jmp boosted their price target on shares of Palo Alto Networks from $320.00 to $415.00 and gave the stock a “market outperform” rating in a research note on Wednesday, August 12th. One equities research 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 MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $370.87.

Key Palo Alto Networks News

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

Insider Buying and Selling

In other Palo Alto Networks news, Director Helle Thorning-Schmidt sold 700 shares of Palo Alto Networks stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $346.85, for a total transaction of $242,795.00. Following the sale, the director directly owned 5,898 shares of the company’s stock, valued at approximately $2,045,721.30. The trade was a 10.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director James J. Goetz sold 20,000 shares of the stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $279.90, for a total value of $5,598,000.00. Following the completion of the transaction, the director directly owned 20,000 shares of the company’s stock, valued at $5,598,000. This represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 37,735 shares of company stock valued at $10,814,266 over the last quarter. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Palo Alto Networks

Several hedge funds have recently bought and sold shares of PANW. Brighton Jones LLC increased its stake in shares of Palo Alto Networks by 147.7% during the fourth quarter. Brighton Jones LLC now owns 6,761 shares of the network technology company’s stock valued at $1,230,000 after purchasing an additional 4,031 shares in the last quarter. Bison Wealth LLC increased its position in Palo Alto Networks by 169.1% during the 4th quarter. Bison Wealth LLC now owns 5,212 shares of the network technology company’s stock valued at $948,000 after buying an additional 3,275 shares in the last quarter. Sivia Capital Partners LLC raised its stake in Palo Alto Networks by 66.3% during the second quarter. Sivia Capital Partners LLC now owns 3,484 shares of the network technology company’s stock valued at $713,000 after buying an additional 1,389 shares during the last quarter. Osterweis Capital Management Inc. grew its stake in shares of Palo Alto Networks by 11,100.0% in the second quarter. Osterweis Capital Management Inc. now owns 560 shares of the network technology company’s stock worth $115,000 after acquiring an additional 555 shares during the last quarter. Finally, Main Street Financial Solutions LLC increased its holdings in shares of Palo Alto Networks by 6.0% during the second quarter. Main Street Financial Solutions LLC now owns 4,398 shares of the network technology company’s stock valued at $900,000 after acquiring an additional 249 shares in the last quarter. Institutional investors own 79.82% of the company’s stock.

About Palo Alto Networks

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.