Palo Alto Networks (NASDAQ:PANW) Updates FY 2026 Earnings Guidance

19 Feb 2026, 15:04 by Kim Johansen · The Markets Daily

Palo Alto Networks (NASDAQ:PANW – Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 3.650-3.700 for the period, compared to the consensus EPS estimate of 3.140. The company issued revenue guidance of $11.3 billion-$11.3 billion, compared to the consensus revenue estimate of $10.5 billion. Palo Alto Networks also updated its Q3 2026 guidance to 0.780-0.800 EPS.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on PANW shares. UBS Group set a $215.00 price target on Palo Alto Networks and gave the stock a “neutral” rating in a research report on Tuesday, January 13th. Royal Bank Of Canada reiterated an “outperform” rating and issued a $220.00 target price on shares of Palo Alto Networks in a research note on Wednesday. Scotiabank reissued an “outperform” rating on shares of Palo Alto Networks in a report on Wednesday. Morgan Stanley reaffirmed an “overweight” rating and issued a $223.00 price objective (down previously from $245.00) on shares of Palo Alto Networks in a report on Wednesday. Finally, Stifel Nicolaus reduced their target price on shares of Palo Alto Networks from $200.00 to $185.00 and set a “buy” rating for the company in a research note on Wednesday. Thirty-three research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, Palo Alto Networks currently has a consensus rating of “Moderate Buy” and a consensus target price of $213.54.

View Our Latest Stock Report on PANW

Palo Alto Networks Stock Down 1.6%

Shares of NASDAQ:PANW traded down $2.46 during trading on Thursday, reaching $149.89. 1,687,234 shares of the company traded hands, compared to its average volume of 10,558,246. The firm has a fifty day simple moving average of $180.25 and a 200 day simple moving average of $191.93. Palo Alto Networks has a 1-year low of $144.15 and a 1-year high of $223.61. The firm has a market cap of $104.47 billion, a P/E ratio of 83.20, a price-to-earnings-growth ratio of 3.91 and a beta of 0.75.

Palo Alto Networks (NASDAQ:PANW – Get Free Report) last issued its earnings results on Tuesday, February 17th. The network technology company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.94 by $0.09. The company had revenue of $2.59 billion for the quarter, compared to analyst estimates of $2.58 billion. Palo Alto Networks had a return on equity of 18.42% and a net margin of 12.96%.The business’s revenue was up 14.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 EPS. Palo Alto Networks has set its FY 2026 guidance at 3.650-3.700 EPS and its Q3 2026 guidance at 0.780-0.800 EPS. As a group, research analysts anticipate that Palo Alto Networks will post 1.76 EPS for the current year.

Insider Buying and Selling

In other news, Director James J. Goetz sold 12,500 shares of Palo Alto Networks stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $195.33, for a total value of $2,441,625.00. Following the transaction, the director directly owned 75,184 shares in the company, valued at approximately $14,685,690.72. The trade was a 14.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Dipak Golechha sold 5,000 shares of the stock in a transaction that occurred on Tuesday, December 23rd. The shares were sold at an average price of $188.18, for a total value of $940,900.00. Following the sale, the executive vice president owned 155,119 shares of the company’s stock, valued at approximately $29,190,293.42. The trade was a 3.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 260,542 shares of company stock valued at $49,910,995 over the last 90 days. 1.40% of the stock is currently owned by insiders.

Key Palo Alto Networks News

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

Positive Sentiment: Q2 results beat expectations — PANW reported stronger-than-expected revenue and EPS, showing continued subscription/ARR momentum. Palo Alto Networks Q2 Earnings and Revenues Surpass Estimates
Positive Sentiment: Company raised full-year revenue outlook (to about $11.3B) and Next‑Gen Security ARR grew strongly, supporting the platformization thesis. Palo Alto Networks Reports Fiscal Second Quarter 2026 Financial Results
Positive Sentiment: Analysts and investors note a durable balance sheet and long-term platform opportunity; some view the pullback as a buy-the-dip if integration costs normalize. MarketBeat coverage of PANW
Neutral Sentiment: CEO defended the company’s strategy amid AI/software weakness — management is positioning PANW as differentiated, but investor scrutiny on execution and margins remains. Palo Alto shares sink 8%, CEO defends cybersecurity’s position as AI hits software stocks
Neutral Sentiment: Analyst reactions are mixed — while several firms reaffirmed buy ratings and high targets, many trimmed price targets in light of near-term profit pressure. MarketBeat analyst roundup
Negative Sentiment: Management flagged higher integration and deal-related costs that trimmed profit guidance, triggering the largest immediate selling pressure. Reuters: Palo Alto shares fall as deal costs pile up amid AI security push
Negative Sentiment: Industry/coverage pieces call out that the recent M&A spree is weighing on near-term margins and profit outlook, increasing execution risk. Investopedia: Deals Are Dragging on Its Profit Outlook
Negative Sentiment: The announced Koi acquisition (agentic endpoint security) and other buys are viewed as strategic but also raised investor concerns about further integration costs and dilution. Zacks: PANW to Buy Koi

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Ancora Advisors LLC increased its holdings in Palo Alto Networks by 2.4% during the 3rd quarter. Ancora Advisors LLC now owns 2,312 shares of the network technology company’s stock valued at $471,000 after purchasing an additional 55 shares in the last quarter. PGIM Custom Harvest LLC grew its holdings in shares of Palo Alto Networks by 1.4% during the third quarter. PGIM Custom Harvest LLC now owns 3,859 shares of the network technology company’s stock worth $786,000 after purchasing an additional 55 shares during the last quarter. CYBER HORNET ETFs LLC increased its stake in shares of Palo Alto Networks by 3.4% in the third quarter. CYBER HORNET ETFs LLC now owns 1,739 shares of the network technology company’s stock valued at $354,000 after buying an additional 57 shares in the last quarter. GWN Securities Inc. raised its holdings in shares of Palo Alto Networks by 6.1% in the fourth quarter. GWN Securities Inc. now owns 1,224 shares of the network technology company’s stock valued at $226,000 after buying an additional 70 shares during the last quarter. Finally, Williams Jones Wealth Management LLC. raised its holdings in shares of Palo Alto Networks by 3.7% in the fourth quarter. Williams Jones Wealth Management LLC. now owns 2,237 shares of the network technology company’s stock valued at $412,000 after buying an additional 80 shares during the last quarter. 79.82% of the stock is owned by institutional investors.

Palo Alto Networks Company Profile

(Get Free Report)

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.