Palo Alto Networks Shares Drop Despite Earnings Beat on Mixed Guidance
Palo Alto Networks (PANW) shares fell in after-hours trading despite reporting better-than-expected Q1 FY2026 results. The cybersecurity firm posted earnings of $0.93 per share, surpassing the $0.89 consensus, while revenue grew 15.4% year-over-year to $2.47 billion, slightly above estimates.
Guidance for Q2 FY2026 projects revenue between $2.57-$2.59 billion and EPS of $0.93-$0.95, largely in line with expectations. Full-year revenue is forecast at $10.50-$10.54 billion with EPS of $3.80-$3.90, mirroring analyst projections. The market's negative reaction suggests investors expected stronger forward-looking statements.
Wall Street maintains a Strong Buy rating with 25 bullish recommendations, reflecting confidence in PANW's long-term growth trajectory despite the guidance-induced volatility.
