Palo Alto Networks (PANW) Q2 2026 earnings
Palo Alto Networks It beat Wall Street’s second-quarter fiscal estimates after the bell on Tuesday, but shares fell 6% on disappointing guidance.
The company’s performance according to LSEG forecasts is as follows:
- earnings per share: $1.03 per share, excluding items, versus 94 cents expected
- Revenues: 2.59 billion dollars, while the expectation was 2.58 billion dollars
The cybersecurity company forecast weak earnings in the 78 cents to 80 cents range for the fiscal third quarter, falling short of LSEG’s forecast of 92 cents.
Revenue is expected to reach $2.94 billion to $2.95 billion, above the $2.60 billion forecast.
The company said its revenue was up 15% from $2.3 billion a year ago. Net income was $432 million, or 61 cents per share, compared to $267 million, or 38 cents per share, a year earlier.
Palo Alto also said it was buying on Tuesday Israeli cybersecurity startup Koi Securing AI agents as increasing AI innovations fuel more sophisticated cyber attacks. The company has invested heavily in AI tools and recently launched AI agents to help customers automate certain security responses.
The company is also in the midst of a major spending spree, with CEO Nikesh Arora transforming Palo Alto into a hub for all things cybersecurity. Since joining the company in 2018, he has managed more than 20 acquisitions.
Before this monthThe Santa Clara, California-based company has completed its largest acquisition ever, paying $25 billion for Israeli identity security company CyberArk. Closed more than once in January $3 billion acquisition cloud observability platform chronosphere.
“We have seen continued strength in platformizations, a trend accelerating due to AI; customers are eager to both modernize and normalize their cybersecurity stacks, aligning them with our approach,” Arora wrote in a statement.
Remaining performance obligations, which track the value of contracts to be delivered to customers, totaled $16 billion, topping StreetAccount’s estimate of $15.78 billion. Annual recurring revenue increased 33% to $6.33 billion.
Palo Alto shares are down 11% year to date.
