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Santa Clara, California-based Palo Alto Networks, Inc. (PANW) is a cybersecurity company that provides advanced, AI-powered security solutions for enterprises, service providers, and government entities. Valued at a market cap of $147.9 billion, the company is scheduled to announce its fiscal Q3 earnings for 2026 in the near future.
Before this event, analysts expect this cybersecurity company to report a profit of $0.43 per share, in line with the year-ago quarter. The company has topped Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $0.68 per share in the previous quarter outpaced the consensus expectations by 38.8%.
For the current fiscal year, ending in July, analysts expect PANW to report a profit of $2.14 per share, representing a 30.5% increase from $1.64 per share in fiscal 2025. Furthermore, its EPS is expected to grow 6.5% year-over-year to $2.28 in fiscal 2027.
PANW has gained 3% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 35% return and the State Street Technology Select Sector SPDR ETF’s (XLK) 64.3% uptick over the same time period.
Shares of PANW declined sharply after Anthropic unveiled its latest AI model, Claude Mythos. The model showcased advanced capabilities in detecting and linking “software vulnerabilities” across major operating systems and browsers, raising concerns about its potential impact on the cybersecurity landscape.
The sell-off reflects investor fears that increasingly sophisticated AI tools could reduce reliance on traditional security infrastructure. Adding to the pressure, Palo Alto Networks is also grappling with company-specific challenges related to its $25 billion acquisition of CyberArk. Management has lowered its full-year profit outlook, citing higher-than-expected integration costs, which have further weighed on investor sentiment.
Wall Street analysts are highly optimistic about PANW’s stock, with a "Strong Buy" rating overall. Among 54 analysts covering the stock, 40 recommend "Strong Buy," three indicate "Moderate Buy,” and 11 suggest "Hold." The mean price target for PANW is $208.16, indicating a 21.5% potential upside from the current levels.
