Cybersecurity company Palo Alto Networks (PANW) is scheduled to announce its results for the fourth quarter of Fiscal 2025 after the market closes on Monday, August 18. PANW stock has declined 3% so far this year due to investor concerns over its recent $25 billion CyberArk acquisition, slowing revenue growth, and mixed Q3 earnings reactions. Wall Street analysts anticipate that the company will report earnings of $0.89 per share, reflecting a 17% year-over-year increase.
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Meanwhile, revenues are expected to rise by 14% from the same quarter last year, reaching $2.5 billion, according to data from the TipRanks Forecast page. It’s interesting to note that PANW has surpassed the consensus EPS estimates in all of the last nine quarters.
Analyst’s Views Ahead of PANW’s Q4 Earnings
Ahead of Palo Alto’s Q4 print, Rosenblatt Securities analyst Catharine Trebnick cut the price target to $215 from $235 while maintaining a Buy rating. The analyst expects growth to be fueled by steady momentum across software firewalls, firewall refresh cycles, and continued uptake of its AI-powered Security Operations platforms, such as XSIAM. She also pointed to early traction for the new Prisma Access Browser as enterprises seek to secure GenAI applications and browser-based workflows.
For fiscal 2025, Rosenblatt forecasts revenue growth above the company’s 14.5% guidance, supported by strong renewal activity and larger multi-product agreements. The firm also expects stronger margins and another earnings beat, in line with PANW’s record of topping estimates in recent quarters.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 7.97% move in either direction.
Is PANW Stock a Buy or Sell?
Overall, Wall Street has a Strong Buy consensus rating on Palo Alto Networks stock based on 30 Buys, six Holds, and one Sell recommendation. The average PANW stock price target of $215.73 indicates 21.82% upside potential.
