Palo Alto Networks’ (PANW) stock is up 5% after the cybersecurity firm reported financial results that beat Wall Street forecasts on both the top and bottom lines.
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For its Fiscal fourth quarter, Palo Alto Networks reported earnings per share (EPS) of $0.95. That topped the $0.88 consensus expectation of analysts. Revenue in the period totaled $2.54 billion, which was ahead of the $2.50 billion forecast on Wall Street. Sales were up 16% from a year earlier.
In terms of guidance, Palo Alto Networks said that it expects Fiscal 2026 earnings per share of $3.75 to $3.85 on revenue of $10.47 billion to $10.52 billion. That was ahead of Wall Street calls for $3.67 a share in profit and sales of $10.42 billion.
Palo Alto Networks’ income statement. Source: Main Street Data
Company Founder Retires
Along with its latest financial results, Palo Alto Networks announced that company founder and Chief Technology Officer (CTO) Nir Zuk is retiring. Specifically, Zuk, who founded the cybersecurity company in 2005, is stepping down from his role as CTO. A replacement for Zuk has not been announced publicly.
In July of this year, Palo Alto Networks announced plans to buy Israeli identity security provider CyberArk (CYBR) for $25 billion. It’s the largest deal Palo Alto Networks has ever made and comes amid an acquisition spree that began after CEO Nikesh Arora took control of the company in 2018.
PANW stock is down 3% this year.
Is PANW Stock a Buy?
Palo Alto Networks stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 30 Buy, six Hold, and one Sell recommendations issued in the last three months. The average PANW price target of $215.73 implies 22.36% upside from current levels. These ratings could change after the company’s financial results.
