What's Going On With Palo Alto Networks Stock Thursday?

Palo Alto Networks, Inc. (NASDAQ:PANW) shares are trading lower Thursday. The company reported fiscal first-quarter earnings on Wednesday after the market closed.

• PANW shares are retreating from recent levels. Find out why here.

What To Know: Palo Alto reported adjusted earnings per share of 93 cents, beating the consensus estimate of 89 cents. The company reported revenue of $2.47 billion, beating the consensus estimate of $2.46 billion.

The quarter also showed ongoing strength in Palo Alto Networks' platform strategy. Next-generation security annual recurring revenue climbed 29% year over year to $5.9 billion. Remaining performance obligations rose 24% to $15.5 billion as customers continued signing longer, multi-product deals tied to the company's broader security platform.

Management also highlighted demand driven by AI-related security needs. Palo Alto Networks pointed to recent acquisitions, including CyberArk and the newly announced deal for observability platform Chronosphere, as part of its push to deepen its data and security capabilities for enterprise clients.

Q2 Outlook: Palo Alto sees adjusted earnings per share between 93 cents and 95 cents, versus the consensus estimate of 93 cents. Furthermore, Palo Alto expects revenue between $2.57 billion and $2.59 billion, versus the consensus estimate of $2.57 billion.

FY26 Outlook: Palo Alto raised its adjusted earnings per share guidance from between $3.75 and $3.85 to between $3.80 and $3.90, versus the consensus estimate of $3.81. The company also raised its sales guidance from between $10.47 billion and $10.52 billion to between $10.50 billion and $10.54 billion, versus the consensus estimate of $10.51 billion.

Analyst Changes: Following the earnings report, multiple analysts issued updates.

• Bernstein analyst Peter Weed maintained an Outperform rating on Palo Alto and raised the price target from $207 to $210.
• BTIG analyst Gray Powell reiterated a Buy rating on Palo Alto and maintained a $248 price target.
• Needham analyst Mike Cikos reiterated a Buy rating on Palo Alto and maintained a $230 price target.
• Rosenblatt analyst Catharine Trebnick maintained a Buy rating on Palo Alto and maintained a  $250 price target.
• Cantor Fitzgerald analyst Jonathan Ruykhaver reiterated an Overweight rating on Palo Alto and maintained a $250 price target.

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PANW Price Action: At the time of writing, Palo Alto shares are trading 5.79% lower at $188.25, according to data form Benzinga Pro.

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