Core Viewpoint - Palo Alto Networks (PANW) is experiencing a significant decline in stock price, down 21% year-to-date and 24% over the past year, but its recent acquisitions in AI security may provide a turnaround opportunity [1] Financial Performance - Revenue for Q2 FY2026 grew 15% year-over-year to $2.59 billion, with adjusted EPS of $1.03 beating expectations [1] - Next-generation security Annual Recurring Revenue (ARR) increased by 33% to $6.33 billion [1] - Full-year profit guidance was cut due to acquisition costs, leading to a drop in share price by 5-7% in after-hours trading [1] Market Sentiment - Reddit sentiment shifted from bearish (35-38) to bullish (62) following strategic announcements, indicating a change in investor perception [1] - Analysts have set a price target of $216.83 for PANW, significantly higher than the current price of $148.70 [1] Strategic Acquisitions - Palo Alto Networks acquired CyberArk for $25 billion and Koi Security for $400 million, enhancing its AI security capabilities [1] - The acquisition of CyberArk adds identity security to its platform, while Koi Security focuses on AI endpoint protection [1] Competitive Landscape - The cybersecurity market is expanding, with network-layer DDoS attacks rising by 168% in 2025, creating opportunities for companies like Palo Alto Networks [1] - Analysts believe that companies that can integrate identity, endpoint, and network security will dominate the enterprise security market in the coming decade [1]

Palo Alto Networks ( PANW ) stock is down 21% year-to-date and 35% from the October high. The negative sentiment is also driven by the sharp pullback in the software sector. The 2Q FY2026 earnings beat both revenue andAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other ...

On February 23, 2026, shares of major Claude Code Security by Anthropic. CrowdStrike, Datadog and Zscaler fell 11%, while Fortinet and Okta dropped 6%. The trigger was not earnings. It was not regulation. It was an AI product in research preview.So, what is Claude Code Security, and why did it rattle global cybersecurity stocks?Anthropic’s Claude Code Security is an AI cybersecurity tool built on Claude that scans source code, detects vulnerabilities, and recommends fixes using advanced reasoning models. ...

February 13, 2026 05:04 AM GMT Cybersecurity | North America Q4 Preview and Reseller Survey – Round 2: Standing on a Platform, Highlighting AI Opportunity vs. Headwind With cyber names getting swept up in the latest AI software concerns, we look to the platform results to refocus investors on the tailwind AI is for cyber. Favor PANW, CRWD, particularly as SIEM/SASE stories should see growth from AI complexity, though see opportunity w/ most off-cycle names. Key Takeaways Opportunity Picks Up As We Get Towar ...

We recently published 10 Stocks Jim Cramer Talked About.  Palo Alto Networks Inc. (NASDAQ:PANW) is one of the stocks Jim Cramer talked about. Palo Alto Networks Inc. (NASDAQ:PANW) is a software company that specializes in providing cybersecurity solutions. Its shares are down by 23% over the past year and by 18% year-to-date. The firm reported its earnings last week. The results saw Palo Alto Networks Inc. (NASDAQ:PANW) earn $432 million in net income and $2.59 billion in revenue during the second quarter ...

Futures-options traders work on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S., February 23, 2026.Investors lost their sense of security in the business of cybersecurity companies after Anthropic on Friday launched Claude Code Security, which it said can scan code for vulnerabilities and suggest solutions. Shares of CrowdStrike, Palo Alto Networks and Cloudflare slumped, but it was IBM that was hit the worst, plunging nearly 13.2%.European markets also had a day in th ...

Wedbush Securities analyst Dan Ives is turning a market scare into a buying argument, saying Anthropic‘s move into cybersecurity with its Claude Code Security tool ultimately validates the investment case for established security vendors rather than threatening it.Ives Sees Validation, Not DisruptionWriting on X on Monday, Ives stated, “Anthropic with Claude Security going after the cyber security market with a code tool validates our thesis that cyber security is the next frontier for the AI Revolution. Ba ...

The Tel Aviv Stock Exchange rose today. The Tel Aviv 35 Index rose 0.27% to 4,243.47 points - a new record, the Tel Aviv 125 Index rose 0.05% to 4,204.63 points; but the BlueTech Global Index fell 1.08% to 670.86 points. The All Bond corporate bond index fell 0.06% to 424.33 points. Turnover totaled NIS 4.24 billion in equities and NIS 3.34 billion in bonds. On the foreign exchange market, the representative shekel-dollar rate was set unchanged from Friday, at NIS 3.123/$, and the representative shekel-eu ...

While artificial intelligence (AI) is one of the biggest disruptive technologies of this generation, it also poses a challenge to some established companies, including cybersecurity firms and software companies. In short, AI-powered programs are developing quickly enough that they can perhaps duplicate the actions of some software, including tools that automate workflows or provide analytics. For cybersecurity firms, it’s more of a double-edged sword. AI can help cybersecurity companies expand their reach ...

Core Viewpoint - Palo Alto Networks has experienced a significant decline in stock price, down over 25% in the past year, and further dropped following its recent fiscal Q2 earnings announcement, raising questions about potential investment opportunities [1]. Financial Performance - For fiscal Q2 2026, Palo Alto reported a revenue increase of 15% year over year, reaching $2.59 billion, which was at the high end of its forecast [5]. - Service revenue grew by 13% to $2.08 billion, with subscription revenue up 14% and support revenue increasing by 12% [5]. - Product revenue rose by 22% to $514 million, driven by growth in software firewalls [5]. - Adjusted earnings per share (EPS) surged by 27% year over year to $1.03, exceeding guidance of $0.93 to $0.95 [6]. Strategic Acquisitions - Palo Alto is actively pursuing a platformization strategy, acquiring companies to enhance its cybersecurity solutions [3]. - Recent acquisitions include Chronosphere for real-time data monitoring and CyberArk for privileged access, with a new acquisition of Koi for AI enterprise endpoint security solutions announced alongside the earnings report [3][4]. - While these acquisitions strengthen the company's market position, they are expected to negatively impact EPS in the short term due to the stock component of the CyberArk deal [4]. Future Guidance - The company updated its full-year guidance, projecting revenue growth of 22% to 23% for fiscal 2026, with a revised revenue forecast of $11.28 billion to $11.31 billion [8]. - The next-generation security annual recurring revenue (ARR) is expected to reach $8.52 billion, reflecting a growth rate of 53% to 54% [9]. - Adjusted EPS guidance was lowered to $3.65 to $3.70, indicating a growth rate of 9% to 11% [9]. Valuation and Investment Outlook - The recent drop in stock price has led to a more attractive valuation, with a forward price-to-sales ratio of 9 times fiscal 2027 estimates and a forward price-to-earnings ratio of 33 times 2027 estimates [10]. - Despite initial EPS pressure from acquisitions, these strategic moves are viewed as beneficial for long-term growth, suggesting that current stock levels may present a buying opportunity [10][11].