Core Insights - Palo Alto Networks (NASDAQ:PANW) is expected to release its earnings report on May 20, 2025, with historical trends indicating a tendency for positive stock movement post-announcement [2][3] - The consensus forecast for the upcoming earnings report estimates earnings per share (EPS) of $0.77 on revenue of $2.28 billion, reflecting growth from the previous year's EPS of $0.66 and revenue of $1.98 billion [4] - The company currently has a market capitalization of $127 billion, with trailing twelve months revenue of $8.6 billion, operating profits of $942 million, and net income of $1.3 billion [5] Historical Performance - Over the past five years, Palo Alto Networks has recorded a positive one-day return in 70% of earnings announcements, with a median positive return of 7.4% and a maximum return of 18.6% [2][8] - In the last three years, the percentage of positive one-day returns slightly decreased to 67%, with a median of 7.4% for positive returns and -3.0% for negative returns [8] Trading Strategies - Event-driven traders can leverage historical trends by taking positions before earnings releases or assessing post-earnings returns to inform medium-term trading decisions [3][7] - A strategy involving the correlation between short-term (1D) and medium-term (5D) returns can be employed, particularly if a strong correlation is identified [7][8] Peer Influence - The performance of peer companies can impact the post-earnings reaction of Palo Alto Networks, with price adjustments potentially occurring before the earnings are disclosed [9]

Core Viewpoint - Cybersecurity providers are expected to remain resilient amid market volatility caused by tariffs, as cybercriminal activities continue unabated. Investors are encouraged to consider four leading cybersecurity stocks this month [1]. Group 1: Palo Alto Networks - Palo Alto Networks is transitioning from a next-generation firewall provider to a comprehensive cybersecurity platform, implementing a "platformization" strategy to consolidate customers onto three main platforms [3]. - The strategy has resulted in 1,150 of its top 5,000 customers adopting one of its platforms, with a target of 2,500 to 3,500 by fiscal year 2030. Growth is also seen in its Cortex threat detection and response solution and Prisma Cloud [4]. - Although the platformization strategy temporarily slowed growth, it is expected to yield long-term benefits for investors [5]. Group 2: CrowdStrike - CrowdStrike is positioned to benefit from companies consolidating their cybersecurity needs onto a single platform, being a leader in endpoint security [6]. - The company offers a comprehensive suite of cybersecurity solutions, with 67% of customers deploying five or more modules and 21% using eight or more [8]. - With the impact of a previous IT outage behind it, CrowdStrike is expected to see growth accelerate, making it an attractive investment opportunity [9]. Group 3: Zscaler - Zscaler is a leader in zero-trust security, emphasizing continuous verification of users and devices for secure access [10]. - The company has successfully upsold its zero-trust systems and reported a 40% increase in annual contract value for its data security products, with overall revenue growing 23% year over year [12]. - Zscaler's strong net dollar retention rate of 115% indicates robust growth within its existing customer base, positioning it well for future success [12]. Group 4: SentinelOne - SentinelOne is a rapidly growing endpoint cybersecurity company with a low forward price-to-sales multiple of 6.6, despite achieving 29% revenue growth last quarter [13]. - The partnership with Lenovo, the world's largest enterprise PC vendor, to ship computers with SentinelOne's Singularity Platform is a significant opportunity [14]. - The company is also successfully upselling its Purple AI, which enhances security operations through hyper-automation, indicating a promising future [15][16].

Core Viewpoint - Palo Alto Networks is expected to report strong fiscal third-quarter results with projected revenues of $2.26-$2.29 billion, indicating a year-over-year growth of 14-15% [1][8] Revenue and Earnings Projections - The Zacks Consensus Estimate for fiscal third-quarter revenues is $2.27 billion, reflecting a growth of 14.6% from the previous year [1] - Non-GAAP earnings are projected to be 77 cents, representing a 16.7% increase from the same quarter last year [2] Performance History - Palo Alto Networks has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.5% [5] Factors Influencing Q3 Results - The company is likely to benefit from strong deal wins and increased demand for its machine learning-powered security models [8] - The accelerated migration to cloud platforms and rising cyberattacks due to hybrid work environments are expected to drive demand for cybersecurity solutions [9] - FedRAMP recognitions for several products are enhancing adoption among government organizations [10] Challenges and Risks - The company faces challenges related to the transition from hardware to software and cloud-based solutions, which may impact gross margins [11] - There are concerns about softening IT spending due to macroeconomic uncertainties, which could affect revenue growth [15] - Increased competition from established players like CrowdStrike and Zscaler necessitates continuous investment in capabilities [18][19] Stock Performance and Valuation - Over the past year, Palo Alto Networks' shares have increased by 21.8%, underperforming the Zacks Internet – Software industry's return of 31.8% [12] - The company is trading at a forward 12-month P/S of 12.52X, which is lower than the industry's 14.04X, indicating a fair valuation [13] Investment Consideration - The company's innovative product offerings and expanding market opportunities in areas like Zero Trust and private 5G security solutions present growth potential [14] - Despite near-term challenges, the long-term outlook remains positive, making the stock worth holding [21]

Core Insights - Analysts expect Palo Alto Networks (PANW) to report quarterly earnings of $0.77 per share, reflecting a year-over-year increase of 16.7% [1] - Revenue is anticipated to reach $2.27 billion, marking a 14.6% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.1% lower in the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Revenue Projections - Analysts predict 'Revenue- Product' to be $418.98 million, indicating a year-over-year change of +7.2% [4] - The estimate for 'Revenue- Subscription and support' is $1.86 billion, suggesting a change of +16.4% year over year [4] - The 'Revenue- Subscription and support- Support' is estimated at $598.89 million, reflecting a +9.3% change from the prior-year quarter [4] Subscription Metrics - The average prediction for 'Revenue- Subscription and support- Subscription' is $1.25 billion, indicating a year-over-year change of +20% [5] - Analysts estimate 'Remaining Performance Obligation (RPO)' to reach $13.54 billion, up from $11.3 billion reported in the same quarter last year [5] Profit Projections - 'Product gross profit Non-GAAP' is projected to be $329.84 million, compared to $316.60 million in the same quarter last year [6] - 'Subscription and support gross profit Non-GAAP' is expected to reach $1.43 billion, up from $1.22 billion reported in the same quarter last year [6] Stock Performance - Palo Alto shares have increased by +12.5% in the past month, outperforming the Zacks S&P 500 composite's +9% [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Group 1 - Palo Alto Networks is set to report its 3Q25 earnings on May 20th, with expectations for NGS ARR between $5.03 billion and $5.08 billion, reflecting a year-over-year increase of 33% to 34% [1] - The company's RPO is anticipated to be around $13.5 billion [1] Group 2 - The article emphasizes the importance of momentum in navigating the technology landscape, particularly in the context of past market events such as the dot com bubble and the AI boom [1]

Core Viewpoint - The market anticipates Palo Alto Networks (PANW) will report a year-over-year increase in earnings and revenues for the quarter ended April 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on May 20, 2025, with a consensus EPS estimate of $0.77, reflecting a +16.7% year-over-year change, and revenues projected at $2.27 billion, up 14.6% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.05% over the last 30 days, indicating a slight reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. Historical Performance - Palo Alto has consistently beaten consensus EPS estimates in the past four quarters, with a +3.85% surprise in the last reported quarter [12][13]. Investment Considerations - Despite the historical performance, the current combination of a 0% Earnings ESP and a Zacks Rank of 3 suggests that Palo Alto may not be a strong candidate for an earnings beat [11][16].

Core Insights - Stock splits can generate investor interest and create buzz around a stock, but they do not change the underlying fundamentals of the company [1][2] - The performance of stocks post-split can vary significantly, as seen with Nvidia, Broadcom, and Palo Alto Networks [2] Nvidia - Nvidia executed a 10-for-1 stock split on June 10, 2024, granting shareholders 10 shares for every one share owned [4] - Since the split, Nvidia's stock has experienced volatility, falling by as much as 22% and rising by 24% at different points [5] - Despite the stock's sideways movement, Nvidia's fundamentals have improved significantly, with a current P/E ratio of 40x, lower than its five-year average of 80x [6][7][9] Broadcom - Broadcom announced its first-ever stock split on a 10-for-1 basis on July 15, 2024, following a pre-split price of around $1,500 per share [10] - The stock has gained approximately 18% in the 10 months since the split, although it faced a 45% decline in value during a sell-off in AI stocks [11][12] - Analysts forecast a 36% profit growth for Broadcom this year, with a forward P/E ratio of 30, suggesting potential for long-term gains despite current high valuations [13][14] Palo Alto Networks - Palo Alto Networks announced a 2-for-1 stock split on November 20, 2024, after a 181% surge in stock price [15][16] - Since the split, the stock has declined by approximately 7%, attributed to market volatility and high valuations [17][18] - The current P/E ratio stands at 58 times 2025 earnings estimates, indicating that while long-term growth is expected, the stock may be overvalued in the short term [19][20]

Zscaler (ZS) and Palo Alto Networks (PANW) are two cybersecurity giants offering solutions, including secure web gateway, zero trust network access, security service edge (SSE) and cloud access security broking solutions.Both Zscaler and Palo Alto Networks are capitalizing on the rapid growth of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, th ...

Core Insights - Palo Alto Networks will release its fiscal third quarter 2025 financial results on May 20, 2025, after U.S. markets close [1] - A video webcast will be held on the same day at 1:30 p.m. Pacific time to discuss the results [1][2] - The webcast will be accessible from the "Investors" section of the Palo Alto Networks website, with a replay available three hours after the event [2] Company Overview - Palo Alto Networks is recognized as a global leader in cybersecurity, focusing on AI-powered solutions across network security, cloud security, and security operations [3] - The company emphasizes a platformization approach that integrates various security solutions into a unified platform, enhancing operational efficiencies and comprehensive protection [3] - Palo Alto Networks aims to empower businesses to achieve Zero Trust security and adapt to digital transformation amidst evolving threats [3] Workplace Recognition - The company has been acknowledged as a top workplace, being listed among Newsweek's Most Loved Workplaces from 2021 to 2024 [4] - It received a score of 100 on the Disability Equality Index for the years 2022 to 2024 and was recognized by HRC as one of the Best Places for LGBTQ+ Equality in 2022 [4]

The latest trading session saw Palo Alto Networks (PANW) ending at $186.27, denoting a -0.35% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.Coming into today, shares of the security software maker had gained 7.94% in the past month. In that same time, the Computer and Technology sector gained 1.66%, while the S&P 500 lost 0.7%.Market part ...