Palo Alto Networks (NASDAQ: PANW), one of the world's largest cybersecurity companies with more than 80,000 enterprise customers, will post its next earnings release on Feb. 17. Let's review its business model and see whether its stock is worth buying right now. Image source: Getty Images. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » ...

Core Insights - Palo Alto Networks, Inc. (PANW) is set to report its second-quarter fiscal 2026 results on February 17, projecting revenues between $2.57 billion and $2.59 billion, indicating a year-over-year increase of 14-15% [1][8] - The consensus estimate for PANW's fiscal second-quarter non-GAAP earnings remains at 93 cents per share, reflecting a 14.8% increase from the previous year [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $2.58 billion, suggesting a growth of 14.3% from the year-ago figure [1] - Earnings estimates for the current quarter have remained stable at 93 cents per share over the past 30 days [2][3] Performance Trends - Palo Alto Networks has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 5.1% [3] - The company’s Next-Generation Security (NGS) Annual Recurring Revenues (ARR) grew by 29% year-over-year to $5.85 billion in the first quarter of fiscal 2026, driven by its platformization strategy [7] Market Dynamics - The company is experiencing a slowdown in sales growth, with revenue growth expected to remain in the mid-teen percentage range for fiscal 2026, down from mid-20s in fiscal 2023 [18][19] - NGS ARR growth has decelerated for six consecutive quarters, with expectations for fiscal 2026 indicating growth of 26-27%, a decline from 32% in fiscal 2025 [20] Strategic Factors - Palo Alto Networks' platformization strategy is enabling larger customers to adopt its full security platform, contributing to faster growth and larger deals [6][7] - Significant deals, such as an $85 million XSIAM deal with a U.S. telecom company and a $33 million SASE deal with a U.S. federal agency, highlight the trend of enterprises consolidating security budgets [9] Valuation and Stock Performance - PANW shares have declined by 19.6% over the past year, underperforming the Zacks Computer and Technology sector, which grew by 21.5% [12] - The company's forward 12-month price-to-sales (P/S) ratio is 10.22X, significantly higher than the sector's average of 6.51X [16][23]

Group 1 - Walmart is set to report earnings pre-market next Thursday, leading a busy earnings week with over 40 companies reporting on Tuesday and Wednesday [1] - The upcoming earnings reports include significant players from the healthcare sector, such as Medtronic plc, and the tech sector with Palo Alto Networks Inc [1] - The week concludes with Enbridge Inc, a leader in the energy sector, reporting on Friday morning [1]

Core Viewpoint - Palo Alto Networks Inc is planning to dual list on the Tel-Aviv Stock Exchange following its $25 billion acquisition of CyberArk Software, while its stock has recently declined by 3.7% to $159.20 ahead of its fourth-quarter earnings report [1] Group 1: Stock Performance - Palo Alto stock has finished five of its last eight post-earnings sessions lower, averaging a 7.4% move over the last two years, with options pricing in a 9.2% swing for the upcoming earnings report [2] - The stock is currently near its 10-month low of $151.71, having shed 18% year to date, and if current losses persist, it will mark the third consecutive negative daily session [2] Group 2: Analyst Ratings - BTIG Research has lowered its price target for Palo Alto from $248 to $200, indicating potential bearish sentiment, although 38 out of 50 brokerages still maintain "buy" or better ratings [3] Group 3: Options Trading Activity - Options traders have shown increased bullish sentiment, with a 50-day call/put volume ratio of 3.37, which is higher than 98% of all other annual readings [5]

Core Viewpoint - Palo Alto Networks chose not to directly attribute a recent cyberespionage campaign to China due to concerns over potential retaliation from Beijing, opting instead to describe the hackers as a "state-aligned group that operates out of Asia" [1][2] Group 1: Company Actions and Decisions - The decision to soften the report's conclusions was made by Palo Alto executives following a software ban imposed by Chinese authorities on the company and other cybersecurity firms [1] - The original draft of the report by Palo Alto's Unit 42 indicated a connection to Beijing, but the final version refrained from naming China directly [1] - Palo Alto's vice president of global communications stated that the lack of attribution was not related to procurement regulations in China, emphasizing the need to inform and protect governments about the hacking campaign [1] Group 2: Cybersecurity Context - The hacking group identified as TGR-STA-1030 was first detected by Palo Alto in early 2025 and is believed to have conducted reconnaissance against nearly every country, successfully breaching government and critical infrastructure organizations in 37 countries [1] - External researchers noted that the hackers' activities align with patterns typically associated with Chinese state-sponsored espionage, suggesting a broader campaign linked to Beijing [1] - The report highlighted specific instances of hacking activity that coincided with diplomatic events, hinting at a strategic focus on countries of interest to China [1]

Core Viewpoint - Palo Alto Networks plans to dual list its shares on the Tel Aviv Stock Exchange (TASE) following the completion of its $25 billion acquisition of CyberArk Software, marking a significant integration into the Israeli tech ecosystem [1]. Company Developments - The dual listing will make Palo Alto the largest company by market capitalization on the TASE, with a current valuation of $115 billion [1]. - The company will trade under the ticker symbol "CYBR" in Tel Aviv, emphasizing its commitment to CyberArk's identity within its global strategy [1]. - CyberArk shareholders will receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share as part of the acquisition agreement [1]. Industry Impact - The dual listing is seen as a significant milestone for the TASE, providing local investors with easier access to Palo Alto's shares and enhancing the integration of the company into Israel's economy [1]. - The acquisition strengthens Palo Alto's Israeli R&D center, which is already its largest outside of Silicon Valley, as the company aims to become a comprehensive cybersecurity provider amid rising AI-driven demand [1].

Group 1: Company Updates - Palo Alto Networks has completed its acquisition of CyberArk for $45 per share in cash and 2.2005 shares of Palo Alto stock [1] - Millrose Properties is set to release its fourth-quarter financial results on February 26 [2] - Visa reported quarterly earnings of $3.17 per share, exceeding the consensus estimate of $3.14, with quarterly revenue of $10.9 billion, surpassing the Street estimate of $10.69 billion [3] - Apple reported fiscal first-quarter revenue of $143.76 billion, beating analyst estimates of $138.42 billion, and earnings of $2.84 per share, exceeding estimates of $2.66 per share [4] Group 2: Stock Performance - Palo Alto shares fell 0.1% to close at $165.30 [5] - Millrose Properties shares gained 1.1% to close at $31.84 [5] - Visa shares gained 0.3% to settle at $329.24 [5] - Apple shares gained 0.7% to settle at $275.50 [5]

Core Insights - Palo Alto Networks is a leading cybersecurity company set to release its quarterly earnings report on February 17, 2026, with an expected EPS of $0.93 and revenue of $2.58 billion, indicating significant growth from the previous year [1][3] Financial Performance - The anticipated EPS of $0.93 represents a 14.8% increase from the prior year, reflecting strong performance [2][6] - Revenue is projected to rise by 14.3% year-over-year, reaching $2.58 billion, which is expected to drive earnings growth for the quarter ending January 2026 [3][6] Market Valuation - The company's financial metrics reveal a price-to-earnings (P/E) ratio of 100.46, indicating high investor confidence [4][6] - The price-to-sales ratio is 11.83, and the enterprise value to sales ratio is 11.55, reflecting the market's valuation of the company [4] - The debt-to-equity ratio of 0.04 shows a low level of debt, while the current ratio of 0.99 suggests adequate liquidity [4] Earnings Call Insights - Management's discussion during the earnings call will be crucial in assessing the sustainability of immediate price changes and future earnings expectations [5]

Palo Alto Networks has finalised its previously announced $25bn worth acquisition of CyberArk, a move intended to incorporate identity security into its core platform strategy. The transaction, originally announced in July 2025, entitles CyberArk shareholders to receive $45 in cash and 2.2005 shares of Palo Alto Networks common stock for each CyberArk ordinary share. CyberArk was listed on Nasdaq prior to the closing of the deal. With this deal, Palo Alto Networks aims to address the increasing need for ...

Core Viewpoint - The Tel Aviv Stock Exchange (TASE) has successfully attracted Palo Alto Networks, the largest cybersecurity company globally, to dual-list on the TASE, marking a significant shift in the exchange's appeal to major tech firms [1][3]. Company Overview - Palo Alto Networks is currently traded on Nasdaq with a market capitalization of $115 billion and has extensive operations in Israel, being founded by Israeli entrepreneur Nir Zuk [2]. - The acquisition of CyberArk, valued at approximately $21 billion, will primarily be conducted through shares, which is expected to increase Palo Alto's market cap further [3]. Market Impact - Upon its listing, Palo Alto will have a valuation exceeding NIS 350 billion, making it the largest company on the TASE, significantly surpassing the current largest company, Teva Pharmaceuticals, which has a market cap of about NIS 125 billion [3][4]. - The TASE's market cap increased by 10% following the announcement, reflecting a substantial rise of over eightfold in the last three years, with the current market cap at NIS 13 billion [8]. Industry Significance - Palo Alto's dual-listing is expected to enhance liquidity and attract international interest in the Israeli market, reinforcing Israel's status as a global cybersecurity hub [6]. - The move may encourage other Israeli or Israel-connected companies listed only on Wall Street to consider dual-listing on the TASE, potentially increasing their visibility and demand [10]. Employment and Operations - CyberArk, which was acquired by Palo Alto, had nearly 4,000 employees, including about 1,000 in Israel, while Palo Alto had over 16,000 employees, with nearly 1,500 in Israel [12][13]. - The acquisition is noted as the second largest in the Israeli cybersecurity sector, following Google's acquisition of Wiz for $32 billion [12].