Palo Alto Networks Stock Drops Despite Q2 Results Narrowly Topping Estimates

Core Insights - Palo Alto Networks reported fiscal second quarter adjusted earnings per share of $0.81 and revenue of $2.26 billion, both slightly above analyst expectations [2][3] - The company projected third quarter revenue between $2.26 billion and $2.29 billion, with adjusted EPS of $0.76 to $0.77, aligning with analyst estimates [3] - The second-quarter performance was driven by increased customer adoption of AI-driven technologies, cloud investments, and infrastructure modernization, according to CEO Nikesh Arora [4] Company Developments - Palo Alto Networks expanded its board of directors from nine to eleven members, adding former Danish Prime Minister Helle Thorning-Schmidt and former UBS Group CEO Ralph Hamers [4][5] - Despite the positive earnings report, shares of Palo Alto Networks fell approximately 5% in premarket trading, following a nearly 10% increase over the past year [5]