Compared to Estimates, Palo Alto (PANW) Q2 Earnings: A Look at Key Metrics

Core Insights - Palo Alto Networks (PANW) reported revenue of $2.59 billion for the quarter ended January 2026, reflecting a year-over-year increase of 14.9% [1] - The company's earnings per share (EPS) was $1.03, up from $0.81 in the same quarter last year, exceeding the consensus EPS estimate of $0.93 by 10.67% [1] - The reported revenue slightly surpassed the Zacks Consensus Estimate of $2.58 billion, resulting in a revenue surprise of +0.5% [1] Financial Performance Metrics - Remaining Performance Obligation (RPO) stood at $16.00 billion, exceeding the average estimate of $15.81 billion from seven analysts [4] - Product revenue was reported at $514 million, surpassing the average estimate of $493.76 million based on 13 analysts, marking a year-over-year increase of +22% [4] - Subscription and support revenue reached $2.08 billion, slightly below the average estimate of $2.09 billion, with a year-over-year growth of +13.3% [4] - Subscription revenue was $1.4 billion, close to the average estimate of $1.41 billion, reflecting a year-over-year increase of +13.9% [4] - Support revenue was $676 million, marginally below the average estimate of $677.57 million, with a year-over-year change of +12.2% [4] Profitability Metrics - Non-GAAP product gross profit was $402 million, exceeding the average estimate of $387.92 million from 10 analysts [4] - Non-GAAP subscription and support gross profit was reported at $1.57 billion, slightly below the average estimate of $1.59 billion [4] - GAAP product gross profit was $399 million, surpassing the average estimate of $386.91 million from two analysts [4] - GAAP subscription and support gross profit was $1.51 billion, compared to the average estimate of $1.54 billion from two analysts [4] Stock Performance - Over the past month, shares of Palo Alto Networks have returned -11%, while the Zacks S&P 500 composite has changed by -1.4% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]