Core Insights - Palo Alto Networks reported fiscal second-quarter results that exceeded Wall Street estimates, but shares fell 6% due to disappointing guidance for the upcoming quarter [1] - The company forecasted earnings for the fiscal third quarter between 78 cents and 80 cents, below the LSEG estimate of 92 cents [1] - Revenue is projected to be between $2.94 billion and $2.95 billion, surpassing the $2.60 billion estimate [1] Financial Performance - Revenue grew 15% year-over-year, reaching $2.59 billion compared to $2.3 billion a year ago [2] - Net income increased to $432 million, or 61 cents per share, up from $267 million, or 38 cents per share a year ago [2] - Earnings per share were reported at $1.03, excluding items, compared to the expected 94 cents [5] Strategic Acquisitions - The company is actively acquiring firms to enhance its cybersecurity capabilities, with over 20 acquisitions since CEO Nikesh Arora took over in 2018 [3] - Recently, Palo Alto completed its largest acquisition, paying $25 billion for CyberArk, and also acquired Chronosphere for over $3 billion [3] Market Trends and Performance Metrics - The company noted a trend towards platformization driven by AI, with customers looking to modernize their cybersecurity stacks [4] - Remaining performance obligations reached $16 billion, exceeding the StreetAccount estimate of $15.78 billion [4] - Annual recurring revenue rose 33% to $6.33 billion [4] - Palo Alto shares have declined 11% year-to-date [4]

The company said it now expects full-year revenue to come in between $11.28 billion and $11.31 billion, up from a range of $10.5 billion to $10.54 billion. ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Q2 Fiscal Year 2026 Earnings Call February 17, 2026 © 2026 Palo Alto Networks, Inc. All rights reserved. Proprietary and confidential information. © 2026 Palo Alto Networks, Inc. All rights reserved. Safe Harbor This presentation contains "forward-looking" statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements other than statements of historical or current facts, including, without limitation, statements regarding the cybersecurity threat lands ...

Exhibit 99.1 Palo Alto Networks Reports Fiscal Second Quarter 2026 Financial Results SANTA CLARA, Calif., Feb. 17, 2026 — Palo Alto Networks (NASDAQ: PANW), the global cybersecurity leader, announced today financial results for its fiscal second quarter 2026, ended January 31, 2026. Total revenue for the fiscal second quarter 2026 grew 15% year over year to $2.6 billion, compared with total revenue of $2.3 billion for the fiscal second quarter 2025. GAAP net income for the fiscal second quarter 2026 was $43 ...

the same reasons that it uses non-GAAP operating margin.Next-Generation Security ARR. Palo Alto Networks defines Next-Generation Security ARR as the annualized allocated revenue of all active contracts as of the final day of the reporting period related to all product, subscription and support offerings, excluding revenue from hardware products, and legacy attached subscriptions, support offerings and professional services. The company considers Next-Generation Security ARR to be a useful operating metric f ...

Live from Washington, D. C. This is balance of power with Joe Matthew and Kelly Lyons.Iran asks for two more weeks. Welcome to the Tuesday edition. As Iran responds to nuclear talks underway earlier today in Geneva, happening a short distance from talks on the war in Ukraine.I'm Joe Matthew alongside Kailey Leinz in Washington. Thanks for being with us here on the Tuesday edition. We'll have more on this shuttle diplomacy, haley, when we talk to Evelyn Farkas at the McCain Institute.Both meetings are now wr ...

Core Viewpoint - Analysts expect Palo Alto Networks to report Q2 revenue of $2.58 billion, an increase from $2.26 billion, and earnings per share of 76 cents, down from 81 cents in the same quarter last year [1][2] Financial Performance - The company has beaten analyst estimates for revenue for nine consecutive quarters [1] - Analysts anticipate earnings per share to decline, marking a potential shift in performance metrics [1] - Company guidance indicates expected revenue between $2.57 billion and $2.59 billion and earnings per share between 93 to 95 cents [2] Analyst Ratings - Analysts have been lowering their price targets ahead of the quarterly results, with several firms maintaining their ratings but adjusting targets downward [3][8] - Mizuho lowered its price target from $220 to $205 while maintaining an Outperform rating [8] - Other firms like BTIG, DA Davidson, JPMorgan, and Barclays also adjusted their price targets downward while maintaining their ratings [8] Strategic Moves - Palo Alto Networks announced plans to acquire Koi, an agentic endpoint security company, to address new challenges in cybersecurity [4][5] - The acquisition is part of a broader strategy to enhance the company's offerings in the AI era, as traditional security measures may not suffice against modern threats [4][7] - The company has recently completed other acquisitions, including Chronosphere and CyberArk, which may not fully impact the upcoming quarterly results [5][6] Market Sentiment - Shares of Palo Alto Networks have decreased by 22.6% over the last year, with current stock price at $161.24, down 3.4% on the day [10] - Investors are looking for strong guidance and performance in the upcoming earnings report to restore optimism [9]

The company has a range of security tools it sells to customers, which it built over the years through acquisitions. ...

Core Viewpoint - Palo Alto Networks shares have been affected by the broader software selloff, yet analysts maintain a positive outlook on the recent growth of its firewall business and the anticipated benefits from acquisitions [1] Group 1: Company Performance - Analysts are optimistic about the momentum in Palo Alto Networks' firewall business, indicating strong performance despite market challenges [1] - The company is expected to benefit from its recent acquisitions, which may enhance its market position and product offerings in the cybersecurity space [1] Group 2: Market Context - The software sector is currently experiencing a selloff, impacting various companies, including Palo Alto Networks [1] - Despite the negative market sentiment, the positive analyst outlook suggests resilience and potential for recovery in Palo Alto Networks' stock performance [1]