Core Insights - Palo Alto Networks (PANW) reported first-quarter fiscal 2026 non-GAAP earnings of 93 cents per share, exceeding the Zacks Consensus Estimate by 4.5% and reflecting a 19.2% year-over-year improvement [1] - The company's revenues for the first quarter reached $2.47 billion, surpassing the Zacks Consensus Estimate by 0.52% and increasing from $2.14 billion in the previous year [1] Revenue Breakdown - Product revenues increased by 22.6% year over year to $434 million, making up 17.5% of total revenues [2] - Subscription and Support revenues, which accounted for 82.5% of total revenues, grew 14.3% year over year to $2.04 billion, driven by strong performance in SASE, Software Firewalls, and XSIAM offerings [2] Performance Metrics - Remaining Performance Obligation (RPO) was reported at $15.5 billion, up 24% year over year [3] - Next-Generation Security (NGS) annualized recurring revenues reached $5.85 billion, representing a 29% year-over-year growth [3] - Non-GAAP gross profit increased to $1.90 billion, with a gross margin of 76.9%, up 110 basis points sequentially [3] - Non-GAAP operating income rose to $746 million, maintaining a non-GAAP operating margin of 30.2%, despite a 40 basis points year-over-year contraction [3] Financial Position - As of October 31, 2025, the company had $3.07 billion in cash and cash equivalents, an increase from $2.27 billion as of July 31, 2025 [4] - Operating cash flow for the quarter was $1.77 billion, with non-GAAP adjusted free cash flow of $1.71 billion, reflecting a 69.2% adjusted free cash flow margin [4] Fiscal 2026 Guidance - For fiscal 2026, PANW expects revenues between $10.50 billion and $10.54 billion, revised from a previous range of $10.48-$10.53 billion [5] - The Zacks Consensus Estimate for fiscal 2026 revenues is $10.42 billion, indicating a 13% increase [5] - Remaining Performance Obligations are projected between $18.6 billion and $18.7 billion, with Next-Gen Security ARR forecasted between $7.00 billion and $7.10 billion, suggesting 26-27% annual growth [6] - The company anticipates a non-GAAP operating margin of 29.5-30% and an adjusted free cash flow margin of 38-39% [6] Earnings Projections - Non-GAAP earnings per share are expected to be in the range of $3.80-$3.90, an improvement from the previous target of $3.75-$3.85 per share [7] - The Zacks Consensus Estimate for fiscal 2026 earnings is $3.79, indicating a 13.6% increase [7] Q2 Fiscal 2026 Outlook - For the second quarter of fiscal 2026, revenues are projected between $2.57 billion and $2.59 billion, reflecting 14-15% year-over-year growth [8] - Non-GAAP earnings per share for Q2 are projected in the range of 93 to 95 cents, indicating 15-17% year-over-year growth [10]

Core Viewpoint - The rising U.S. budget deficit is impacting investor sentiment, leading to stock sell-offs, which may present buying opportunities for informed investors [1] Group 1: Uber Technologies (UBER) - Uber Technologies is highlighted as a stock pick following its Go-Get 2025 event, where it introduced new products aimed at user attraction [3][4] - Evercore analyst Mark Mahaney reiterated a buy rating on UBER with a price target of $115, noting the launch of Price Lock and Prepaid Pass as significant new offerings [4][5] - Mahaney believes Uber can sustain approximately 30% earnings growth, maintaining its position as one of Evercore's top "Longs" despite a solid year-to-date rally [7] Group 2: CyberArk Software (CYBR) - CyberArk Software reported better-than-expected Q1 2025 results, with subscription annual recurring revenue reaching $1.028 billion [8] - Baird analyst Shrenik Kothari reaffirmed a buy rating on CYBR, raising the price target to $460, citing strong performance across key metrics [9][10] - Kothari noted that CyberArk's identity security platform continues to attract customers, with no impact from macro pressures on deal flow [12] Group 3: Palo Alto Networks (PANW) - Palo Alto Networks delivered market-beating earnings and revenue for Q3 FY25, although its adjusted gross margin fell short of expectations [14] - TD Cowen analyst Shaul Eyal reiterated a buy rating on PANW with a price target of $230, highlighting strong results and significant product revenue growth [15][16] - Eyal expects Palo Alto to remain a market leader in next-gen firewalls and to expand into adjacent security markets, leveraging its large customer base for cross-selling opportunities [18]

Core Viewpoint - Palo Alto Networks reported a 15% year-over-year revenue growth for fiscal Q3 2025, reaching $2.3 billion, while maintaining strong profitability metrics [2][8]. Financial Performance - Total revenue for fiscal Q3 2025 was $2.3 billion, up from $2.0 billion in fiscal Q3 2024, reflecting a 15% increase [2][8]. - GAAP net income for fiscal Q3 2025 was $0.3 billion, or $0.37 per diluted share, compared to $0.3 billion, or $0.39 per diluted share, in the same quarter of the previous year [2][3]. - Non-GAAP net income for fiscal Q3 2025 was $0.6 billion, or $0.80 per diluted share, an increase from $0.5 billion, or $0.66 per diluted share, in fiscal Q3 2024 [3][22]. Strategic Developments - The company achieved a significant milestone by surpassing $5 billion in Next-Gen Security Annual Recurring Revenue (ARR), which grew 34% year-over-year to $5.1 billion [4][8]. - Remaining performance obligation increased by 19% year-over-year to $13.5 billion, indicating strong future revenue visibility [8][9]. Financial Outlook - For fiscal Q4 2025, the company expects Next-Gen Security ARR to be between $5.52 billion and $5.57 billion, representing a year-over-year growth of 31% to 32% [9]. - Total revenue guidance for fiscal year 2025 is projected to be between $9.17 billion and $9.19 billion, reflecting a year-over-year growth of 14% [9]. Operational Metrics - Non-GAAP operating margin for fiscal Q3 2025 was reported at 27.4%, compared to 25.6% in the same quarter of the previous year [21]. - The company’s total gross profit for fiscal Q3 2025 was $1.67 billion, up from $1.47 billion in fiscal Q3 2024 [20].