U.S. stock futures were higher this morning, with the Dow futures gaining over 200 points on Wednesday.Palo Alto reported fiscal second-quarter revenue of $2.59 billion, beating analyst estimates of $2.58 billion. The cybersecurity company posted adjusted earnings of $1.03 per share for the quarter, beating analyst estimates of 94 cents per share, according to Benzinga Pro.The company lowered its full-year adjusted earnings guidance from a range of $3.80 to $3.90 per share to a new range of $3.65 to $3.70 p ...

Markets have been volatile, with the S&P 500 ending 0.1 per cent higher on Tuesday after falling as much ‌as 0.9 per cent ⁠early in the ⁠session. The Nasdaq and the Dow also saw similar reversals. Wall Street's main indexes have been rocked this month by worries of disruption ​from rapidly improving AI tools that hit sectors from software to trucking.Broader AI-linked and megacap technology stocks had also lost ​ground as investors looked for stronger evidence the heavy investments in the technology were t ...

Palo Alto's Guidance Overshadows Strong Earnings. Its Stock Is Down. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Palo Alto's Guidance Overshadows Strong Earnings. Its Stock Is Down.By [Adam Levine]ShareResize---ReprintsIn this article[P ...

Palo Alto Networks (PANW.US)公布了好于预期的2026财年第二季度业绩，但由于对第三季度及全年 的盈利指引不及预期，截至发稿，这家网络安全公司周二美股盘后跌超8%。 Q2下一代安全年度经常性收入(ARR)同比增长33%，达到63亿美元。剩余履约义务同比增长 23%，达到160亿美元。 财报显示，Palo Alto Networks Q2营收同比增长15%至25.9亿美元，好于分析师普遍预期的 25.8亿美元。其中，产品销售额为5.14亿美元，较上年同期的4.21亿美元增长22%;订阅及支持 收入为20.80亿美元，较上年同期的18.36亿美元增长13%。Non-GAAP净利润为7.32亿美元， 较上年同期的5.66亿美元增长29%;调整后每股收益为1.03美元，好于分析师普遍预期的0.94美 元，上年同期为0.81美元。 该公司正将自己定位为一个整合平台，旨在通过将云安全、端点保护和安全操作打包成单一供应 商关系，替代现有的点对点解决方案。此策略瞄准的是那些面临攻击愈加复杂且安全预算接受更 严格审查的大型企业。 Palo Alto Networks还在周二宣布收购了以色列的网络安全公 ...

Market Overview - Major U.S. benchmarks finished higher, with the Dow Jones Industrial Average up 0.07% to 49,533.19, the S&P 500 up 0.1% to 6,843.22, and the Nasdaq up 0.14% to 22,578.38 [1] Palo Alto Networks Inc. (NASDAQ:PANW) - Palo Alto Networks' stock declined by 2.07%, closing at $163.50, with an intraday high of $166.01 and a low of $160.08; in after-hours trading, the stock fell 8.4% to $149.75 [1] - The company guided fiscal third-quarter adjusted EPS of 78–80 cents, below the 92-cent consensus, despite revenue guidance of approximately $2.94 billion exceeding estimates; full-year revenue outlook was raised to $11.28–$11.31 billion, but full-year adjusted EPS guidance was lowered to $3.65–$3.70, impacting investor sentiment [2] - Benzinga Edge Stock Rankings indicate Palo Alto Networks stock has a Momentum in the 16th percentile and Value in the 5th percentile [7] Advanced Micro Devices Inc. (NASDAQ:AMD) - Advanced Micro Devices' stock fell by 2.05%, closing at $203.08, with an intraday high of $205.30 and a low of $194.83; in after-hours trading, the stock fell 2.3% to $198.36 [3] - Investors are rotating out of semiconductor stocks due to high valuations and demand cycles, leading to caution despite strong earnings [3] Nvidia (NASDAQ:NVDA) - Nvidia's stock rose by 1.20%, ending at $184.97, with a high of $187.15 and a low of $179.18 during the day [4] OLB Group Inc. (NASDAQ:OLB) - OLB Group's stock skyrocketed by 256.54%, closing at $1.48, with an intraday high of $1.80 and a low of $0.66; in after-hours trading, the stock fell 32.92% to $0.99 [5] Meta Platforms Inc. (NASDAQ:META) - Meta Platforms' stock slightly dipped by 0.075%, closing at $639.29, with an intraday high of $642.60 and a low of $628.80; in extended trading, the stock gained 0.66% to $643.50 [6] - Meta's shares moved higher in extended trading after announcing a long-term AI infrastructure partnership with Nvidia to enhance its data centers for AI training and inference [6]

Core Insights - The cybersecurity company is positioned to benefit from the emergence of new risks associated with artificial intelligence [1] Group 1 - The company highlights that AI is creating "new classes of risks" which could lead to increased demand for cybersecurity solutions [1]

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]

Core Viewpoint - Palo Alto Networks has reduced its annual profit forecast due to increased costs from recent acquisitions aimed at enhancing AI capabilities, resulting in a 7% drop in shares during extended trading [1] Financial Performance - The company reported acquisition-related costs of $24 million in Q2, up from $10 million a year earlier [1] - Revenue for Q2 rose 15% to $2.59 billion, aligning with estimates [1] - Adjusted profit per share for Q2 was $1.03, surpassing estimates of 94 cents [1] Profit Forecast - The adjusted profit per share forecast for fiscal 2026 has been lowered to $3.65 to $3.70, down from the previous forecast of $3.80 to $3.90 [1] Revenue Forecast - Palo Alto raised its annual revenue forecast to between $11.28 billion and $11.31 billion, compared to earlier expectations of $10.50 billion to $10.54 billion [1] - The forecast for Q3 revenue is approximately $2.94 billion to $2.95 billion, exceeding analysts' average estimate of $2.60 billion [1] Acquisitions - The company announced the acquisition of Israeli cybersecurity startup Koi, following the purchase of CyberArk Software and Chronosphere [1] - The acquisitions are intended to expand the total addressable market and address AI-driven cyber threats [1]

Palo Alto Networks (NasdaqGS:PANW) Q2 2026 Earnings call February 17, 2026 04:30 PM ET Company ParticipantsAdam Borg - Managing DirectorAdam Tindle - Managing DirectorBrad Zelnick - Managing DirectorDipak Golechha - CFOGabriela Borges - Managing Director and Head of US Software Equity ResearchGregg Moskowitz - Managing DirectorHamza Fodderwala - SVP of Investor Relations and Strategic FinanceJohn DiFucci - Senior Managing DirectorJosh Tilton - Managing DirectorLee Klarich - Chief Product and Technology Offi ...

Financial Data and Key Metrics Changes - The company reported a strong Q2 with revenue growth of 15%, totaling $2.59 billion, and Next-Generation Security (NGS) ARR increased by 33% to $6.33 billion, with organic growth of 28% year-over-year [5][31][32] - The operating margin was 30.3%, marking the third consecutive quarter of 30%+ operating margins, reflecting a 190 basis point expansion year-over-year [37] - Diluted non-GAAP EPS reached $1.03, exceeding guidance, and adjusted free cash flow was $502 million, with a trailing 12-month adjusted free cash flow margin of 37.9% [37][38] Business Line Data and Key Metrics Changes - The SASE business surpassed $1.5 billion ARR, growing approximately 40% year-on-year, solidifying its position as the fastest-growing SASE provider [14] - Software Firewall ARR grew approximately 25%, driven by the need to secure dynamic multi-cloud environments [16] - XSIAM surpassed the $500 million ARR milestone, with over 600 customers, achieving mean time remediation of less than 10 minutes for over 60% of deployed customers [17] Market Data and Key Metrics Changes - The Americas region grew by 14%, EMEA by 17%, and JAPAC by 17%, indicating broad-based strength across all major markets [33] - The company reported a net retention rate of 119% among platformized customers, with low single-digit churn [9] Company Strategy and Development Direction - The company is focused on a platformization strategy, integrating various security solutions to address the evolving cybersecurity landscape, particularly with the rise of AI [5][6][10] - Recent acquisitions of CyberArk and Chronosphere are seen as pivotal for enhancing identity security and observability capabilities, with plans for rapid integration and innovation [25][24] - The company aims to become the largest identity security player, addressing the growing needs of identity to secure AI agents [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for cybersecurity solutions, particularly as enterprises begin to integrate AI into their workflows [6][50] - The shift towards AI is viewed as an opportunity for increased security adoption, with a focus on platformization and data harmonization [50] - The company anticipates continued growth in NGS ARR, projecting a range of $8.52 billion to $8.62 billion for the fiscal year 2026, reflecting a 53%-54% increase [43] Other Important Information - The company is preparing for the post-quantum era, addressing emerging threats and ensuring customers are equipped for future challenges [16] - The integration of Koi is expected to enhance endpoint security capabilities, particularly in relation to autonomous AI agents [22][23] Q&A Session Summary Question: Comparison of AI shift to cloud computing and M&A strategy - Management compared the current AI shift to the previous cloud transition, emphasizing the need for platformization and consolidation in security solutions [47][49] Question: Concerns about LLMs replacing SIEM tools - Management views LLMs as complementary to security capabilities, enhancing data classification and threat detection, but not a replacement for comprehensive security solutions [53][55] Question: Joint pipeline opportunities with CyberArk - Management highlighted the collaboration between CyberArk and Palo Alto Networks teams to pursue joint opportunities, with a focus on integrating capabilities and building a unified go-to-market strategy [60][62] Question: Strength in SASE business - Management noted that the acceleration in the SASE business is driven by customers seeking comprehensive solutions to address hybrid work environments and security needs [69][72] Question: Impact of AI adoption on network traffic - Management indicated that while AI adoption is increasing, it is still early to assess its full impact on network traffic, but expects growth as enterprises continue to adopt AI solutions [75][76]