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]

Group 1 - The software trade, particularly in cybersecurity, is experiencing pressure, exemplified by Palo Alto Networks (PANW) shares falling by up to 6% after a cut in full-year earnings outlook [1] - As of February 13, 74% of S&P 500 companies have reported results, with blended earnings growth at 13.2%, indicating a strong performance overall [1] - If the current growth rate of 13.2% holds, it would mark the 10th consecutive quarter of annual earnings growth for the S&P 500 and the fifth consecutive quarter of double-digit growth [2] Group 2 - General Mills (GIS) shares declined following disappointing earnings, while eToro (ETOR) saw a stock increase of over 20% due to a strong quarterly performance [2] - Upcoming earnings reports from major companies such as Walmart (WMT), Deere & Co. (DE), Analog Devices (ADI), Booking Holdings (BKNG), DoorDash (DASH), and eBay (EBAY) will be closely monitored by investors [3]

Market Overview - U.S. equity markets ended a volatile session on February 17th, 2026, with major indexes achieving modest gains despite significant intraday fluctuations, driven by optimism in financial sectors and concerns over the sustainability of the AI boom [1] - The S&P 500 rose 7.05 points (0.1%) to 6,843.22, the Dow Jones Industrial Average added 32.26 points (0.1%) to 49,553.19, and the Nasdaq Composite gained 31.71 points (0.1%) to 22,578.38 [2] Market Volatility - The CBOE Volatility Index (VIX) declined by 1.1% to 20.60, indicating elevated volatility compared to earlier in the year, with trading volume slightly below the 20-session average, reflecting caution among institutional investors ahead of key earnings reports [3] Corporate News and Stock Movements - Nvidia (NVDA) had a volatile session but stabilized after Citi reiterated its "Buy" rating ahead of its earnings release on February 25th [4] - Alphabet (GOOGL) fell 1.2% due to concerns about AI disrupting traditional software and search markets [4] - General Mills (GIS) shares dropped 7% after the company warned of increasing consumer unease due to inflation, cutting its 2026 profit forecast [5] - Genuine Parts (GPC) plunged 14.6% following a disappointing quarterly report and plans to split into two publicly traded companies by early 2027 [5] - Paramount Global (PARA) rose 4.9% amid M&A activity, while Warner Bros. Discovery (WBD) shares gained 2.7% as Paramount was allowed to submit a counter bid against Netflix [6] - Albemarle (ALB) saw an increase after Bank of America upgraded the lithium producer to "Buy," citing stabilized spot prices for lithium [6] Economic Data - The Consumer Price Index (CPI) rose 0.2% in January, slightly better than the 0.3% consensus estimate, with year-over-year inflation at 2.4% [7] - Food inflation spiked 7.3% in January, continuing to pressure consumer sentiment, while the Homebuilders Confidence survey improved to 38 for February, still below historical averages [7] Upcoming Events - Investors are monitoring upcoming earnings reports from Palo Alto Networks (PANW) and Toll Brothers (TOL), with Walmart (WMT) set to report on Thursday, which will provide insights into consumer health [8] - The market is also awaiting the Personal Consumption Expenditures (PCE) price index, which is expected to influence future interest rate policy decisions [8]

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. ...

Palo Alto Networks shares fell more than 5% in extended trading after the cybersecurity company released a forecast for adjusted earnings that was weaker than anticipated https://t.co/qMpTs2qJPw ...

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 ...

analyst Dan Ives. He joins us now from Wed Bush with what to expect this evening and what's been taking place in in that group. It's good to see you. >> Great to see you.>> So, why has cyber been swept up in everything that's been going on. >> Yeah, I look I think part of it is just this software, right. I mean, the view is that can cyber be disintermediated by some of these tools, whether it's anthropic or some of the, you know, really the startup tools that are coming from an AI perspective.to my point is ...

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 ...

Cyber stocks have endured a rough 2026 alongside an AI-driven sell-off in software stocks. That may create a buying opportunity, according to Wedbush analyst Dan Ives. "AI will be a major tailwind to the cyber security sector over the coming years as protection of use cases, data, and end points expand markedly," Ives wrote in a research note published Tuesday. While the growing use of AI has raised questions about business models in sectors ranging from enterprise software to real estate, Ives argued ...