Company Overview

Palo Alto Networks Inc. (PANW) is an important worldwide cybersecurity supplier whose base is in Santa Clara, California. The company has a range of products including Prisma, Strata, and Cortex that address global security requirements of cloud, network, and AI-powered security.

The company is present in the Americas, Europe, Middle East & Africa, Asia-Pacific, and Japan, with a market cap of almost $130.8 billion.

Upcoming Earnings Release

Palo Alto Networks is on the verge of releasing its fiscal Q2 2026 earnings. The analysts have an expectation for the company to disclose EPS of near $0.49, which would be an increase of around 14% compared to the corresponding quarter last year.

During the last year, the stock of PANW has risen approximately 6.1%, which is still a little lower than the overall S&P 500 Index and technology sector ETFs.

Growth Expectations for 2026

Fiscal year 2026 will be marked with strong growth in the full year which is anticipated by analysts, with EPS expected to be around $2.08, this being an increase of roughly 27% as compared to 2025. In other words, it is a sign that the company’s business model and market demand are still very much confident.

Most of the analysts that provide coverage for PANW have their recommendation as “Strong Buy” and the average price target indicates a potential upside of over 20% from the current share prices.

Recent Performance and Challenges

During the first quarter of the fiscal year 2026, Palo Alto provided impressive adjusted EPS of $0.93 together with $2.47 billion revenue but later on, the stock retreated as a result of the investors' worries regarding the acquisition of Chronosphere, which was seen as expensive, and which might induce profitability pressure.

Investor Sentiment

Even if the company's financials are strong, there are still some investors who are careful because of the risk that acquisitions might bring and that the overall focus might change from organic growth. On the other hand, the general opinion is still positive in the light of long-term demand for the company's cybersecurity solutions.

The Bottom Line

Before the earnings report, the main points to focus on were Palo Alto's expected EPS, the growth of security platforms, and the company's response to investor anxiety regarding acquisitions and profitability.