Palo Alto Networks (NASDAQ:PANW) Releases FY 2027 Earnings Guidance

Palo Alto Networks (NASDAQ:PANW) updated its FY 2027 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 4.160-4.190 for the period, compared to the consensus earnings per share estimate of 2.010. The company issued revenue guidance of $14.1 billion-$14.2 billion, compared to the consensus revenue estimate of $13.8 billion. Palo Alto Networks also updated its Q1 2027 guidance to 0.960-0.980 EPS.

Palo Alto Networks Price Performance

Shares of PANW traded down $20.04 during mid-day trading on Tuesday, hitting $362.09. 8,713,443 shares of the stock were exchanged, compared to its average volume of 8,568,425. The company has a debt-to-equity ratio of 0.04, a quick ratio of 0.86 and a current ratio of 0.86. The company has a market cap of $295.10 billion, a PE ratio of 296.80, a price-to-earnings-growth ratio of 11.74 and a beta of 0.91. Palo Alto Networks has a 52-week low of $139.57 and a 52-week high of $398.88. The firm has a 50-day moving average of $346.54 and a two-hundred day moving average of $250.56.

Palo Alto Networks (NASDAQ:PANW) last posted its earnings results on Tuesday, June 2nd. The network technology company reported $0.85 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.06. The firm had revenue of $3 billion during the quarter, compared to analyst estimates of $2.94 billion. Palo Alto Networks had a net margin of 7.95% and a return on equity of 10.53%. Palo Alto Networks’s revenue for the quarter was up 31.1% compared to the same quarter last year. During the same period last year, the firm posted $0.37 earnings per share. On average, equities analysts predict that Palo Alto Networks will post 2.01 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Scotiabank reissued an “outperform” rating and issued a $430.00 price objective (up from $320.00) on shares of Palo Alto Networks in a research note on Monday. TD Cowen increased their price target on shares of Palo Alto Networks from $360.00 to $400.00 and gave the company a “buy” rating in a report on Monday, August 17th. Guggenheim lowered Palo Alto Networks from a “neutral” rating to a “reduce” rating in a research report on Wednesday, May 27th. Arete Research boosted their price objective on Palo Alto Networks from $185.00 to $433.00 and gave the stock a “buy” rating in a research note on Monday, June 29th. Finally, JPMorgan Chase & Co. upped their price objective on Palo Alto Networks from $326.00 to $384.00 and gave the company an “overweight” rating in a research report on Tuesday, August 25th. One equities research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $370.87.

Insider Transactions at Palo Alto Networks

In other Palo Alto Networks news, Director Aparna Bawa sold 290 shares of the company’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $348.74, for a total value of $101,134.60. Following the transaction, the director owned 6,437 shares of the company’s stock, valued at $2,244,839.38. This represents a 4.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Helle Thorning-Schmidt sold 700 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $346.85, for a total value of $242,795.00. Following the completion of the sale, the director owned 5,898 shares in the company, valued at approximately $2,045,721.30. The trade was a 10.61% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 37,735 shares of company stock valued at $10,814,266. Company insiders own 1.40% of the company’s stock.

More Palo Alto Networks News

Here are the key news stories impacting Palo Alto Networks this week:

• Positive Sentiment: Jefferies expects Palo Alto Networks to exceed consensus forecasts for remaining performance obligations, annual recurring revenue and total revenue, with product growth potentially reaching 18% year over year. Palo Alto Networks set to beat fiscal Q4 metrics, guide above consensus
• Positive Sentiment: Scotiabank raised its price target to $430 from $320 and maintained a “sector outperform” rating, implying continued upside based on its outlook for the cybersecurity provider.
• Positive Sentiment: Longer term, rising cyber threats and increasing adoption of artificial intelligence support demand for Palo Alto Networks’ AI-enabled security platforms. Top AI-Powered Security Stocks Worth Buying Amid Rising Cyber Threats
• Neutral Sentiment: PANW has climbed about 30% since its prior quarterly results, substantially outperforming the broader software sector. That momentum reflects optimism but also sets a high bar for the upcoming report. Big Software Names Bounced Back in August
• Negative Sentiment: A broad software-stock selloff is pressuring Palo Alto Networks despite favorable company-specific developments, suggesting investors are focusing on high valuation multiples and macroeconomic risks rather than fundamentals. CrowdStrike Falls Despite Optiv Milestone, Palo Alto Drops
• Negative Sentiment: Investors are also contending with higher oil prices, inflation concerns and rising Treasury yields, all of which can weigh on growth-stock valuations. The company’s results and guidance after the close may therefore determine whether the recent rally can continue. Market Open: Inflation and Treasury Yields

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. State Street Corp lifted its holdings in Palo Alto Networks by 1.7% during the 3rd quarter. State Street Corp now owns 29,736,916 shares of the network technology company’s stock valued at $6,055,031,000 after buying an additional 505,924 shares in the last quarter. Bank of America Corp DE grew its stake in Palo Alto Networks by 11.9% in the 4th quarter. Bank of America Corp DE now owns 19,375,486 shares of the network technology company’s stock worth $3,568,964,000 after acquiring an additional 2,065,776 shares in the last quarter. Northern Trust Corp increased its position in shares of Palo Alto Networks by 0.5% during the third quarter. Northern Trust Corp now owns 7,528,248 shares of the network technology company’s stock worth $1,532,902,000 after acquiring an additional 36,511 shares during the period. First Trust Advisors LP increased its position in shares of Palo Alto Networks by 4.8% during the fourth quarter. First Trust Advisors LP now owns 6,193,015 shares of the network technology company’s stock worth $1,140,753,000 after acquiring an additional 286,052 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Palo Alto Networks by 4.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 4,928,031 shares of the network technology company’s stock valued at $907,743,000 after acquiring an additional 214,192 shares in the last quarter. Hedge funds and other institutional investors own 79.82% of the company’s stock.

Palo Alto Networks Company Profile

Palo Alto Networks (NASDAQ: PANW) is a cybersecurity company founded in 2005 and headquartered in Santa Clara, California. The firm develops a broad suite of security products and services designed to prevent successful cyberattacks and protect enterprise networks, clouds, and endpoints. Built around a platform strategy, its offerings target threat prevention, detection, response and governance across hybrid and multi-cloud environments.

The company’s product portfolio includes next‑generation firewalls as a core on‑premises capability, alongside cloud‑delivered security services and software for securing public and private clouds.