Overview

* Palo Alto fiscal Q1 2026 revenue grows 16% yr/yr, slightly beating analyst expectations

* Adjusted EPS for fiscal Q1 2026 beats consensus, reflecting operational efficiency

* Company announces intent to acquire Chronosphere, enhancing data and security offerings

Outlook

* Palo Alto Networks ( PANW ) expects Q2 revenue of $2.57 bln to $2.59 bln

* Company forecasts FY 2026 revenue of $10.50 bln to $10.54 bln

* Palo Alto Networks ( PANW ) sees FY 2026 non-GAAP EPS of $3.80 to $3.90

Result Drivers

* PLATFORMIZATION STRATEGY - CEO Nikesh Arora attributes strong results to platformization wins and strategic acquisitions

* INNOVATION ENGINE - Co cites robust innovation engine as a driver of growth, per CEO Nikesh Arora

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Slight $2.47 $2.46

Revenue Beat* bln bln (41

Analysts

)

Q1 Beat $0.93 $0.89

Adjusted (41

EPS Analysts

)

Q1 EPS $0.47

Q1 Net $334 mln

Income

Q1 $309 mln

Operatin

g Income

Q1 $412 mln

Pretax

Profit

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 40 "strong buy" or "buy", 12 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Palo Alto Networks Inc ( PANW ) is $228.00, about 11.8% above its November 18 closing price of $201.00

* The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 47 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)