Palo Alto Networks (NASDAQ: PANW) reported fiscal second-quarter results that topped Wall Street estimates on both earnings and revenue, but lowered its full-year profit guidance, sending shares down more than 7% in after-hours trading Tuesday.
The Santa Clara, California-based cybersecurity company, which delivers AI-powered platforms designed to secure networks and cloud environments, generated earnings of $1.03 per share on revenue of $2.59 billion for fiscal Q2 2026. Analysts had expected earnings of $0.94 per share on revenue of $2.58 billion.
Palo Alto provides a broad range of cybersecurity offerings, including firewalls, threat intelligence, zero-trust architecture, and secure access service edge (SASE) solutions. According to the company, nine of the 10 Fortune 10 companies are customers, along with eight of the 10 largest U.S. banks and six of the world’s 10 largest oil and gas companies.
The quarterly results came days after Palo Alto completed its $25 billion acquisition of Israel-based CyberArk. Following the transaction, the company announced plans to pursue a dual listing of its shares on the Tel Aviv Stock Exchange.
Despite the earnings beat, Palo Alto reduced its fiscal 2026 full-year earnings guidance to a range of $3.65 to $3.70 per share, down from its prior outlook of $3.80 to $3.90. The consensus estimate stood at $3.87. The company raised its full-year revenue forecast to between $11.28 billion and $11.31 billion from $10.50 billion to $10.54 billion, exceeding expectations.
For the current quarter, Palo Alto projected earnings per share of $0.78 to $0.80 on revenue between $2.941 billion and $2.945 billion. Analysts had been expecting earnings of $0.92 per share on revenue of $2.61 billion.
