Palo Alto Networks Earnings Preview: Cybersecurity In Focus

Forbes

20-05-2025

Palo Alto Networks is scheduled to report earnings after Tuesday's close. The stock hit a record high near $208.39/share in 2025 and, as of this writing, it is currently trading near $194. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
The company is expected to report a gain of $0.77/share on $2.27 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.78/share. The Whisper number is the Street's unofficial view on earnings.
Charts & Data Courtesy of MarketSurge Inc.
Charts & Data Courtesy of MarketSurge Inc.
The company has grown its earnings nicely over the last several years. In 2020 the company earned $0.82/share. In 2021, the company earned $1.03. In 2022, earnings grew to $1.26 and in 2023 earnings came in at $2.22. In 2024, the company earned $2.84. Looking forward, earnings are expected to grow to $3.23 in 2025 and grow to $3.66 in 2026. Meanwhile, the stock sports a price to earnings ratio of 51 which is 2.1x the S&P 500.
Technically, the stock has been in a downtrend since February 2025 but is currently tracing out a bullish cup-with-handle pattern. The stock is only 7% below its record high which is very encouraging. After earnings, the bulls want to see the stock gap up and rally and the bears want to see it gap down and fall.
Here's the company profile according to Yahoo! finance:
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company's network security platforms include Prisma Access, a security services edge (SSE) solution, as well as Strata Cloud Manager, a network security management solution. It also provides cloud security solutions, including Prisma Cloud, a cloud native application protection platform; and Code to Cloud platform, as well as offers VM-Series and CN-Series virtual firewalls for inline network security on multi- and hybrid-cloud environments.
In addition, the company provides security operation solutions through Cortex platform that includes Cortex XSIAM, an AI-driven security operations platform; Cortex XDR for the prevention, detection, and response to complex cybersecurity attacks; and Cortex XSOAR for security orchestration, automation, and response; and Cortex Xpanse for attack surface management, as well as offers threat intelligence and advisory services under the Unit 42 name.
Further, it provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. Additionally, the company offers professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services.
It sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com