PANW Earnings: Palo Alto Networks Reports Strong Results, Says Company Founder Is Retiring
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
For its Fiscal fourth quarter, Palo Alto Networks reported earnings per share (EPS) of $0.95. That topped the $0.88 consensus expectation of analysts. Revenue in the period totaled $2.54 billion, which was ahead of the $2.50 billion forecast on Wall Street. Sales were up 16% from a year earlier.
In terms of guidance, Palo Alto Networks said that it expects Fiscal 2026 earnings per share of $3.75 to $3.85 on revenue of $10.47 billion to $10.52 billion. That was ahead of Wall Street calls for $3.67 a share in profit and sales of $10.42 billion.
Palo Alto Networks' income statement. Source: Main Street Data
Company Founder Retires
Along with its latest financial results, Palo Alto Networks announced that company founder and Chief Technology Officer (CTO) Nir Zuk is retiring. Specifically, Zuk, who founded the cybersecurity company in 2005, is stepping down from his role as CTO. A replacement for Zuk has not been announced publicly.
In July of this year, Palo Alto Networks announced plans to buy Israeli identity security provider CyberArk (CYBR) for $25 billion. It's the largest deal Palo Alto Networks has ever made and comes amid an acquisition spree that began after CEO Nikesh Arora took control of the company in 2018.
PANW stock is down 3% this year.
Is PANW Stock a Buy?
Palo Alto Networks stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 30 Buy, six Hold, and one Sell recommendations issued in the last three months. The average PANW price target of $215.73 implies 22.36% upside from current levels. These ratings could change after the company's financial results.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
35 minutes ago
- Yahoo
Israel set to approve 'largest' gas supply deal in its history to Egypt
The Israeli government is set to finalise a major gas supply agreement with Egypt, involving the export of 22% of resources from Leviathan, Israel's largest gas field, and 13% of the country's total natural gas to Cairo over several years. The deal comes after two years of delays and is expected to be signed in the next two weeks. New Energy, a partner in the Leviathan field, described the agreement as the "largest" in the history of the Hebrew state, noting that it will triple Israeli exports by 2028. The company announced that Egypt will buy 130 billion cubic metres of Israeli gas until 2040, worth up to $35 billion (€30bn). The project is an amendment to the 2019 agreement signed by Israeli Prime Minister Benjamin Netanyahu and Egyptian President Abdel Fattah el-Sisi, which stipulated the export of only around 60 billion cubic metres by the early 2020s. The project allows Israel to increase natural gas production and export it to Asian and European markets, while at the same time guaranteeing Egypt a stable supply for its power plants and supporting the country's liquefied natural gas (LNG) sector. Stages of the deal and quantities of gas NewMed Energy (formerly known as Delek Drilling) confirmed that the deal will take place in phases, with Cairo first buying the gas through Egyptian importers Blue Ocean Energy, with 20 billion cubic metres starting in the first half of 2026, and an additional 110 billion cubic metres after the expansion of Leviathan's production is completed, according to the Hebrew newspaper Globes. The company described the deal as pivotal, as it will allow the field's production capacity to expand from 21 billion cubic metres to 23 billion cubic metres per year, strengthening Leviathan's position as one of the most important gas sources in the region. Related Top UK CEOs richer than ever: FTSE 100 boss pay breaks records for third year EU signs €500 million loan to safeguard Ukraine's energy security ahead of winter Export plan for Israel's domestic economy By 2035, Israel will export 60% of the gas produced in the field, while 40% will be allocated to the domestic market to meet the needs of new power plants. In 2024, the field produced about 11 billion cubic metres of gas, 50% of which was exported to Egypt, while the rest was distributed between Israel's domestic economy and Jordan. In terms of gas supply to the Israeli economy, NewMed Energy confirmed that the expansion will ensure that from the 2040s, Leviathan will be Israel's main source of gas, providing the bulk of the country's natural gas consumption until the end of the field's life. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
36 minutes ago
- Yahoo
Baird Keeps Buy Rating on Palo Alto Networks (PANW), Reiterates PT
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Most Profitable Large Cap Stocks to Buy According to Analysts. On August 14, Shrenik Kothari from Robert W. Baird maintained a Buy rating on Palo Alto Networks, Inc. (NASDAQ:PANW) with a price target of $230. The analyst noted that the company is heading into its fiscal fourth quarter with favorable conditions. Kothari expects the revenue and annual recurring revenue to grow significantly year-over-year due to easier comparison. Moreover, the company acquired CYBR, and the analyst believes that this strategically improves the company's platform. He also likes the current valuation of the company, making it an attractive risk/reward situation. A cutting-edge computer lab full of IT experts monitoring the security of multiple systems. Palo Alto Networks, Inc. (NASDAQ:PANW) provides AI-powered security solutions for networks, cloud environments, and security operations. While we acknowledge the potential of PANW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 hours ago
- Yahoo
Should You Buy, Sell or Hold ZIM Stock Ahead of Q2 Earnings?
ZIM Integrated Shipping Services ZIM is set to report second-quarter 2025 results on Aug. 20, before the market opens. The EPS estimate for the to-be-reported quarter has been revised 42.9% upward to $1.50 per share over the past 60 days. The bottom-line projection indicates a year-over-year decline of 51.3%. The Zacks Consensus Estimate for quarterly revenues, currently pegged at $1.77 billion, suggests a year-over-year decrease of 8.5%. Image Source: Zacks Investment Research For 2025, the Zacks Consensus Estimate for ZIM's revenues is pegged at $7.01 billion, implying a contraction of 16.8% year over year. The consensus mark for 2025 EPS is pegged at $2.83, implying a decline of 84.1% year over year. In the trailing four quarters, this shipping company surpassed EPS estimates on each of the four quarters, with the average earnings surprise being 34.5%. ZIM Integrated Shipping Services Price and EPS Surprise ZIM Integrated Shipping Services price-eps-surprise | ZIM Integrated Shipping Services Quote Q2 Earnings Whispers for ZIM Stock Our proven model does not predict an earnings beat for ZIM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ZIM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. Factors Shaping ZIM's Q2 Results We expect the company's bottom-line performance to have been hit by escalated voyage operating costs. High labor costs are also likely to have been a spoilsport. Geopolitical risks pose operational challenges and might hurt results. An update on the tariff concerns is expected on the second-quarter conference call. On a brighter note, continued fleet expansion initiatives are likely to have driven the company's performance. Reduced container availability due to Red Sea tensions is expected to have raised freight costs. This is anticipated to have aided the quarterly performance of ZIM, which provides services to East Mediterranean and Israeli ports. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings. We expect an update from the management on the recent reports that CEO Eli Glickman is collaborating with shipping magnate Rami Unger to potentially acquire all of ZIM's shares. ZIM's Price Performance & Stock Valuation Over the past year, shares of ZIM have lost 26.7%, marginally outperforming the Zacks Transportation - Shipping industry but underperforming the Zacks Transportation sector. ZIM has performed better than fellow industry player Seanergy Maritime Holdings SHIP but lagged Frontline FRO in the same timeframe. Image Source: Zacks Investment Research One-Year Price Performance From a valuation perspective, ZIM is trading relatively cheap. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.30, way below the industry's 2.09. The company has a Value Score of A. ZIM's reading is lower than that of other shipping players like Frontline and Seanergy Maritime Holdings. While Frontline has a Value Score of B, Seanergy Maritime Holdings has a Value Score of A. Image Source: Zacks Investment Research Here's How to Play ZIM Stock Pre-Q2 Earnings Agreed that ZIM has quite a few factors working in its favor, including its shareholder-friendly approach and attractive valuation. However, the ongoing trade tension does not bode well for ZIM, as the company has significant exposure to both China and the United States. The shipping industry, of which ZIM is an integral part, is being hit by the ongoing trade tensions globally. The industry is responsible for a high majority of goods involved in world trade. Trade-related tensions have the potential to slow down goods transportation. Agreed that tariff woes are showing signs of easing, but in the absence of long-term trade deals, the scenario continues to be uncertain. We can safely conclude that investors should refrain from rushing to buy ZIM, which is facing quite a few challenges, ahead of its earnings release on Aug. 20. Instead, they should monitor the developments of the stock closely for a more appropriate entry point, as an erroneous and hasty decision could affect portfolio gains. ZIM's current Zacks Rank supports our thesis. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Frontline PLC (FRO) : Free Stock Analysis Report Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
