Palo Alto Networks Inc (PANW) is in the spotlight on Monday as investors eagerly await the company’s upcoming earnings report. Here’s what to know before the results are released after market close.
Analysts are expecting a strong quarter from Palo Alto, forecasting earnings of $1.41 per share on revenue of $2.162 billion. The company has exceeded expectations on both the top and bottom lines for the past three quarters, showcasing its continued growth and success.
In its most recent quarter, Palo Alto reported a 15% year-over-year increase in revenue and a 23% jump in remaining performance obligations. The company’s guidance for the fourth quarter anticipates revenue between $2.15 billion and $2.17 billion, with earnings per share expected to be in the range of $1.40 to $1.42.
“We are pleased with the enthusiastic response to platformization from our customers in Q3. Platformization is a long-term strategy that addresses the increasing sophistication and volume of threats, and the need for AI-infused security outcomes,” said Chairman and CEO Nikesh Arora.
Analysts remain optimistic about Palo Alto’s prospects. Rosenblatt analyst Catharine Trebnick maintained a Neutral rating but raised the price target from $300 to $345. Several other analysts have also increased their price targets, including Wedbush, Baird, JPMorgan, Citigroup, Scotiabank, UBS, and Stifel.
In pre-market trading, PANW shares were up 2.02% at $340.87, reflecting investor confidence ahead of the earnings announcement.
This strong performance is likely driven by the company’s focus on platformization and its ability to deliver innovative solutions that address the evolving cybersecurity landscape. Investors will be closely watching the earnings report for insights into the company’s future growth trajectory and its position in the competitive cybersecurity market.
