Palo Alto Networks Cuts Fiscal EPS to $3.65–3.70, Raises Revenue Outlook to $11.28–11.31B
Palo Alto Networks reported Q2 EPS of $1.03 on $2.59 billion revenue, beating estimates of $0.94 and $2.58 billion but cut full-year EPS guidance to $3.65–3.70 from $3.80–3.90, sending shares down 7%. The company raised its fiscal 2026 revenue forecast to $11.28–11.31 billion and projected Q3 revenue near $2.94 billion.
1. Q2 2026 Results
Palo Alto delivered EPS of $1.03 and revenue of $2.59 billion in fiscal Q2 2026, surpassing analyst expectations of $0.94 and $2.58 billion. This performance reflected strength in its AI-powered network security and cloud platform offerings.
2. Full-Year EPS Guidance Cut
The company lowered its fiscal 2026 EPS outlook to a range of $3.65–3.70 from $3.80–3.90, below the $3.87 consensus estimate. The revised guidance prompted a more than 7% decline in share price during after-hours trading.
3. Raised Fiscal 2026 Revenue Forecast
Palo Alto increased its full-year revenue forecast to $11.28–11.31 billion from $10.50–10.54 billion, exceeding previous expectations. The upward revision underscores management’s confidence in continued enterprise spending on cybersecurity solutions.
4. Q3 Outlook and CyberArk Acquisition
For fiscal Q3, the company forecast EPS of $0.78–0.80 on revenue between $2.941–2.945 billion, below analyst estimates. Palo Alto also completed its $25 billion CyberArk acquisition and announced plans for a dual listing on the Tel Aviv Stock Exchange.