Palo Alto Networks Guides $2.57–2.59B Q2 Revenue, Eyes Agentic AI Acquisition
Analysts forecast Palo Alto Networks to post Q2 revenue of $2.58 billion and EPS of $0.76, with guidance of $2.57–2.59 billion revenue and $0.93–0.95 EPS. The company’s acquisition of agentic endpoint security firm Koi and its 7.68% weight in the First Trust Nasdaq Cybersecurity ETF could drive ETF performance.
1. Q2 Earnings Estimates
Palo Alto Networks is projected to report Q2 revenue of $2.58 billion, up from $2.26 billion a year ago, and EPS of $0.76 versus $0.81. Guidance calls for revenue of $2.57–2.59 billion and EPS of $0.93–0.95.
2. Analyst Price Target Revisions
Mizuho, BTIG, DA Davidson, JPMorgan and Barclays all maintained buy or outperform ratings but lowered price targets to between $200 and $225 per share, reflecting cautious sentiment ahead of the quarterly results.
3. Koi Acquisition and AI Endpoint Security
The company agreed to acquire Koi, an agentic endpoint security firm, to address AI-driven threat vectors and close a new security blind spot. It also recently completed purchases of Chronosphere and CyberArk to bolster its AI-era security offerings.
4. ETF Exposure and Stock Impact
Palo Alto Networks represents 7.68% of the First Trust Nasdaq Cybersecurity ETF’s assets, making its earnings outcome and strategic moves a significant driver of the ETF’s overall performance.