Palo Alto Networks Sets $2.58B Q2 Revenue Goal, Acquires Koi
Palo Alto Networks forecasts Q2 revenue of $2.58 billion, up from $2.26 billion year-on-year, and EPS of $0.76 versus $0.81 last year, while guiding $2.57–2.59 billion revenue and $0.93–0.95 EPS. The company has acquired agentic endpoint security firm Koi after closing Chronosphere and CyberArk deals.
1. Q2 Financial Estimates
Analysts project Q2 revenue of $2.58 billion versus $2.26 billion in the prior year and EPS of $0.76 compared with $0.81 a year ago. Company guidance calls for revenue between $2.57 and $2.59 billion and EPS of $0.93 to $0.95, reflecting optimism on post-acquisition synergies.
2. Strategic Acquisitions
Palo Alto Networks announced the acquisition of Koi, an agentic endpoint security specialist, to address emerging AI-driven threats. This follows January’s Chronosphere deal and February’s CyberArk closing, reinforcing the company’s push to become the data and security partner of choice in the AI era.
3. Investor Focus and Stock Slump
Shares have fallen over 22% in the past year as analysts trimmed price targets from as high as $248 to around $205. Investors will watch whether another earnings beat, strong ARR and RPO growth—both up more than 20% year-over-year—can restore confidence.