Palo Alto Networks, Inc.

(NASDAQ Global Select)
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Somewhat Bullish +35

Palo Alto Networks stock enters earnings with a narrow EPS bar

Acquisition Company update AI-generated analysis

πŸ“… Palo Alto Networks will report fiscal first-quarter results on November 18, 2026, following a webcast at 4:30 p.m. Eastern time.

πŸ’° The company guides fiscal Q1 revenue to $3.30 billion-$3.31 billion, marking a 33%-34% increase from the prior-year period.

πŸ“‰ Adjusted EPS is expected to reach $0.96-$0.98, representing a modest 4% increase compared to the 33%-34% revenue growth rate.

🀝 The CyberArk acquisition, valued at $25 billion and funded largely with shares, has increased the share count to approximately 818 million.

πŸ“ˆ NGS ARR is guided at $9.54 billion-$9.56 billion for the quarter, reflecting a substantial 63% year-over-year growth.

⚠️ Margin performance faces headwinds as cloud hosting costs are projected to grow faster than revenue during the fiscal year.

πŸ”­ The full-year fiscal 2027 outlook projects revenue between $14.1 billion and $14.2 billion with a 23%-24% growth rate.

πŸ“Š Analyst consensus estimates align closely with management guidance, pricing in $3.31 billion revenue and $0.97 adjusted EPS.

Bullish Signals
  • Palo Alto Networks projects strong fiscal first-quarter revenue growth of 33% to 34%, indicating continued market demand for its security solutions.
  • The company's Next-Generation Security Annual Recurring Revenue (NGS ARR) is expected to surge by 63% year-over-year to between $9.54 billion and $9.56 billion.
Risk Factors
  • Adjusted earnings per share growth of roughly 4% lags significantly behind the 33%-34% revenue growth rate due to share dilution from the CyberArk acquisition.
  • The company's share count has increased substantially to approximately 818 million, with a potential rise to 847 million by fiscal 2027, which weighs on per-share results.
Full Analysis
Palo Alto Networks is preparing to report its fiscal first-quarter results on November 18, 2026, with analysts focusing on a narrowing gap between robust revenue growth and per-share earnings. The company has guided revenue for the quarter to between $3.30 billion and $3.31 billion, representing a significant 33% to 34% increase year-over-year. However, adjusted earnings per share are expected to rise by only approximately 4%, reflecting the dilutive impact of recent acquisitions. The primary driver behind the divergence in growth rates is the integration of CyberArk, an identity-security firm acquired for $25 billion and funded largely with shares. This transaction has increased Palo Alto Networks' share count from roughly 668 million to about 818 million, with a potential rise to 847 million by fiscal 2027. Investors will scrutinize whether the company can maintain its full-year revenue outlook while managing the weight of this enlarged share base on per-share metrics. A critical metric for the upcoming earnings release is Next-Generation Security Annual Recurring Revenue (NGS ARR), which is guided at $9.54 billion to $9.56 billion, up 63% year-over-year. Management views hitting the top end of this range as essential evidence that the CyberArk integration is successfully contributing to platform expansion rather than merely inflating reported scale. Additionally, margin performance remains a key risk, with cloud hosting costs expected to grow faster than revenue during the fiscal year.