Preview: Palo Alto Slides Ahead Of Report With Ai: driven cybersecurity demand in focus

Palo Alto Networks

01/09/2026 18:00

** Shares of Palo Alto Networks PANW.O sliding 6.1% on Tues to $358.82 heading into qtrly earnings due after the bell, with investors looking for updates on AI-driven security spending
** Seller of cybersecurity solutions seen posting fiscal Q4 rev growth of 32% yr/yr to $3.35 bln and adj EPS of $0.98, compared to $0.95 a yr-ago, per LSEG data
** Santa Clara, California-based PANW in June boosted its annual rev and profit forecasts on strong AI cybersecurity demand as enterprises increased spending amid a rising threat landscape
** Even with the fall, PANW has surged ~95% YTD, far outperforming Nasdaq's .IXIC ~12.5% advance; stock just ~10% below Aug 13 record intraday high of $398.88
** Stock recently traded at 90 times fwd earnings vs its five-year avg of 53, suggesting a rich valuation
** Avg rating of 57 analysts is "buy"; median PT of $380 up from $335 a month ago and $232.50 on June 1

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))