Palo Alto Networks, Inc. (PANW) earnings on June 2, 2026
More Palo Alto Networks, Inc. earnings
Prior outlook: Pessimistic Outcome: Accurate
Palo Alto Networks' stock dropped significantly after earnings, falling despite analysts raising price targets. The market reacted negatively, likely due to the stock's prior sharp rise.
PANW price around the earnings
271.29
Change: -8.7%
2026-06-04, 00:00 UTC
- Price: green if it ends above the starting price; red if it ends below
- Start of the measured window
- End of the measured window
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- Starting price
Prior thesis
Prior outlook: Pessimistic Outcome: Accurate
- Thesis published
Analysts expect price drop despite strong past performance.
Despite a history of strong earnings, the stock has seen a significant rally, pushing it into overbought territory. Analysts are projecting a notable drop in price, suggesting potential risks outweigh the positive past performance.
Context analyzed before publication
- Summary
- Analysts point to a pessimistic scenario despite strong past performance.
- Reasoning
- Despite a history of strong earnings, the stock has seen a significant rally, pushing it into overbought territory. Analysts point to a pessimistic scenario, noting that potential risks may outweigh the positive past performance.
- Playbook
- The extreme rally and analyst concerns point to a scenario where caution may be warranted. The current price may not be sustainable given the projected downside.
- Trend
- Analysts point to a pessimistic scenario despite strong past beats.
Analysts
Drivers
-
Analysts
Negative
The average analyst price target suggests a pessimistic scenario of over 20% from the current price. Institutional investors appear to be positioning for a decline.
Evidence
- Analyst consensus
- Buy
- Consensus average (1-5)
- 1.59
- Analysts covering the stock
- 48
- Average price target
- 234.48
- Lowest price target
- 114
- Highest price target
- 320
- Upside to price target
- -20.8%
- Quarterly earnings growth
- 61.8%
- Revenue growth
- 14.9%
- Forward EPS
- 3.98
- Trailing EPS
- 1.8
- Analyst moves in the last 60 days
- 10
- Strong buy: 10
- Buy: 34
- Hold: 9
- Sell: 1
- Strong sell: 0
- Strong buy
- 10
- Buy
- 34
- Hold
- 9
- Sell
- 1
- Strong sell
- 0
- June 1, 2026 · JP Morgan: Maintains rating (Overweight → Overweight)
- June 1, 2026 · Baird: Maintains rating (Outperform → Outperform)
- May 29, 2026 · Jefferies: Maintains rating (Buy → Buy)
- May 27, 2026 · Benchmark: Maintains rating (Buy → Buy)
- May 27, 2026 · Wedbush: Maintains rating (Outperform → Outperform)
- May 26, 2026 · BTIG: Maintains rating (Buy → Buy)
- May 21, 2026 · Wells Fargo: Maintains rating (Overweight → Overweight)
- May 20, 2026 · Morgan Stanley: Maintains rating (Overweight → Overweight)
- May 20, 2026 · Stifel: Maintains rating (Buy → Buy)
- May 19, 2026 · Truist Securities: Maintains rating (Buy → Buy)
News and sentiment
Drivers
-
News & sentiment
Positive
Positive news regarding AI's impact on cybersecurity is fueling the stock's rally. Recent media coverage has been favorable.
Evidence
Sentiment
- Sentiment
- Constructive
- Mention volume
- Low
- Normalized volume
- 33%
News
Sources (7)
- 'A Second ChatGPT-Like Moment' May Be Fueling Palo Alto's Rally — Benzinga
- AI Is Making Hackers Smarter — And Palo Alto And CrowdStrike Richer — Benzinga
- Palo Alto Networks to Report Fiscal Third Quarter Results; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — Benzinga
- Dollar General, Palo Alto And 3 Stocks To Watch Heading Into Tuesday — Benzinga
- Earnings Volatility Watch: 10 Stocks Set For Big Moves This Week, From Nuclear Power To Whiskey Maker — Benzinga
- JP Morgan Maintains Overweight on Palo Alto Networks, Raises Price Target to $300 — Benzinga
- Baird Maintains Outperform on Palo Alto Networks, Raises Price Target to $300 — Benzinga
Technicals
Drivers
-
Technical
Negative
The stock has experienced very strong price increases recently, indicating it may be overextended. It is approaching a significant resistance level.
Evidence
- Average true range (ATR)
- 4.6%
- Distance to 52-week high
- -2.3%
- 14-day change (14d)
- +40.7%
- 30-day change (30d)
- +79.1%
- 30-day relative strength
- +79.1%
- Benchmark change (0d)
- +0.0%
- Nearest support
- 283.41
- Nearest resistance
- 302.87
- Volume accumulation ratio (14d / 46d)
- 2.86
Trends
Drivers
-
Macro & trends
Positive
Increased spending on cybersecurity, driven by advancements in AI, is directly benefiting companies like this one.
Evidence
- Average earnings surprise
- +5.6%
- February 17, 2026: actual EPS 1.03 vs estimate 0.94 (surprise +9.9%)
- November 19, 2025: actual EPS 0.93 vs estimate 0.89 (surprise +4.4%)
- August 18, 2025: actual EPS 0.95 vs estimate 0.89 (surprise +7.3%)
- May 20, 2025: actual EPS 0.37 vs estimate 0.37 (surprise +1.0%)
Expected move
Drivers
-
Past earnings
Positive
The company has a strong recent record of beating earnings expectations in the past. Recent earnings surprises have averaged over 5%.
There is no implied-move data available for this event.
Reactions over its last 19 earnings
- Median move
- 6.9%
- 75th percentile move
- 10.9%
- 90th percentile move
- 15.5%
- Up / down moves
- 12 / 7
- Average up move
- +8.0%
- Average down move
- -8.6%
Monitoring and close
What Palo Alto Networks, Inc. reported
There is no monitoring data available for this event.
Pre-market second reading after the results
There is no second reading available for this event.
How the stock reacted
- Outcome
- Accurate
- Consolidated
- -5.6%
- Max favorable move (MFE)
- 7.2%
- Max adverse move (MAE)
- 14.1%