From Nasdaq:

Palo Alto Networks is a strong performer in the cybersecurity space, with revenues and profits showing consistent growth. The company is set to report Q2 2024 earnings, with shares rising 110% in the past year. Analysts expect another strong quarter, with the stock up 25% year to date, compared to a 5% rise in the S&P 500 index.

Wedbush Securities has raised Palo Alto Networks to Outperform, with a price target of $425, indicating a 15% potential premium. Despite concerns about valuation amid recent share price gains, the firm expects the company to deliver increased revenue and profits. Wall Street expects earnings of $1.16 per share on revenue of $1.84 billion for the last quarter.

Palo Alto Networks has positioned itself as a leader in cybersecurity, investing in three key platforms: its Zero Trust Platform, Code to Cloud Platform, and AI-driven Autonomous Security Ops Platform. In Q1, the company beat both revenue and earnings estimates, with a 20% year-over-year growth and a surge in annual recurring revenue by 53%. The company’s business mix shifted towards higher margin, recurring software revenues, which now accounts for 83% of total revenue. These results show strong growth trends which investors hope to see continue.

Palo Alto Networks is expected to benefit from its leadership position in key cybersecurity categories. The company is predicted to deliver more growth on both the top and bottom lines. For Q2 fiscal 2024, Wall Street expects the company to earn $1.16 per share on revenue of $1.84 billion, a significant increase from the previous year. The firm believes that Palo Alto will continue to thrive in this “Golden Age of Cybersecurity,” and its shares are expected to rise further.



Read more: Palo Alto Networks (PANW) Q2 2024 Earnings: What to Expect