From Financial Modeling Prep: 2025-02-14 12:25:00

Palo Alto Networks (NASDAQ:PANW) shares fell over 4% today after issuing a lower-than-expected income forecast for the current quarter, despite a strong second-quarter performance.

The cybersecurity firm projects adjusted earnings per share of $0.76 to $0.77 for Q3, slightly below analyst expectations of $0.78. Revenue is expected to grow 14% to 15% year-over-year, reaching $2.26 billion to $2.29 billion.

In Q2, Palo Alto reported revenue of $2.26 billion, beating the $2.24 billion forecast, with adjusted EPS at $0.81, just below the $0.82 consensus.

CEO Nikesh Arora credited the company’s growth to increased demand for cybersecurity solutions, driven by AI adoption and rising cyber threats. The “platformization” strategy has also been a key growth driver.

Despite strong demand for AI-driven security, investors reacted negatively to the slightly weaker Q3 guidance, causing a stock decline.



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