NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-08-31
Reading PANW? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Warn: Primary pillar under pressure — EPS guidance of $3.77 to $3.79 for FY 2026: EPS guidance $3.78 vs target $3.77-$3.79.
Palo Alto Networks grows revenue about 22% to 23% in FY 2026. Profit margins stay near 30%. The company expands AI-driven cybersecurity partnerships. Free cash flow remains strong near 38%.
Earnings per share fell sharply in Q3 2026, showing profit challenges. Guidance was cut despite revenue beats. The stock trades at a very high price-to-earnings ratio over 100.
The market prices in about 28% revenue growth and values the stock 23% above our fair value near $276. Our fair value is 14% below the Street median, reflecting cautious optimism on growth and margins.
Breaks if: EPS falls below $3.50 in FY 2026
Maintain EPS guidance of $3.77 to $3.79 for the fiscal year 2026.
Stated in 3 of last 3 quarters. EPS was -$0.22 in 2026-Q3, down from $0.61 in 2026-Q2, indicating challenges in meeting the FY 2026 EPS guidance of $3.77 to $3.79. The trajectory shows mixed progress.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth. The current thesis state is intact, but there are mixed signals regarding profitability and management execution.
The market currently prices PANW at an expensive valuation compared to peers, with a notable expectations gap. This suggests that investors are anticipating strong performance, but there may be concerns about the sustainability of this growth given recent challenges.
Management has set ambitious revenue growth targets of 22% to 23% for FY 2026, and recent results show progress towards this goal. However, challenges in earnings per share and operating margins indicate a mixed fundamental outlook.
The thesis hinges on the performance of sector bellwethers like MSFT, ORCL, and PLTR, which could influence PANW's trajectory. Additionally, any guidance cuts from PANW could negatively impact investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the improved outlook. Revenue growth is expected to be 22% to 23% for FY 2026. There are no new threats impacting the thesis. Positive sentiment in the cybersecurity sector also boosts expectations.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.77 to $3.79.”
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.65 to $3.70.”
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.80 to $3.90.”
Breaks if: Free cash flow yield falls below 30% in FY 2026
Breaks if: Operating margin falls below 25% in FY 2026
Breaks if: YoY revenue growth falls below 15% in FY 2026
Achieve revenue growth of 22% to 23% for the fiscal year 2026.
Stated in 3 of last 3 quarters. Revenue grew from $2.25B in 2025-Q2 to $3.00B in 2026-Q3, indicating progress towards the FY 2026 revenue growth target of 22% to 23%. The trajectory is delivering on expectations.
“For FY 2026, we expect: ... Total revenue in the range of $11.415 billion to $11.425 billion.”
“For FY 2026, we expect: ... Total revenue in the range of $11.28 billion to $11.31 billion, representing year-over-year growth of 22% to 23%.”
“For FY 2026, we expect: ... Total revenue in the range of $10.50 billion to $10.54 billion, representing year-over-year growth of 14%.”
Over the next 1 to 3 years, PANW's performance will depend on its ability to navigate profitability challenges while maintaining revenue growth. Not investment advice.
