A Look at Palo Alto Networks's Upcoming Earnings Report

Palo Alto Networks (NASDAQ:PANW) is gearing up to announce its quarterly earnings on Tuesday, 2025-05-20. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Palo Alto Networks will report an earnings per share (EPS) of $0.77.

The announcement from Palo Alto Networks is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

The company's EPS beat by $0.03 in the last quarter, leading to a 0.92% drop in the share price on the following day.

Here's a look at Palo Alto Networks's past performance and the resulting price change:

Quarter	Q2 2025	Q1 2025	Q4 2024	Q3 2024
EPS Estimate	0.78	0.74	0.71	0.63
EPS Actual	0.81	0.78	0.76	0.66
Price Change %	-1.0%	1.0%	7.000000000000001%	-4.0%

Market Performance of Palo Alto Networks's Stock

Shares of Palo Alto Networks were trading at $192.98 as of May 16. Over the last 52-week period, shares are up 24.11%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Palo Alto Networks

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Palo Alto Networks.

The consensus rating for Palo Alto Networks is Buy, based on 12 analyst ratings. With an average one-year price target of $211.17, there's a potential 9.43% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of CrowdStrike Holdings, Fortinet and ServiceNow, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for CrowdStrike Holdings, with an average 1-year price target of $433.74, suggesting a potential 124.76% upside.
• Analysts currently favor an Neutral trajectory for Fortinet, with an average 1-year price target of $106.79, suggesting a potential 44.66% downside.
• Analysts currently favor an Outperform trajectory for ServiceNow, with an average 1-year price target of $1047.62, suggesting a potential 442.86% upside.

Key Findings: Peer Analysis Summary

The peer analysis summary presents essential metrics for CrowdStrike Holdings, Fortinet and ServiceNow, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Palo Alto Networks	Buy	14.29%	$1.66B	4.35%
CrowdStrike Holdings	Outperform	25.22%	$784.55M	-2.91%
Fortinet	Neutral	13.77%	$1.25B	25.08%
ServiceNow	Outperform	18.63%	$2.44B	4.66%

Key Takeaway:

Palo Alto Networks ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into Palo Alto Networks's Background

Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 80,000 enterprise customers across the world, including more than three fourths of the Global 2000.

Unraveling the Financial Story of Palo Alto Networks

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Palo Alto Networks displayed positive results in 3 months. As of 31 January, 2025, the company achieved a solid revenue growth rate of approximately 14.29%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Palo Alto Networks's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 11.84%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Palo Alto Networks's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.35%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.29%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.14.

To track all earnings releases for Palo Alto Networks visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.