Palo Alto Networks Q4 results expected to set stage for growth in fiscal 2026: Wedbush.

Palo Alto Networks is set to report Q4 results, with Wedbush Securities expecting the figures to set the stage for continued growth in fiscal 2026. The company is considered one of Wedbush's favorite cybersecurity stocks, with a strong position in the market. The report is expected to showcase Palo Alto's continued growth, making it a promising investment opportunity.

Palo Alto Networks (NASDAQ: PANW) is set to report its fiscal fourth-quarter (Q4) earnings after the close of trading, with Wedbush Securities expecting the quarterly figures to set the stage for continued growth in fiscal 2026. The company is considered one of Wedbush's favorite cybersecurity stocks, with a strong position in the market. The report is expected to showcase Palo Alto's continued growth, making it a promising investment opportunity.

Analysts are focusing on how management will frame its outlook for fiscal 2026 against a mixed backdrop for the cybersecurity sector. Jefferies analysts expect the company to meet Q4 targets of $2.5 billion in revenue, 19% to 20% growth in remaining performance obligations (RPO), and $5.5 billion annual recurring revenue (ARR) [1]. However, they caution that the market's attention will be on the fiscal 2026 forecast. The firm sees consensus free cash flow margin expectations of 37.4% as achievable but views revenue growth projections of about 14% year over year as carrying more risk. Jefferies trimmed their fiscal 2026 revenue estimate by 50 basis points to 13.4% growth, citing subscription revenue pressures recently reported by Fortinet and Check Point.

UBS analysts view the setup going into the quarter as less demanding after investor concerns earlier this year about the fiscal 2026 outlook and a negative market reaction to the CyberArk acquisition [2]. They maintained their 'Neutral' rating and lowered their price target to $185 from $200. The firm noted that the CyberArk transaction has mixed feedback but still better than sentiment toward some peers. They see potential for greater investor confidence if management offers more detail on integration plans, synergies, and the role of its XSIAM security analytics platform in driving ARR growth.

Evercore ISI has reiterated an Outperform rating on Palo Alto Networks with a price target of $220.00 ahead of the company’s upcoming earnings report [3]. The research firm expects investors to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance, with less emphasis on the pending Cyberark acquisition. Evercore ISI has reduced its fiscal year 2026 revenue growth forecast from 13.7% to 12.3%.

Shares of Palo Alto traded up 4.3% at $175 on Tuesday afternoon, reflecting investor optimism ahead of the earnings report.

References:
[1] https://www.proactiveinvestors.com/companies/news/1076570/palo-alto-set-to-deliver-q4-beat-with-investors-focused-on-guidance-amid-cyberark-deal-fallout-1076570.html
[2] https://finance.yahoo.com/news/palo-alto-networks-panw-earnings-140002380.html
[3] https://www.investing.com/news/analyst-ratings/palo-alto-networks-stock-rating-reiterated-at-outperform-by-evercore-isi-93CH-4184578