Palo Alto Networks (PANW) Soars 5.75% on Strong Earnings, Guidance

Palo Alto Networks' stock surged 5.75% in pre-market trading on August 19, 2025, driven by strong fiscal 2026 guidance and robust fourth-quarter earnings that exceeded market expectations.

Palo Alto Networks reported fiscal fourth-quarter earnings that surpassed estimates, with revenue meeting Wall Street targets. The company's fiscal 2026 guidance for Palo Alto stock came in above expectations, contributing to the positive market sentiment. In the earnings report, fiscal Q4 profit rose 27% to 95 cents on an adjusted basis, while revenue climbed 16% to $2.5 billion, including acquisitions. Annual recurring revenue (ARR) from subscription-based cloud computing products rose 32% to $5.6 billion, topping estimates of $5.551 billion.

For fiscal 2026, Palo Alto Networks expects revenue in a range of $10.47 billion to $10.52 billion, surpassing consensus estimates of $10.423 billion. The company's remaining performance obligations (RPO), which represent the total value of contracted revenue not yet recognized, rose 24% to $15.8 billion in fiscal Q4, exceeding estimates of $15.26 billion. In fiscal 2026, Palo Alto anticipates RPO of $18.65 billion, above estimates of $18.12 billion.

Palo Alto Networks has expanded its offerings beyond firewall network appliances through strategic acquisitions, building a comprehensive cloud-based security platform. The company's recent $25 billion acquisition of CyberArk is expected to close in 2026, adding an identity security platform to its portfolio. Despite initial concerns over organic growth following the acquisition announcement, the company's strong fiscal 2026 guidance has reassured investors.