Palo Alto Networks (PANW, $235.55) rallies on higher-than-expected fiscal Q2 earnings and $1 billion stock buyback plan
Palo Alto Networks reported better-than-expected earnings for the fiscal second quarter, and also announced a stock buyback program - leading to its shares jumping +11% in after-hours trading Tuesday.
The cybersecurity company raked in adjusted earnings of $1.51 per share in the three months ending January, beating analysts’ estimates of $1.22 per share (based on Refinitiv data). Quarterly revenue of $711.2 million came in higher compared to analysts’ expected $682 million ((based on Refinitiv data). That marks a +30% year-over-year surge in revenue for the quarter. Product revenues, grew +33% to $271.6 million, while those from services increased +29% to $439.6 million.
Palo Alto also announced that its board authorized up to $1 billion in share repurchases, and introduced its Cortex AI-based security platform.
The company is apparently gung-ho in bolstering its cloud solutions and cyber security business. Last week, it announced its $560 million acquisition of Demisto, a startup specializing in security orchestration, incident management and interactive investigation.
For the fiscal third quarter, Palo Alto projects adjusted earnings in the range of $1.23 to $1.25 per share. It expects revenue to be in the range of $697 million to $707 million for the quarter - that puts the midpoint at $702 million, which is higher than the $696.7 million FactSet estimate.
PANW sees its Stochastic Oscillator recovers from oversold territory
On October 20, 2025, the Stochastic Oscillator for PANW moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 50 instances where the indicator left the oversold zone. In of the 50 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in of 357 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 276 cases where PANW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for PANW moved out of overbought territory on October 09, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 20, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PANW as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PANW turned negative on October 14, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PANW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PANW broke above its upper Bollinger Band on October 08, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PANW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.315) is normal, around the industry mean (17.859). P/E Ratio (132.387) is within average values for comparable stocks, (157.278). Projected Growth (PEG Ratio) (1.889) is also within normal values, averaging (2.289). PANW has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.025). P/S Ratio (16.287) is also within normal values, averaging (107.836).
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General Information
a provider of network security solutions
Industry ComputerCommunications
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