Palo Alto (PANW, $478.68) beats Zacks Consensus Estimates
Palo Alto Networks posted its third-quarter fiscal 2022 results, where earnings grew year-over-year and also surpassed Zacks Consensus Estimates. Revenues, too, topped expectations.
The cybersecurity company’s non-GAAP earnings rose +29.7% from the year-ago quarter to $1.79 per share, well above the Zacks Consensus Estimate of $1.67.
Palo Alto’s fiscal third-quarter revenues of $1.39 billion also surpassed the Zacks Consensus Estimate of $1.36 billion. The top line is +29% higher from the year-ago quarter.
Revenues from the company’s Product segment surged +22% year over year to $351.5 million (25.3% of total revenues). Subscription and support revenues grew +31.9% year over year to $1035.2 million (74.7% of total revenues).
Billings grew +40% to $1.80 billion.
Looking ahead, the company now projects fiscal 2022 revenues of $5.481-$5.501 billion, thereby implying growth of around 29% from the fiscal 2021. In its prior forecast, the expectation was $5.425 billion - $5.475 billion, which indicated year-over-year growth of 27-29%.
Total billings projection is now $7.106-$7.136 billion for fiscal 2022, indicating year-over-year increase of 30-31%. Prior estimates from the company was in the range of $6.80-$6.85 billion, implying a 25-26% increase from the year-ago quarter.
The company boosted its non-GAAP earnings forecast range to $7.43-$7.46 per share, vs. prior forecast of $7.23-$7.30 per share
It reaffirmed non-GAAP adjusted free cash flow margin forecast of 32-33%.
PANW's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for PANW turned positive on March 03, 2026. Looking at past instances where PANW's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PANW's RSI Oscillator exited the oversold zone, of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 04, 2026. You may want to consider a long position or call options on PANW as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PANW advanced for three days, in of 353 cases, the price rose further within the following month. The odds of a continued upward trend are .
PANW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
The Aroon Indicator for PANW entered a downward trend on March 05, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock slightly better than average.
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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 (14.514) is normal, around the industry mean (39.278). P/E Ratio (92.786) is within average values for comparable stocks, (141.892). Projected Growth (PEG Ratio) (2.170) is also within normal values, averaging (1.524). PANW has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.029). P/S Ratio (12.005) is also within normal values, averaging (74.883).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of network security solutions
Industry ComputerCommunications
Advertisement