Palo Alto Networks Stock Is Sliding Thursday: What's Going On?

Palo Alto Networks Inc PANW shares are trading lower Thursday after the company reported fiscal first-quarter financial results.

• Q1 Revenue: $1.88 billion beat estimates of $1.84 billion
• Q1 EPS: $1.38 beat estimates of $1.16

Revenues were up 20% year-over-year in the quarter. Remaining performance obligations grew 26% year-over-year.

"An unprecedented level of attacks is fueling strong demand in the cybersecurity market," said Nikesh Arora, chairman and CEO of Palo Alto Networks.

"We continue to execute on platformization as customers recognize the benefits we can provide in simplifying security architectures and driving better security outcomes."

Outlook: Palo Alto sees fiscal second-quarter revenue of $1.955 billion to $1.985 billion versus estimates of $1.97 billion. The company expects second-quarter adjusted earnings to be between $1.29 and $1.31 per share versus estimates of $1.25 per share. 

Palo Alto expects full-year 2024 revenue to be between $8.15 billion and $8.2 billion versus estimates of $8.18 billion. The company sees full-year earnings between $5.40 and $5.53 per share versus estimates of $5.33 per share. 

Following the print, Needham analyst Alex Henderson reiterated Palo Alto with a Buy and maintained a price target of $305. Raymond James analyst Adam Tindle maintained an Outperform rating and raised the price target from $250 to $260.

See Also: Why Software Solutions Company NICE Shares Are Rising Today

PANW Price Action: Palo Alto shares were down 6.71% at $239.01 at the time of publication, according to Benzinga Pro.

Photo: methodshop from Pixabay.