Palo Alto Stock Is Facing Selling Pressure Wednesday: What's Going On?

Palo Alto Networks Inc PANW shares are moving lower Wednesday on the heels of the company’s fiscal third-quarter financial results. Multiple analysts also weighed in on the stock following the print.

What Happened: Palo Alto reported third-quarter revenue of $2.29 billion, beating estimates of $2.28 billion, and adjusted earnings per share of 80 cents, beating estimates of 77 cents, according to Benzinga Pro.

Total revenue increased 15% on a year-over-year basis as next-generation security annual recurring revenue increased 34% year-over-year to $5.1 billion. The company had $13.5 billion of remaining performance obligations at quarter’s end, up 19% year-over-year.

“We again delivered strong top-line results within our profitable growth framework, as we continue to see our business scale well across the P&L. We look forward to executing against our targets as we close fiscal year 2025,” said Dipak Golechha, CFO of Palo Alto Networks.

Palo Alto guided for fiscal fourth-quarter revenue of $2.49 billion to $2.51 billion versus estimates of $2.5 billion, and adjusted earnings of 87 cents to 89 cents per share versus estimates of 86 cents per share, per Benzinga Pro.

The company raised the low end of its full-year revenue outlook from a range of $9.14 billion to $9.19 billion to a new range of $9.17 billion to $9.19 billion. Palo Alto also raised its full-year adjusted earnings forecast from $3.18 to $3.24 per share to a new range of $3.26 to $3.28 per share.

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Analyst Changes:

• Bernstein analyst Peter Weed maintained Palo Alto with an Outperform and lowered the price target from $229 to $225.

• Keybanc analyst Eric Heath reiterated Palo Alto with an Overweight and a price target of $220.

• Guggenheim analyst John Difucci reiterated Palo Alto with a Sell and a price target of $130.

• TD Securities analyst Shaul Eyal reiterated Palo Alto with a Buy and price target of $230.

PANW Price Action: Palo Alto shares were down 6.71% at $181.11 at the time of publication Wednesday, according to Benzinga Pro.

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