Palo Alto Networks (NASDAQ:PANW) Updates Q2 2025 Earnings Guidance

Palo Alto Networks (NASDAQ:PANW) issued an update on its second quarter 2025 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 1.540-1.560 for the period, compared to the consensus earnings per share estimate of 1.550. The company issued revenue guidance of $2.2 billion-$2.3 billion, compared to the consensus revenue estimate of $2.2 billion. Palo Alto Networks also updated its FY 2025 guidance to 6.260-6.390 EPS.

Palo Alto Networks Stock Down 3.6 %

Shares of NASDAQ PANW opened at $383.36 on Friday. The company’s 50-day simple moving average is $364.32 and its 200-day simple moving average is $339.39. The firm has a market cap of $124.82 billion, a price-to-earnings ratio of 49.92, a price-to-earnings-growth ratio of 5.76 and a beta of 1.12. Palo Alto Networks has a 52-week low of $260.09 and a 52-week high of $408.53.

Palo Alto Networks shares are scheduled to split on the morning of Monday, December 16th. The 2-1 split was announced on Wednesday, November 20th. The newly created shares will be distributed to shareholders after the closing bell on Friday, December 13th.

Palo Alto Networks (NASDAQ:PANW) last posted its quarterly earnings results on Wednesday, November 20th. The network technology company reported $1.56 earnings per share for the quarter, topping the consensus estimate of $1.48 by $0.08. The firm had revenue of $2.14 billion for the quarter, compared to the consensus estimate of $2.12 billion. Palo Alto Networks had a net margin of 32.99% and a return on equity of 23.36%. The company’s revenue for the quarter was up 13.9% on a year-over-year basis. During the same period last year, the firm posted $0.63 earnings per share. Equities research analysts anticipate that Palo Alto Networks will post 3.57 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. KeyCorp lifted their target price on shares of Palo Alto Networks from $400.00 to $435.00 and gave the stock an “overweight” rating in a research note on Friday, October 18th. HSBC downgraded shares of Palo Alto Networks from a “hold” rating to a “reduce” rating and reduced their target price for the stock from $304.00 to $291.00 in a research note on Friday. Scotiabank lifted their target price on shares of Palo Alto Networks from $385.00 to $400.00 and gave the stock a “sector outperform” rating in a research note on Tuesday, August 20th. TD Cowen lifted their target price on shares of Palo Alto Networks from $400.00 to $420.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, JPMorgan Chase & Co. boosted their price target on shares of Palo Alto Networks from $387.00 to $449.00 and gave the company an “overweight” rating in a research note on Monday, November 18th. Two analysts have rated the stock with a sell rating, ten have given a hold rating, thirty-one have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $402.03.

Insider Transactions at Palo Alto Networks

In related news, CEO Nikesh Arora sold 81,586 shares of the stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $367.99, for a total value of $30,022,832.14. Following the sale, the chief executive officer now directly owns 618,715 shares of the company’s stock, valued at approximately $227,680,932.85. This represents a 11.65 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Lee Klarich sold 60,000 shares of the stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $344.98, for a total transaction of $20,698,800.00. Following the completion of the sale, the executive vice president now directly owns 159,009 shares in the company, valued at approximately $54,854,924.82. The trade was a 27.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 254,252 shares of company stock valued at $89,041,637 in the last ninety days. 2.50% of the stock is currently owned by company insiders.

About Palo Alto Networks

Palo Alto Networks, Inc provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention.