Palo Alto Networks (PANW) to Report Earnings Tomorrow: What to Expect

Cybersecurity provider Palo Alto Networks (NASDAQ:PANW) is set to report earnings tomorrow afternoon. Here’s what to expect.

In the most recent quarter, Palo Alto Networks reported revenue of $1.88 billion, up 20.1% year-over-year, beating analysts’ revenue expectations by 1.9%. It was a mixed quarter for the company, with full-year revenue forecasts missing analyst estimates. On the other hand, revenue and EPS exceeded expectations this quarter, helped by better-than-expected ARR (annual recurring revenue) and cRPO (calculated remaining performance obligations).

Will buying or selling Palo Alto Networks impact earnings? Read our full analysis here, it’s free.

Analysts expect Palo Alto Networks’ revenue to grow 19.1% year-over-year to $1.97 billion this quarter, a slowdown from the 25.7% year-over-year revenue growth the company reported this year same quarter of last year. Adjusted earnings per share are expected to be $1.30.

Most analysts covering the company have reaffirmed their estimates over the past thirty days, suggesting they expect the company to maintain its earnings trajectory. The company has missed Wall Street revenue estimates just once over the past two years and has beaten expectations by an average of 1%.

Looking at Palo Alto Networks’ competitors in the cybersecurity segment, some of them have already announced their second-quarter results, which gives us a hint of what to expect. Varonis reported revenue growth of 8.1% year over year, beating analyst estimates by 1.6%, while Qualys reported revenue growth of 10.5% year over year, missing analyst estimates by 0%. Varonis saw a 2.7% increase in earnings, while Qualys fell 4.3%.

Read our full analysis of the Varonis results here and the Qualys results here.

Cybersecurity investors are in a positive mood, with shares up an average of 2.9% over the past month. Meanwhile, Palo Alto Networks is up 6.3% and heading toward profits, with analysts targeting $357 versus a share price of $367.50.

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