Palo Alto Networks IncQ2 earnings beat but stock plunged 10.5% on high expectations, with guidance mixed relative to estimates.

Palo Alto Networks shares fell 10.5% in afternoon trading after the company reported second-quarter fiscal 2026 earnings that, while beating estimates, failed to impress Wall Street. Revenue came in at $3.41 billion, up 34.4% year over year and a 1.7% beat, while adjusted earnings per share of $1.02 topped expectations by 4.4%. The company guided next quarter's sales to $3.31 billion at the midpoint, above analyst estimates of $3.21 billion, and projected fiscal 2027 adjusted EPS of $4.18, beating estimates by 1.6%. CEO Nikesh Arora attributed the performance to platformization and urgency around AI threats, but high expectations for cybersecurity incumbents weighed on the stock.
Palo Alto Networks IncQ2 earnings beat but stock plunged 10.5% on high expectations, with guidance mixed relative to estimates.