Jim Cramer Discusses Palo Alto Networks’ (PANW) Earnings

Palo Alto Networks Inc. (NASDAQ:PANW) is simply a bundle institution that specializes successful providing cybersecurity solutions. Its shares are down by 23% implicit the past twelvemonth and by 18% year-to-date. The steadfast reported its net past week. The results saw Palo Alto Networks Inc. (NASDAQ:PANW) gain $432 cardinal successful nett income and $2.59 cardinal successful gross during the 2nd quarter. Cramer has been bullish connected cybersecurity stocks for much than a twelvemonth and repeatedly asserted that the firms basal to payment from a maturation successful request stemming from AI. As portion of his net merchandise comments, Palo Alto Networks Inc. (NASDAQ:PANW)’s CEO, Nikesh Arora, pointed retired that his customers were modernizing their bundle stack owed to AI. Arora added that his steadfast would besides velocity up AI integration into its merchandise offerings. Before the earnings, BTIG lowered Palo Alto Networks Inc. (NASDAQ:PANW)’s stock terms people to $200 from $248 and kept a Buy rating. Channel checks played a relation successful the coverage. Cramer mentioned talking to Arora pursuing the earnings:

“I talked to Nikesh and helium thinks that it’s a precise misunderstood quarter. That if you look astatine the 2 companies, the guidance for Palo Alto nett and Cyberark separately, retrieve they did a large Cyberark acquisition, it was really an increase. Okay, they were up individually of the forecast. Now a batch of radical fell good travel on, it’s turning into a headwind already. He volition reason powerfully that it is not. I volition hold with him that I don’t deliberation it’s this quarter. He talks astir if you’re lone 95% close with LLMs, evidently that’s not enough, you person to beryllium similar a 100% right. But radical are not buying what he’s selling this morning. They’re conscionable not buying it. I am.”

The CNBC TV big maintained his views astir AI and cybersecurity successful a tweet:

“I wholly get the demolition of SAAS and Enterprise bundle but the agents-which are unprotected- and the data, which they make overmuch much than humans, is unprotected, truthful one would beryllium raising numbers, pt, Crowdstrike, not lowering.”

Sands Capital Technology Innovators Fund besides mentioned Palo Alto Networks, Inc. (NASDAQ:PANW) successful its Q4 2025 capitalist letter:

“Within our planetary strategies, we ain respective leaders that we judge are well-positioned for this semipermanent demand. Palo Alto Networks, Inc. (NASDAQ:PANW) is evolving from a absorption connected web information to a broader, cloud-delivered level that helps customers unafraid analyzable hybrid environments.”