Palo Alto (PANW) Loses 6.8% as Impressive Earnings Priced In

We precocious published 10 Losing Stocks successful an Otherwise Optimistic Market. Palo Alto Networks Inc. (NASDAQ:PANW) was 1 of the worst performers connected Wednesday.

Palo Alto tumbled by 6.82 percent connected Wednesday to adjacent astatine $152.35 apiece, arsenic investors appeared to person already priced successful a beardown net show successful the 2nd 4th of fiscal twelvemonth 2026 anterior to the authoritative results.

In an updated report, Palo Alto Networks Inc. (NASDAQ:PANW) said that nett income successful the 2nd 4th ending December 31 accrued by 62 percent to $432 cardinal from $267 cardinal successful the aforesaid play a twelvemonth earlier. Total revenues jumped by 15 percent to $2.59 cardinal from $2.26 cardinal year-on-year.

In the six-month period, nett income accrued by 24 percent to $766 cardinal from $618 million, portion revenues jumped by 15 percent to $5.07 cardinal from $4.4 billion.

Copyright: daviles / 123RF Stock Photo

“We saw continued spot successful platformizations, a inclination that is accelerating owed to AI—customers are keen to some modernize and normalize their cybersecurity stack, aligning them to our approach. We besides saw dependable and beardown adoption of AI security, which we expect volition beryllium a semipermanent trend,” said Palo Alto Networks Inc. (NASDAQ:PANW) Chairman and CEO Nikesh Arora.

Looking ahead, Palo Alto Networks Inc. (NASDAQ:PANW) is targeting revenues successful the scope of $$11.28 cardinal to $11.31 billion, representing year-on-year maturation of 22 to 23 percent. Diluted non-GAAP nett income per stock is besides pegged astatine $3.65 to $3.70.

For the 3rd 4th ending March, full revenues are projected astatine $2.941 cardinal to $2.945 billion, oregon an implied maturation of 28 to 29 percent. Diluted non-GAAP EPS is expected astatine $0.78 to $0.80.

While we admit the imaginable of PANW arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.