Earnings Forecast for PANW: What to Expect?

Palo Alto Networks (NYSE:PANW) is set to report its earnings after the market closes today.

In the previous quarter, the cybersecurity leader met analysts’ revenue expectations, posting a 15.3% year-on-year increase to $1.98 billion. However, the quarter showed mixed results, with a slight decline in gross margin despite narrowly beating billings estimates.

For this quarter, analysts expect a 10.8% increase in revenue year-on-year, bringing it to $2.16 billion. This represents a slowdown from the 26% growth reported in the same quarter last year. Adjusted earnings per share are projected to be $1.41. Over the last month, most analysts have reaffirmed their estimates, indicating a consensus that Palo Alto Networks will likely stay on its current course.

Recent earnings reports from other companies in the cybersecurity sector offer additional insight. Varonis (NASDAQ:VRNS) achieved 12.9% revenue growth, beating expectations by 4.4%, while Rapid7 (NASDAQ:RPD) reported a 9.2% increase, exceeding estimates by 1.9%. Both companies saw significant stock price increases after their results, with Varonis up 14.7% and Rapid7 up 9.7%.

Given Palo Alto Networks’ consistent record of meeting or surpassing revenue expectations and the positive performances of its peers, the company seems well-positioned heading into this earnings report.