Palo Alto Networks (NASDAQ:PANW) is a leading cybersecurity company known for its innovative security solutions. The company offers a range of products and services, including firewalls, cloud security, and threat intelligence. As a key player in the cybersecurity industry, Palo Alto Networks competes with other major firms like Cisco and Fortinet.
As Palo Alto Networks prepares to release its quarterly earnings on November 19, 2025, Wall Street analysts are estimating an EPS of $0.89 and revenue of $2.46 billion. This comes amid a recent decline in the stock price, which has dropped from a high of $223 in October to $205. The upcoming financial results are expected to provide insights into the company's growth trajectory.
In the previous quarter, Palo Alto Networks reported $2.5 billion in revenue, marking a 16% year-over-year increase. This growth was driven by a shift from hardware to subscription and service-based offerings. The company's backlog, or remaining performance obligations, grew to $15.8 billion, while the annual recurring revenue for next-generation security surged by 32% to $5.6 billion.
Investors will be closely watching the progress in subscription and recurring revenue offerings in the upcoming earnings report. Additionally, commentary on competitive pressures, particularly in identity security and secure access service edge (SASE), will be of interest as the company faces increasing competition from rivals.
Institutional investors have been adjusting their positions in Palo Alto Networks. Banco Bilbao Vizcaya Argentaria S.A. reduced its holdings by 0.5%, while Connor Clark and Lunn Investment Management Ltd. acquired a new stake valued at $261,000. Strive Asset Management LLC increased its stake by 16.6%, now holding 2,099 shares valued at $358,000.
