Palo Alto Networks’ shares took a hit on Tuesday evening despite the company surpassing earnings and revenue expectations for its fiscal third quarter. The cybersecurity firm reported a 15% year-over-year revenue increase to $2.29 billion, with adjusted earnings per share rising 21% to 80 cents. Although expectations were high, the stock dropped—raising questions about investor sentiment.
Key Points
- Palo Alto reported earnings of $2.29 billion, beating estimates of $2.28 billion.
- Adjusted EPS was 80 cents, surpassing the 77-cent forecast.
- The company cited a strong customer adoption of its next-gen security products, reaching $5 billion in annual recurring revenue (ARR).
- Despite solid results, the stock fell nearly 4% in after-hours trading due to unchanged full-year outlooks.
- The firm continues to focus on consolidating cybersecurity products to enhance sales and security outcomes.
Why should I read this?
If you’ve got an eye on tech stocks or cybersecurity, this article is a must-read. Palo Alto is making waves in the industry, and understanding the reasons for the share price drop—even after a stellar earnings report—could give you a leg-up in your investment decisions. Seriously, we’ve done the legwork for you on this one.