TLDR
- Palo Alto Networks reports Q3 FY26 earnings on June 2, after market close
- Wall Street expects revenue of $2.94 billion, up 28% year-over-year
- EPS forecast is $0.79, roughly flat versus the same quarter last year
- Options traders are pricing in a ~5.5% move in PANW stock post-earnings
- PANW stock is up 52.4% year-to-date and carries a Strong Buy consensus from 23 analysts
Palo Alto Networks (PANW) stock is trading at $281.25, up over 52% year-to-date, heading into its fiscal Q3 FY26 earnings report on Tuesday, June 2, after market close.
Palo Alto Networks, Inc., PANW
Wall Street is expecting a strong quarter. Revenue is projected to come in at $2.94 billion, which would represent growth of more than 28% year-over-year. That’s a step up from the 15.3% growth the company posted in the same quarter a year ago.
EPS is forecast at $0.79 for the quarter — roughly flat compared to the prior-year period.
Beyond the headline numbers, the company is expected to report nearly $18 billion in remaining performance obligations, a key indicator of future contracted revenue.
Palo Alto beat analyst expectations last quarter, reporting revenues of $2.59 billion — up 14.9% year-on-year — along with a solid beat on EBITDA and stronger-than-expected guidance.
Most analysts covering the stock have kept their estimates steady over the past 30 days, suggesting they expect the company to stay on track.
What Options Traders Are Pricing In
Options markets are implying a move of around 5.5% in either direction following the earnings release. That’s slightly below Palo Alto’s average post-earnings move of 6% over the past four quarters.
The implied volatility suggests traders are watching this report closely, but aren’t bracing for an outsized swing.
For context, cybersecurity peer Zscaler (ZS) dropped 31.5% after its most recent earnings despite posting 25.4% revenue growth. Varonis Systems, on the other hand, rose 7.3% after beating estimates.
That contrast shows the market isn’t just rewarding growth — execution and guidance matter just as much.
Analyst Ratings and Price Targets
Wall Street holds a Strong Buy consensus on PANW stock, based on 23 unanimous Buy ratings.
The average analyst price target is $260.86 — which, notably, sits about 7.4% below the current trading price of $281.25. That gap suggests the stock has run ahead of where most analysts had it pegged.
A separate average price target of $232.86 has also been cited, pointing to a range of views on where the stock goes from here.
Key areas investors will be watching Tuesday: customer additions, new contract wins, margin trends, and how management discusses AI’s role in driving security demand.
The broader cybersecurity sector has been in favor lately. The group is up roughly 9% on average over the past month, with PANW leading the pack.
Palo Alto’s “platformization” strategy — pushing customers to consolidate their security stack under one vendor — remains a central part of the growth thesis heading into the print.
Q3 FY26 earnings drop Tuesday, June 2, after the closing bell.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
