Q2 2025 Earnings Forecast for Palo Alto Networks Issued by DA Davidson

Palo Alto Networks, Inc. (NASDAQ:PANW – Free Report) recently had its Q2 2025 earnings per share estimates released by equities research firm DA Davidson. In a note to investors dated December 17, DA Davidson analyst R. Kessinger anticipated that the network technology company would report earnings of $0.42 per share for the quarter. This is notable as the consensus estimate for Palo Alto Networks for the current full fiscal year stands at $3.49 per share. Additionally, DA Davidson projected earnings of $2.14 per share for Palo Alto Networks in FY2026.

A number of other analysts have also recently updated their reports on PANW. For instance, KeyCorp raised its price target for Palo Alto Networks from $200.00 to $217.50, assigning the stock an 'overweight' rating in a report released on October 18. Similarly, Morgan Stanley increased its target price from $195.00 to $210.50, also giving the company an 'overweight' rating in a note published on October 11. Wells Fargo & Company adjusted its price target from $208.00 to $225.00 while maintaining an 'overweight' rating on November 21. BTIG Research upped its price objective on Palo Alto Networks from $197.50 to $207.00 and assigned it a 'buy' rating on the same day. Northland Securities also reiterated a 'market perform' rating with a new price objective of $185.00, an increase from a previous target of $175.00, reported on November 21.

The takeaway from these changes is that although two analysts rated the stock with a sell, nine recommended holding it, thirty-two supported a buy, and one gave a strong buy rating. Current data from MarketBeat indicates that PANW holds an average rating of 'Moderate Buy', with a consensus price target hovering around $201.40.

Palo Alto Networks Stock Performance

As of Thursday, PANW shares opened at $189.36. The company's stock has a 50-day moving average of $191.89 and a two-hundred day moving average of $175.31, contributing to its market capitalization of $124.26 billion. The stock exhibits a price-to-earnings ratio of 24.66 and a PEG ratio of 5.75, with a beta of 1.12. Over the past year, Palo Alto Networks reported a low of $130.04 and a high of $207.24.

Palo Alto Networks announced its latest earnings results on November 20, where it reported earnings of $0.78 per share, exceeding the expected consensus of $0.74 by $0.04. The revenue for that quarter reached $2.14 billion, slightly outpacing estimates of $2.12 billion. With a notable net margin of 32.99% and a return on equity of 23.36%, the revenue represented a 13.9% increase year-over-year compared to the same period last year, where the firm earned $0.32 per share.

Institutional Investment Insights

Recent activities among institutional investors indicate growing interest in Palo Alto Networks. Legacy Wealth Management LLC MS increased its stake by 0.7% during the third quarter, acquiring an additional 182 shares to reach a total of 24,982 shares valued at approximately $8.54 million. FFG Partners LLC also boosted its holdings by 1.2%, now owning 17,359 shares worth around $5.93 million after acquiring an additional 201 shares. Oddo BHF Asset Management Sas made a new investment estimated at $9.39 million in the same quarter, while Boulder Wealth Advisors LLC and Capasso Planning Partners LLC purchased new stakes valued at $214,000 and $219,000, respectively. Overall, institutional investors hold approximately 79.82% of PANW's shares.

Insider Trading Activity

In insider trading news, Palo Alto Networks EVP Nir Zuk sold 336,000 shares on November 25 for an average price of $193.70, totalling about $65.08 million. Following this sale, Zuk's holdings decreased by 8.44%, bringing his total share count to 3,643,516. CEO Nikesh Arora also sold 163,172 shares on October 10 at an average price of $184.00, amounting to around $30.02 million and representing an 11.65% reduction in his holdings, leaving him with approximately 1.24 million shares. During the previous quarter, company insiders sold a total of 571,172 shares valued at about $107.07 million, with insiders generally owning around 2.50% of the company’s stock.

Understanding Palo Alto Networks

Palo Alto Networks, Inc. specializes in providing cybersecurity solutions globally. The company’s product offerings include firewall appliances and software, as well as Panorama, a security management solution designed for comprehensive network security control presented as either a virtual or physical appliance. Furthermore, the company offers subscription services that cover areas such as threat prevention, malware protection, URL filtering, mobile device security, DNS security, IoT security, SaaS security APIs, threat intelligence, and data loss prevention.

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