NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-07-07
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Track PANW free→Palo Alto Networks grows revenue about 22% to 23% in FY 2026. Profit margins stay near 30%. The company expands AI-driven cybersecurity partnerships. Free cash flow remains strong near 38%.
Earnings per share fell sharply in Q3 2026, showing profit challenges. Guidance was cut despite revenue beats. The stock trades at a very high price-to-earnings ratio over 100.
The market prices in about 28% revenue growth and values the stock 23% above our fair value near $276. Our fair value is 14% below the Street median, reflecting cautious optimism on growth and margins.
Breaks if: EPS falls below $3.50 in FY 2026
Maintain EPS guidance of $3.77 to $3.79 for the fiscal year 2026.
Stated in 3 of last 3 quarters. EPS was -$0.22 in 2026-Q3, down from $0.61 in 2026-Q2, indicating challenges in meeting the FY 2026 EPS guidance of $3.77 to $3.79. The trajectory shows mixed progress.
Breaks if: Free cash flow yield falls below 30% in FY 2026
Breaks if: Operating margin falls below 25% in FY 2026
Breaks if: YoY revenue growth falls below 15% in FY 2026
Achieve revenue growth of 22% to 23% for the fiscal year 2026.
Stated in 3 of last 3 quarters. Revenue grew from $2.25B in 2025-Q2 to $3.00B in 2026-Q3, indicating progress towards the FY 2026 revenue growth target of 22% to 23%. The trajectory is delivering on expectations.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.77 to $3.79.”
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.65 to $3.70.”
“For FY 2026, we expect: ... Diluted non-GAAP net income per share in the range of $3.80 to $3.90.”
“For FY 2026, we expect: ... Total revenue in the range of $11.415 billion to $11.425 billion.”
“For FY 2026, we expect: ... Total revenue in the range of $11.28 billion to $11.31 billion, representing year-over-year growth of 22% to 23%.”
“For FY 2026, we expect: ... Total revenue in the range of $10.50 billion to $10.54 billion, representing year-over-year growth of 14%.”
