Palo Alto Networks (PANW) reported $3 billion in revenue for the quarter ended April 2026, representing a year-over-year increase of 31.2%. EPS of $0.85 for the same period compares to $0.80 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.94 billion, representing a surprise of +2%. The company delivered an EPS surprise of +5.29%, with the consensus EPS estimate being $0.81.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Palo Alto performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: RPO (Remaining Performance Obligation): $18.40 billion compared to the $17.90 billion average estimate based on seven analysts. Revenue- Product: $594 million versus $566.17 million estimated by 11 analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change. Revenue- Subscription and support: $2.41 billion versus the 11-analyst average estimate of $2.38 billion. The reported number represents a year-over-year change of +31.1%. Revenue- Subscription and support- Support: $776 million versus the three-analyst average estimate of $710.74 million. The reported number represents a year-over-year change of +28.9%. Revenue- Subscription and support- Subscription: $1.63 billion versus the three-analyst average estimate of $1.67 billion. The reported number represents a year-over-year change of +32.2%. Product gross profit Non-GAAP: $468 million versus $444.15 million estimated by eight analysts on average. Subscription and support gross profit Non-?GAAP: $1.81 billion versus the eight-analyst average estimate of $1.8 billion. Subscription and support gross profit GAAP: $1.6 billion compared to the $1.76 billion average estimate based on two analysts. Product gross profit GAAP: $427 million compared to the $445.62 million average estimate based on two analysts.View all Key Company Metrics for Palo Alto here>>>
Shares of Palo Alto have returned +62.8% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"
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Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).