Palo Alto Networks shares slip after earnings beat

Shares of cybersecurity firm Palo Alto Networks declined in Wednesday trading despite the company reporting quarterly results that exceeded analyst expectations. The stock was down approximately 6.8 percent by mid-morning, a drop that coincided with broader market pressures.

The company released its fiscal third-quarter 2026 earnings after the market closed on Tuesday. It reported adjusted earnings per share of $0.85 on revenue of $3 billion for the quarter ending April 30. These results surpassed the average analyst estimates, which had called for earnings of $0.80 per share on revenue of $2.94 billion. The company’s revenue represented a 31 percent increase compared to the same period last year.

Other key financial metrics also showed strength. The company’s remaining performance obligations, a measure of future revenue under contract, grew 36 percent year-over-year to $18.4 billion. The annual recurring revenue for its next-generation security segment grew approximately 60 percent.

In a statement, Chief Executive Nikesh Arora attributed the performance to accelerating organic bookings momentum, the company’s platformization strategy, and rising enterprise cybersecurity needs...