Palo Alto's Stock Sinks Despite Solid Revenue Growth. Should Investors Buy the Dip?

• Palo Alto Networks continues to make coagulated mid-teens gross growth.

• It besides announced different acquisition arsenic it looks to beryllium an manufacture consolidator.

• The banal has hardly budged successful the past year, which could beryllium owed to its precocious valuation.

• 10 stocks we similar amended than Palo Alto Networks ›

Palo Alto Networks (NASDAQ: PANW) shares slipped past week contempt the cybersecurity institution reporting coagulated fiscal 2026 first-quarter results. The banal has been stuck successful neutral lately, and it's down modestly implicit the past year.

Let's excavation into the company's results and prospects to spot if this dip could beryllium a buying opportunity.

For Palo Alto's fiscal 2026 Q1, ended Oct. 31, gross climbed 16% twelvemonth implicit twelvemonth to $2.47 billion, which was astatine the precocious extremity of its anterior forecast for gross of betwixt $2.45 cardinal and $2.47 billion. Service gross roseate by 14% to implicit $2 billion, with some subscription and enactment gross each rising by 14%. Product gross accrued by 23% to $343 million.

The institution continued to spot coagulated momentum with its platformization strategy (selling its solutions arsenic 1 of 3 cybersecurity platforms alternatively of arsenic constituent solutions), with 16 caller platformization deals successful the quarter. Meanwhile, its XSIAM (extended information quality and automation management) platform, which combines features similar SIEM (security accusation and lawsuit management), XDR (extended detection and response), and SOAR (security orchestration, automation, and response), into 1 platform, saw its fig of deals double. This included its largest XSIAM woody to day with a U.S. telecom. The full woody was for $100 million, with $85 cardinal of that going toward its XSIAM platform.

Next-generation information continues to powerfulness the company's growth, with next-generation information yearly recurring gross (ARR) expanding by 29% to $5.85 billion. Its largest next-generation information solution is SASE (secure entree work edge), which saw its ARR ascent 34% to much than $1.3 billion. It grew its fig of SAS customers by 18% to much than 6,800.

Remaining show obligations (RPO), which is the gross a institution expects to make from existing contracts, roseate by 24% twelvemonth implicit twelvemonth to $15.5 billion, which was successful enactment with its $15.4 cardinal to $15.5 cardinal forecast.

Adjusted net per stock (EPS) roseate by 19% twelvemonth implicit twelvemonth to $0.93, which was up of its guidance of $0.88 to $0.90.

Looking ahead, Palo Alto upped its full-year guidance for gross and EPS slightly. Below is simply a array of the company's fiscal Q2 and full-year forecast.