Palo Alto Networks Stock Drops After Earnings Report
On August 26, 2026, Palo Alto Networks (NASDAQ: PANW) reported its Q4 earnings and saw a significant drop in stock price. Despite beating revenue expectations with $3.4 billion in sales—up from the projected $3.35 billion—the company posted GAAP losses of $0.35 per share compared to last year's profit, which disappointed investors. The adjusted (non-GAAP) earnings came in at $1.02 per share, slightly above expectations and showing resilience despite a 75% decline in GAAP profits from the previous fiscal year. Free cash flow for Q4 was reported as $1.3 billion with an annual total of $4.1 billion—up 17%. However, this growth is not enough to justify its current valuation. The stock fell nearly 8.5% following the report due in part to concerns over profitability and a high price-to-free cash flow ratio (72x), which many investors view as unsustainable for such modest growth.
Tickers: $PANW