Palo Alto Networks Reports Mixed Earnings, Stock Drops Nearly 9%
On September 2, 2026, Palo Alto Networks (NASDAQ: PANW) reported mixed financial results for its fourth quarter. While the company exceeded revenue expectations with $3.4 billion in sales and delivered better-than-expected non-GAAP earnings of $1.02 per share, it posted a GAAP loss of $0.35 per share compared to a profit last year. Free cash flow rose 17% to $1.3 billion for the quarter. Despite these positive figures, investors reacted negatively, sending Palo Alto Networks' stock down nearly 9%. The market appears focused on the sharp decline in GAAP earnings and concerns over its high price-to-free-cash-flow ratio of 72x given only modest growth prospects. Analysts had previously expressed optimism ahead of the report, but results failed to fully satisfy investor expectations. The Motley Fool notes that Palo Alto Networks was not included on their latest list of top stock picks for investors.
Topics: GAAP loss Palo Alto Networks Q4 earnings report stock crash