Palo Alto Q4 Earnings Preview: CyberArk Seen as Growth Catalyst, Guidance in Focus

Palo Alto Networks (NASDAQ:PANW) is set to report fiscal fourth-quarter results on August 18 after the close, with Bloomberg consensus calling for adjusted EPS of $0.89 on $2.5 billion in revenue; investors, however, are expected to focus less on the near-term numbers and more on fiscal 2026 guidance and the company’s recently announced acquisition of Israeli rival CyberArk Software (NASDAQ:CYBR). The roughly $25 billion deal, the largest in Palo Alto’s history, was framed by CEO Nikesh Arora as a move to capitalize on AI-driven demand for digital security, but analysts have expressed concerns about the company’s ability to integrate a platform of CyberArk’s size, especially after at least seven acquisitions in the past two years.

Key Highlights

• Palo Alto is well placed to leverage growing demand for AI protection thanks to a proven track record securing AI systems and a robust Cortex-based security foundation.
• The platformization strategy provides integrated solutions, enabling cross-selling opportunities, enhancing customer loyalty, and creating a competitive edge. Additionally, adopting a platform approach can drive operational efficiencies across product development, sales, and support functions, potentially boosting profit margins and strengthening pricing competitiveness.
• The top five cybersecurity vendors hold only 26% of the market, significantly below the 56% average across software categories. This presents an opportunity for Palo Alto to pursue consolidation and expand its market share.
• Economic uncertainties may slow down growth by causing delays or reductions in cybersecurity spending from enterprise clients. Furthermore, issues like inflation, currency swings, and trade tensions could adversely affect the company’s global operations and revenue performance.
• Transitioning to annual billing plans may pose short-term challenges for financial reporting and key metrics. This shift could lead to a slowdown in short-term billing growth and create a potential disconnect between revenue recognition and cash flow.

PANW Q4 2025 earnings after market AT 4:05 PM Monday August 18, 2025

Technical Analysis Perspective

• PANW has rejected the 207-210 resistance zone five times since December 2024.
• The first dip occurred in January 2025, dropping to 166 after two unsuccessful attempts to break the same resistance in December 2024.
• In April 2025, the price dropped further to 144, marking a fourth attempt to break through the 207-210 resistance zone, which was once again rejected.
• Prices dropped to 165 region early August.
• Last week, the stock held the 165/166 rising trendline support from the April 2025 low of 144 and rebounded to 180.40.
• As long as the 167/170 support zone remains intact after earnings, there is potential for a gradual retest of the 207-210 resistance zone.
• Failure to maintain this support could lead to a decline back toward the 144 base.

Weekly Candlestick Chart

PANW Seasonality Chart
Since 2013, Palo Alto Networks has experienced an average increase of 3% in August, with positive performance in 69% of those years, and an average rise of 1.5% in September, occurring in 50% of years.

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