Palo Alto Networks shares slide despite earnings beat

Cybersecurity firm reports higher revenue and profits, but stock falls on investor concerns.

Published on Feb. 19, 2026

Got story updates? Submit your updates here. ›

Palo Alto Networks, a leading cybersecurity company, reported better-than-expected financial results for its latest quarter, including higher revenue and earnings. However, the company's stock price declined as investors expressed concerns about the firm's future growth prospects and margins.

Why it matters

Palo Alto Networks is considered a bellwether in the cybersecurity industry, so its financial performance is closely watched by investors as an indicator of broader trends in the sector. The stock's decline despite the earnings beat suggests investors may be worried about increasing competition and pricing pressure in the crowded cybersecurity market.

The details

For the quarter, Palo Alto Networks reported revenue of $1.4 billion, up 25% year-over-year, and adjusted earnings per share of $1.05, beating analyst estimates. However, the company's stock fell more than 6% in after-hours trading as investors focused on concerns about the firm's future profit margins.

  • Palo Alto Networks reported its latest quarterly earnings on February 17, 2026.

The players

Palo Alto Networks

A leading cybersecurity company that provides firewall, cloud security, and other enterprise security solutions.

Seema Mody

A CNBC reporter who provided analysis of Palo Alto Networks' earnings report.

Got photos? Submit your photos here. ›

What they’re saying

“Palo Alto Networks reported better-than-expected financial results, but the stock is falling as investors express concerns about the company's future growth prospects and margins.”

— Seema Mody, CNBC Reporter (CNBC)

The takeaway

Palo Alto Networks' earnings beat was not enough to satisfy investors, who appear to be worried about increasing competition and pricing pressure in the cybersecurity market, underscoring the challenges even leading firms face in maintaining growth and profitability.