PANW shares drop for worst back-to-back stretch since early 2024
Palo Alto Networks shares fell 5.2% Tuesday to $362.09 and dropped about 8% Wednesday to roughly $330, a 13.2% two-day decline. The stock’s steepest run since a Feb. 2024 guidance cut.
Palo Alto Networks Inc. (NASDAQ: PANW ) beat on both lines last quarter.
The stock is now having its worst two days since early 2024.
Shares fell 5.2% Tuesday to $362.09 and dropped another 8% Wednesday to roughly $330, a two-day decline of 13.2%.
That is the steepest back-to-back move since February 2024, when a guidance cut wiped out more than a quarter of the stock in a single session.
Fiscal fourth-quarter revenue grew 34% to $3.41 billion against $3.35 billion expected, adjusted earnings came in at $1.02 a share versus 98 cents, and the company guided fiscal 2027 revenue to $14.10 billion to $14.20 billion, roughly $300 million above consensus.
Gross margin came in at 74.8%, down 100 basis points from a year earlier.
On the call, management said cloud hosting costs will grow faster than revenue in fiscal 2027 and memory and storage costs are expected to stay elevated.
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